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Our Body Corporate has 4 contracts which cover the major cost items for the unit block. Three of these were negotiated direct with the contractors at better rates & conditions than the Strata Manager could achieve & are administered by him within his Annual Fee.
The fourth is Insurance which has been arranged by the Strata Manager through an Insurance Broker both of whom receive commission. The desire is to eliminate both commissions.
Advice has been received that Insurance Coys. will not deal direct with Body Corporates. Is this correct?
If not could you advise which Coys. are prepared to deal direct?
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I haven't experienced any difficulties in directly negotiating Insurance for our self-managed Plan (NSW) with Insurers such as CHU & SUU, although none would reduce our premium to account for the fact that they would be paying 22% of that same premium as a commission to a Strata Manager (as their Agent) if we had one!
Our Building Insurance is due in November and I propose to deal with a Broker who will entertain the concept of sharing his/her commission (>50:50) with the Owners Corporation.
Any knowledge about Brokers who may do that would be appreciated.
Our insurance renewal has recently been paid and the Executive Committee have had trouble getting details of the premium paid.
We requested, from the Strata Manager, a copy of the premium breakdown that was paid (should be on a Tax Invoice!)
Our reply from the Strata Manager:
“our insurance department advised that the insurer cannot give us a breakdown. Our insurance department advised that they can provide you with a paid insurance policy and you can obtain a quote when fall due”
Doesn’t sound right to be. Should be easy enough to get a premium breakup! What are others thoughts? Thanks!
Angela – your Strata Manager will be able to provide your Committee with an Insurance Certificate, that will show:
- the “events” that your Plan is covered for;
- the sum insured for each of the above;
- the Base Premium ($);
- the Levies ($) – such as the Fire Services Levy; and
- the GST ($)
Your Plan's Strata Management Agreement will include a disclosure section where any Commission that your Strata Managers receive as a percentage of, and inclusive within the Base Premium will be declared.
A few quick calculations will give you the breakup that you're seeking.
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