› Flat Chat Strata Forum › Living in strata › Drawing the line on holiday lets › Current Page
Gillian – in order to cover our bases I contacted our building’s insurers a couple of years ago to advise that five (5) of the Lots in our self-managed Plan were then available for holiday / short-term occupancy.
The insurer’s representative told me that those details would be noted on our Policy, and that as the level of holiday / short-term occupancy was only around 20% of building’s total Lots, that no change to the extent or nature of our cover or to our premium would result.
I queried what percentage of that type of occupancy would affect our Plan’s cover and premium, and the insurer’s advice was that it varies from one geographic area to another. No other specifics were provided.
So my advice would be for owners corporations to fess-up, and to take into consideration that any increased premium that consequently arises can be recovered from the proprietors of Lots within N.S.W. whose activities gave rise to that increase.
77. Effect of use of lot on insurance premiums
If the use to which a lot is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of premium.
Note the sting-in-the-tail though, where those proprietors would currently need to agree – so just hope they’re unfamiliar or feel obliged to comply with Sect 77 the NSW Strata Schemes Management Act or perhaps wait until July 2016 when the new Act commences, where O/Cs may then seek Orders in the Tribunal against those proprietors who unreasonably refuse such an arrangement.