New insurer secretly appointed

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  • 22/01/2023 at 8:54 pm #67204
    TrulEConcerned
    Flatchatter

      Good day to all,

      I do not believe I have asked this question already, if so, I appologise.

      Can a strata committee together with an agent:

      Refuse to list 3 quotes at the AGM;
      Insure in secret ie with no meeting (not strata committee and not general);
      Not communicate to the mugs, like me, that there is a new insurer;
      Insure with a new insurer at a far higher price than the moved-from-insurer charged; and
      Refuse to explain to owners why the premium is 51% higher.
      If so, what sections of the SSMA are they breaching?

      I spoke to the insurer from whom the OC moved. The insurer refused to renew coverage citing fire order

      works were not performed by the strata (as the insurer expected).

      Note in a small scheme, the price hike is a significant impost.

      Thanks.

      • This topic was modified 1 year, 8 months ago by .
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    • 24/01/2023 at 5:06 pm #67222
      Jimmy-T
      Keymaster

        These are questions to ask at your AGM.  I can’t see any aspect of law that specifically covers this but your fellow owners may be less than impressed, especially if you can come up with cheaper quotes for the same level of cover.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        24/01/2023 at 7:57 pm #67244
        kaindub
        Flatchatter

          Your question provides the answers.

          Your old insurer would not renew insurance. These days insurers are being extra tough, and in many cases deciding not to insure buildings, many times for reasons not of the doing of the owners.

          That means that any renewal is probably going to be more expensive because insurers ascribe a higher risk.

          Ive seen my building insurance go up 150 % in less than 3 years.

          And because some insurers are refusing to quote, it’s not possible to get three quotes.

          I’d say your building is lucky to get insurance.

          27/01/2023 at 2:18 pm #67281
          TrulEConcerned
          Flatchatter
          Chat-starter

            @Jimmy, thanks.


            @Kaindub            , my issue is that the former insurer hinted that she will not insure for the coming year because the strata scheme failed to attend to fire orders. I want to know why? Was the strata manage sleeping at the wheel?

            01/02/2023 at 9:16 am #67303
            kaindub
            Flatchatter

              Hi Trueleconcerned

              Ive read a lot of your other posts and find that your “ facts” are often not telling the full story.

              You indicate your building received a fire order which the strata manager failed to attend to.

              A fire order is issued by your local council. It’s a very serious notice and requires compliance within a specified time. The strata manager only acts on the instructions of the committee. Why is the committee not instructing the strata manager to get quotes and then have the issues fixed?

              Your insurer was doing you a favour. The “ hint” of declining insurance is better than getting a formal decline. Once you get a formal decline, you will need to disclose this for any future insurance quotes and that just leads to either further declines or incredibly high premiums.

               

              • This reply was modified 1 year, 8 months ago by .
              01/02/2023 at 9:17 am #67345
              nixjet
              Flatchatter

                We use a broker through our SM. We always get multiple quotes in a report from the broker. The report also lists those insurers who refused to quote. In our building the SC is authorised to spend up to $15k without an AGM Or SGM. So far our insurance has always been under this amount and the SC always proceeds with an insurer who meets our needs. The quoting process provides scrutiny. You should be able to ask the SM or SC for evidence of approaching the market to obtain the best quotes.

                02/02/2023 at 12:53 am #67352
                TrulEConcerned
                Flatchatter
                Chat-starter

                  Hi nixjet,

                  Thanks for the reply. Most stratas go through brokers these days I hear because many insurers will not deal with the owners themselves.

                  As to your specific comment: I did approach the broker asking about the move to a new insurer and whether he offered to committee 3 quotes because the owners did not see three quotes. Or even one quote. As mentioned earlier, my investigation revealed that a new insurer was chosen by the committee and the premium was paid in secret.

                  The broker wrote back to me that he did not have the answers and referred me to the committee and strata manager.

                  Seems like he doesn’t want to put anyone’s nose out of joint. Oh, and keep doing what’s needed to remain the broker.

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