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I appreciate the question has a lot of variables but what is a “normal” figure, per year, per lot, for building insurance cost?
Is $1000 per lot for a $8.3 million damage policy unreasonable?
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I can only refer with any certainty to a 20-year-old building of about 130 units with a valuation (coincidentally) of $130m where the premiums are just shy of $150K. All of which adds up to $1150 per unit per $1m dollars of value. So you are in the ballpark as far as cost per unit goes.
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I can give you some figures for my unit. In a regional NSW city, 22 townhouses, November 2024. Quotes ranged from 13k to 16k. So, from about $1650 to $2000 per $1 million. Zero risk of flooding, but 40-year-old single story buildings of brick, weatherboard and glass construction.
I can give you some figures for my unit. In a regional NSW city, 22 townhouses, November 2024. Quotes ranged from 13k to 16k. So, from about $1650 to $2000 per $1 million. Zero risk of flooding, but 40-year-old single story buildings of brick, weatherboard and glass construction.
Sorry, forgot to add that this was for a valuation of $7.9 million.
There is no definitive answer to this.
Each building is assessed by each insurer as to risk.
And each insurer asseses risk differently.
Age, condition, fire services, number of previous claims, excess etc all play into assessing the risk.
For one of my buildings we found the best value was to engage agood broker to do the leg work. We made sure that the risk assessment document was accurate, and even provided information to the insurers to show we were low risk
Were you “allowed” to go to a broker and there was no penalty re still having to pay the commission?
For one of my buildings we found the best value was to engage agood broker to do the leg work. We made sure that the risk assessment document was accurate, and even provided information to the insurers to show we were low risk
Now that the act has changed, the strata manager cannot get a commission if the owners get their own insurance.
Our strata manager used to collect a commission . But even before the act changed we negotiated a no commission contract.
As well we negotiated with the insurance broker a flat fee for their service, so they did not receive a commission from the insurance company.
So then everyone is not incentivised to get the product that provides the highest commissions.
Our building has 6 apartments and we’re paying about $12K insurance. Our broker asked about 10 companies to quote and all but 2 declined. We made a claim 2 years ago (for a few thousand dollars – some burst water pipes caused some damage) so now we are considered high risk.
Now that the act has changed, the strata manager cannot get a commission if the owners get their own insurance.
Our strata manager used to collect a commission . But even before the act changed we negotiated a no commission contract.
As well we negotiated with the insurance broker a flat fee for their service, so they did not receive a commission from the insurance company.
So then everyone is not incentivised to get the product that provides the highest commissions.