Topic: Is our Strata Over insured? – FLAT CHAT

This topic has 3 replies, 2 voices, and was last updated 14 years, 5 months ago by .

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11/04/2012 at 7:50 am #8059 Reply | Quote
Cosmo
Flatchatter
II live in a block of 4 units and our strata plan has been in existence sine 1978. Our OC recently had our strata valued and the valuation was $2.1 million. Our insurance is due and the value insured is for $2.6 million.

There appears no discrepency between what is valued and what is insured. Nor is there anything in the insurance policy that indicates any reason we should be insured for more than the valuation. There are the usual clauses in both the valuation and the insurance regarding improvements and allowane for removal of debris etc. There is not anything in our records that would indicate why the Strata is insured for more than it is valued.

The strata legislation requiring both valuations and insurance only says that the OC needs to insure the Strata for at least the valuation. It would appear just on the figures that our strata is over insuring by over 20%. I could understand and accept if the it was say around 10% or less but the over insurance seems quite a lot.

I remember years ago a friend of mine telling me over insurance was as bad as under insurance. Should our OC insure for the valuation or the amount nominated by our insurance company? What are the risks of doing either?

Thanks in advance
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Reply To: Is our Strata Over insured?

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