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Building insurance is an expensive business, few would argue. When costs rise a common option is to find other suppliers and compare quotes. Sensible. However, when it comes to strata building insurance that’s an almost impossible idea. As policies increase the renewal notice more often than not comes with a ‘take it or leave it’ provision. So much so that any reasonable questions about the policy options are in the case of my experience simply batted away. For example; ‘we’ll increase the excess’ response, you can but the premium remains. Another; ‘ we’re in one of the highest spots in Sydney and flood insurance looks excessive’ response, tough luck. And just one more; ‘you’ve got outstanding maintenance defects’ so that’s a higher premium, no not really they are all very minor items, more a housekeeping issue, response (from the insurance company) we won’t accept that. I could go on but hopefully you get the picture. The result, ever increasing premiums, little or no ability to amend cover or obtain comparison quotes and a view that strata building are easy targets, the cream of a very tightly held insurance market. Or am I wrong?
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It would help if a few more MPs (and tribunal members) had experienced a couple of years as secretary of a strata plan. While we’re waiting for that to happen, I suggest we need more control of the insurance industry and possibly the establishment of a government-run insurance office like we used to have in NSW which would ensure some competition for strata insurance.
In our case, they offered 6 months’ cover (for the same premium we paid last year for 12 months) and specified a repair program they want us to begin before they renew further. They think our building is dilapidated. If only they’d care to come and inspect they’d see that it’s not dilapidated.