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My question is our strata complex includes a petrol station that has no insurance for pollution apparently. We have had to pay for smoke damage to an above unit due to the petrol station having a fire in one of their fridges. Now our insurance company wants to charge us $24000 just for pollution insurance even though it was a fire at the petrol station.This doubles our insurance and seems excessive, what should we do?
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Is the petrol station a part of your strata? If so, you may be able to pass on the costs to the petrol station. I’m sure people who are more experienced in this will be along to confirm.
I’m sure people who are more experienced in this will be along to confirm.
And here I am. Section 82 of the strata Act allows strata schemes to charge owners more that their normal levies if their use of their lot means insurance costs are increased. They can either do it via mutual agreement or seek orders at the tribunal.
82. Individual contributions may be larger if greater insurance costs(1) If the use to which a lot in a strata scheme is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.
(2) The Tribunal may, on application, make an order for payment of contributions of a different amount to one or more contributions levied or proposed by an owners corporation on an owner if the Tribunal is of the opinion that the owner’s consent has been unreasonably refused under this section.
(3) An application for an order under this section may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner of a lot or a mortgagee in possession.
However, as the poster says, this is contingent on the gas station being part of the strata scheme.
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Thanks heaps I will pass this on to my Strata co