Under-insured building

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  • 22/02/2011 at 3:46 pm #7250 Reply | Quote
    andykaye
    Flatchatter

      Hi

      When I bought my apartment, I was advised by my solicitor that the apartment block that I bought into appeared to be under-insured by what she thought was a significant amount.  When I mentioned this to one of the members on the executive committee, s/he said there was no point in increasing the insurance as the block of land was worth more than the building itself.  However, as I've just joined the committee, I'm concerned about this lack of insurance.  I've been told by friends that if anything happened to the building, the insurer would not be obliged to pay out the insured amount.  There is also the risk that members of the executive committee would be liable for the under-insurance.  Is this correct?  What problems can occur if a building is under-insured?  Are there any additional risks if the building is knowingly under-insured?  Thanks.

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    Reply To: Reply #12483 in Under-insured building
    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.

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