@gwyn said:
We are a small complex of 7 villas. We have five resident/owners on the SC. We are looking at renewing our insurance but are considering taking out some cover under the Office Bearers Legal Liability policy which we have never had .First question: please give a ballpark of what sort of premium cost this might be. (I can’t get an answer from the insurer or the Strata Manager)
We have it but it has always been part of a bundle in the general strata insurance policy.
Second Question: do you recommend including this cover?
The five committee members have agreed to include the cover by informal discussion, but the Strata Manager reckons we need an Extraordinary Meeting of the Owners Corp (which means the other two owners included) who are not residents. The Strata Manager quotes us $330 to hold the meeting.
I doubt it would cost much. In spite of having similar confusion to that expressed by JT above, I would include it since it is typically part of a comprehensive strata insurance policy.
With only 7 units, if you have to have a general meeting, why not just call a meeting yourselves? Ask the strata manager to mail the notice to the two non-residents. Surely you can have the meeting on-site in someone’s living room. The two non-residents could attend or send an absentee vote or proxy or just not bother to take part.
Third question: is this matter insignificant enough that the committee members can agree without the cost etc of a formal meeting being called?
As for whether you need a general meeting to approve the expenditure: I presume you have a budget agreed by resolution of the last AGM. If an insurance policy including this cover would not be very different from the amount budgeted for strata insurance, then I think you can go ahead. What was the form of the resolution on insurance at the AGM? If it was that the SC renews insurance when in falls due with the amount in line with a valuation of the property or the insurer’s recommendation for increase since the last valuation or something like that, then it is probably OK for the committee to decide to renew with a general strata insurance that includes this cover.