This article discusses the strata insurance claim process through manager and why insurers redirect owners to their strata manager when lodging a claim.
Question: Why have I been referred to my strata manager to make a claim regarding our strata insurance? Surely the insurance company has a claims person.
Why have I been referred to my strata manager to make a claim regarding our strata insurance?
Why are they involved? Surely the insurance company has a claims person though I note the Strata Company gets paid a “premium” when we take out insurance through their recommended broker.
Answer: A broker will provide advice, whereas the strata manager will generally ensure communication is actively passed to the lot owners and help to follow up matters that need to be acted on.
Generally insurers will redirect a Lot Owner back to the broker or Strata Manager looking after that strata company. The Strata Manager usually holds the records of the strata company, which includes all the names and addresses / contacts of Lot Owners, so they are able to identify if the person inquiring to lodge a claim is entitled to make a claim on that policy.
However, the above may not stop lodgement of claim details being made, but confirmation of the claim made will generally be sent through to the broker or Strata Manager before it proceeds.
As an example: there may be a high excess or in some cases the Council of Owners wants to be made aware of all claims before they are submitted.
These are some of the reasons claims may be redirected back.
A Strata Manager’s role includes the administration handling service of the Strata Company. This includes arranging and requesting insurance quotes for the strata company and administrating all claims communications and attend to any emergency repairs if required. Strata Managers usually have a number of maintenance builders who can attend to emergencies and make safe repairs if required.
Insurance companies do have claims personal to support your claim. After the claim is lodged, direct contact with the Lot Owner/tenant/Property Manager usually happens by the insurer assigned builder/assessor if the claim requires such. The strata manager may not be as involved if the claim exclusively affects a particular lot.
It is usually only during the initial lodgement that claims are generally re-directed back through the broker or Strata Manager. A broker is involved in the claims management and communication process, and often assists Lot Owners or their representatives when reviewing claim entitlements, helping with assessors and so forth, to ensure that repairs are satisfactorily completed. A broker will provide advice, whereas the strata manager will generally ensure communication is actively passed to the lot owners and help to follow up matters that need to be acted on.
This post appears in Strata News #551.
Leonie Milonas PSC Property Lync Insurance Brokers E: leonie@lyncinsure.com.au P: 1300 127 503