This article discusses whether an unapproved carport conversion must be disclosed to insurers and how it may affect cover under unapproved carport conversion impact on strata insurance WA.
Question: Is the strata company required to disclose an unapproved carport conversion to their insurer?
A few years ago, without approval, a lot owner converted their carport into a living area and did not apply for a building permit from the council. Should we disclose this unapproved work to our insurer, and how might it affect the strata property’s insurance?
Answer: Whether converting a carport into a living area is relevant to these conditions and needs to be disclosed for insurance purposes is debatable.
When you apply for an insurance policy, or renew or extend your existing policy, you have to tell the insurer everything about you and your situation that is relevant or could reasonably be expected to be relevant to the insurer’s decision to insure you. You don’t need to disclose something:
- that you don’t know,
- that reduces the insurer’s risk,
- that is common knowledge,
- that the insurer knows or ought to know,
- or something that’s not relevant, or the insurer has told you that you don’t need to disclose.
When in doubt, it’s prudent to err on the side of caution. However, whether converting a carport into a living area is relevant to these conditions and needs to be disclosed for insurance purposes is debatable. This is because the activities conducted in a residential living space remain largely unchanged, regardless of such a conversion.
In the context of damage claims for the living area, it’s important to note that some insurance policies do not cover damages related to illegal installations. Therefore, any claims for damage to the carport that has been converted without proper permits may be excluded from coverage.
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.
This post appears in Strata News #776.
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