Strata insurance is a highly specialised insurance product, usually incorporating the following elements into a single policy:
Whilst strata insurance covers some of the same things as normal home and contents insurance, it operates quite differently. For more information on what is included and excluded from typical strata insurance policies, read our website FAQ about insurance.
Strata insurance is assessed and renewed annually, and strata insurance pricing is set by each insurer independently. There are some common factors considered by all strata insurers when determining the renewal premium.
Insurance companies (including strata insurance companies) are generally underwritten by large global companies. Those companies set their pricing based on their own financial position. A natural disaster (such as bushfires in New South Wales) may impact Queensland strata premiums, as the insurers may be financial impacted by large events. Usually these large disaster or other global events affect all insurers, meaning most policies increase in a similar way.
Insurance companies track their claims and trends very carefully. If an insurance company sees a trend of claims across other buildings (e.g. burst flexi-hoses), the insurer may ask questions about your body corporate, and apply a risk-requirement that your body corporate inspect all of its flexi-hoses to see if any are defective. If your body corporate does not comply with this request, the insurer may increase premiums or apply an additional excess based on the increased risk that your body corporate may make similar claims.
Some of these factors are out of the body corporate’s control (like natural disasters), however there are ways that the body corporate can keep the annual insurance premium as low as possible:
Our BCsystems strata managers are experts at the factors which influence strata premiums. If we see an opportunity for your body corporate to minimise its insurance premium increase, we will advise you.
By-laws are the set of regulations established by a body corporate to oversee and regulate how a body corporate should operate. Your scheme’s by-laws are found in Schedule C of your body corporate’s Community Management Statement (CMS).
Many body corporate decisions are decided by vote at either an annual general meeting or an extraordinary general meeting. This article looks at the different types of resolutions and the criteria required to determine an outcome.
