Flat Chat Strata Forum Strata Committees Current Page

  • Creator
    Topic
  • #61042
    justasking
    Flatchatter

    What happens when a decision which takes place after the circulation of the AGM minutes (a) contradicts what was resolved in the minutes, and (b) potentially impacts all lot owners significantly? Should the OC Manager have informed all lot owners of the significant change?

Viewing 12 replies - 1 through 12 (of 12 total)
  • Author
    Replies
  • #61053
    Jimmy-T
    Keymaster

    We’ll need more on the nature of the change and the the impacts it created before anyone cam make a considered response.

    #61062
    justasking
    Flatchatter
    Chat-starter

    Insurance excess that lot owners are liable for in the event of a claim is increased by 2.5 times to $2500. This is after it was circulated in AGM minutes that it would be $1000. By the way, I’m located in VIC. Thanks.

    #61065
    scotlandx
    Strataguru

    So could you explain how that contradicted a decision that was made by the owners?

    As a general observation, insurance excesses are skyrocketing. We had a claim a year ago where the excess was $5K. We had another claim at the end of last year and the excess is $10k.

    #61068
    Jimmy-T
    Keymaster

    If one of the impacts was a lower premium would you still be annoyed.  or is it the principle of the strata manager choosing a different policy form what was agreed on?  And what would their commission on the two amounts be?

    #61066
    justasking
    Flatchatter
    Chat-starter

    I suppose how much your excess is would be a function of (1) what insurance policy your OC Committee approved, (2) what you had actually claimed. That would probably be acceptable if you knew upfront what you (personally as a lot owner) would be up for if you had to make such a claim.

    It is quite different from my question about whether when given an impression via AGM minutes that the excess would be $1,000 and it being subsequently increased to $2,500, requires that all lot owners be informed of the change.

    #61067
    kaindub
    Flatchatter

    As scotlandx said, insurance is in a state of flux at the moment.

    The decision at the AGM may have been to have an excess of $1000, but your broker probably was unable to get insurance at a reasonable price with thst excess, if at all.

    My understanding of the current situation for strata insurance is that it’s take it or leave it, by the insurers.

     

    #61072
    justasking
    Flatchatter
    Chat-starter

    Fair enough if the option that was originally resolved costs too much or is not available.

    Should owners be informed about the terms of the renewed policy or do they have to wait for the next AGM to find out?

    #61078
    kaindub
    Flatchatter

    The current policy details are included with the AGM notice

    Whilst the strata manager often gets quotes for the insurance, it’s up to the committee to decide which one to take.

    Unless the owners have limited the decision making power of the committee, the committee does not need to refer back to the owners.

    The current policy should be on your strata portal (assuming you have a strata manager and they have set up a portal)

    #61089
    Sir Humphrey
    Strataguru

    My understanding of the current situation for strata insurance is that it’s take it or leave it, by the insurers.

    Our committee just had our insurance broker seek quotes and all insurers declined except the insurer we were already with. The premium is a 25% increase on the previous year, which in turn was a substantial increase on the year before. For much of the last decade, the premiums were about half what they are now and the increase would have been even more if we had not accepted an increase in the excess from a few hundreds of dollars per claim to $2500 for most things and $5000 for some particular events.

    Influencing this was some large claims over the past couple of years but the broker said these large increases are not just reflecting our situation or even strata insurance in general or Australian insurance in general but is part of an international trend. Frankly, I think we are starting to see climate change risks reflected in our premiums.

    #61096
    justasking
    Flatchatter
    Chat-starter

    I realise I wasn’t using the quote function correctly previously. Here it is again, take 2!

    The current policy details are included with the AGM notice

    Actually, they are not.

    Whilst the strata manager often gets quotes for the insurance, it’s up to the committee to decide which one to take.

    Absolutely! I agree with that.

    Unless the owners have limited the decision making power of the committee, the committee does not need to refer back to the owners.

    Not a matter of referring back for approval but to notify owners of what the renewed policy is, especially when it is materially different to what was resolved would be renewed at the AGM.

    The current policy should be on your strata portal (assuming you have a strata manager and they have set up a portal)

    Nope, it’s not on the portal.

    • This reply was modified 3 months, 2 weeks ago by .
    #61100
    kaindub
    Flatchatter

    Justasking

    as you answered in the negative to my comments, I’d be looking for a new strata manager.

    #61101
    kaindub
    Flatchatter

    Justasking

    as you answered in the negative to my comments, I’d be looking for a new strata manager.

Viewing 12 replies - 1 through 12 (of 12 total)
  • You must be logged in to reply to this topic.

Flat Chat Strata Forum Strata Committees Current Page