Topic: Strata building insurance – FLAT CHAT

This topic has 10 replies, 9 voices, and was last updated 8 years ago by .

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02/08/2018 at 6:04 pm #11807 Reply | Quote
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Flatchatter
As a strata committee member, we recently went through the strata insurance renewal process.

The proposed quote comes back with 50% and above increase to premium, primarily due to the increase in sum assured.

As a committee, we felt that it is not justified to have building sum assured increase by more than 50% over one year and went back for a lower sum assured quote (20% increase).

We got knocked back from the broker saying that insurer determine the building valuation hence does not accept quoting for a 20% increase in building sum assured. Full stop!

It appears that there is ‘moral hazard’ from broker and/or insurer to over-inflate the total sum assured for a higher premium. As OC, we got no choice but to go with unreasonably large increase in sum assure.

Is there anything we can do as a committee?
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Reply To: Reply #30265 in Strata building insurance

PLEASE ... If your property is not in NSW, mention its location (state). Don't identify companies or individuals by name. Don't mention or promote your company or services. Keep acronyms and initials to a minimum. Please, don’t use “quote” unless there is a specific point to which you wish to refer, then highlight (define) that specific passage before you click on "quote". Otherwise just use reply. THANKS.