Insurance loans for cash-strapped strata schemes

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With strata insurance being one of the few mandatory expenses in apartment blocks – even essential maintenance can be delayed and deferred – it looms as a serious concern for blocks that are facing a potential reduction in cashflow from unpaid levies due to the coronavirus.

With that in mind, Lannock finance is offering pre-approved loans to pay your strata scheme’s annual insurance to all owners corporations and body corporates in Australia.

Lannock, a long-time sponsor of Flat Chat,  has released a simple insurance premium funding loan to assist owner corporations (OC) and community associations in times of financial hardship.

“Every strata corporation on mainland Australia has been pre-approved,’ says Lannock Head of Business Development Phil Bottomley.

“Our loan complies with the Consumer Credit Code, it’s for a more convenient 12-month term and we will never cancel the insurance if the OC misses a payment.”

Also, he says, there are no fees and depending on which state you are in, the strata manager or committee may be able to sign under delegation.”

“There is a great and understandable fear that OCs might have a cashflow shortfall during the virus crisis if owners do not pay levies,” says Phil.

“Some of the state governments’ responses to rental payments might exacerbate this.  We want to ensure that all owners corporations can pay their insurance so we have pre-approved all strata corporations in QLD, NSW, VIC, SA, WA, ACT and NT.”

Anyone interested in applying should email Phil at philip@lannock.com.au along with your name and contact details, a copy of the insurance tax invoice or renewal notice and a recent owners corporation (body corporate) bank account statement.

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