This article discusses strata insurance claim owner approval rights and whether a lot owner can lodge a claim without council consent.
Question: Can a lot owner lodge an insurance claim against the Strata Company insurance policy without approval from the Strata Council?
Can a lot owner lodge an insurance claim against the Strata Company insurance policy without approval from the Strata Council?
Can a Strata Manager assist a lot owner to lodge an insurance claim against the Strata Company insurance policy without approval from the Strata Council?
We were under the impression that a claim needs to be approved by the Strata Company prior to lodgement so the Strata Company may exercise their option to pay for damages and not claim against the policy.
Our Strata Council has been told any lot owner can lodge a claim. The Strata Council is concerned that excessive claims could jeopardise our policy and result in higher excesses and premiums.
Answer: A lot owner who has contributed to insurance premiums for a policy covering property they own can demonstrate an insurable interest in the policy.
Generally speaking, a lot owner who has contributed to insurance premiums for a policy covering property they own can demonstrate an insurable interest in the policy. This means in instances where there is a disagreement between the owner and committee over whether a claim should be lodged, an insurer may give precedence to insurable interest over committee expectation.
The committee can dispute the lodgement of the claim, but we believe ultimately the owner’s insurable interest will prevail over the committees express wishes.
The Strata Titles Act sets in place a requirement for the strata corporation to insure assets defined in the Act. It does not give the strata corporation the ability to choose which claims are lodged, nor does it give the strata corporation the ability to deny an owner from accessing a policy they are insured by.
This post appears in the June 2022 edition of The WA Strata Magazine.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.