22 Feb Further changes to Strata Policy Excesses
In December 2022, we wrote about the Change to the CHU Strata Policy Excess. Since then, SUU has communicated a similar policy for properties in NSW, QLD, ACT, and NT with a building sum insured of less than $100 million.
Changes to SUU Standard Excess
We communicate with you today to advise of our decision to implement a change to our standard policy excess levels.
As such, effective from 1 April 2023, Residential Strata and Commercial Strata minimum standard policy excesses are changing as follows:
NSW, QLD, ACT & NT – Building Sum Insured less than $100 million
For policies for properties located in NSW, QLD, ACT and NT with a Section 1 Sum Insured of less than $100 million will attract the following minimum standard excesses:
- Section 1 Buildings and Common Contents – $2,000 all claims + as per policy wording
- Section 2 Glass – $2,000 all claims
- Section 3 Theft – $2,000 all claims
We acknowledge that some clients may view this as a significant increase from our current standard excess levels and appreciate your partnership in communicating this change.
Excess levels are one tool, along with a balanced use of other underwriting and operational approaches, that are key to managing sustainability within our portfolio and help to mitigate the risk of future premium increases for policy holders in response to rising claims costs.
These regions in particular have experienced sustained additional natural peril claims volatility as well as increased claims costs more broadly.
VIC, TAS, SA & WA – Building Sum Insured less than $100 million
For policies for properties located in VIC, TAS, SA & WA with a Section 1 Sum Insured of less than $100 million we will maintain our current standard policy excesses at this time. We will continue to monitor our portfolio position for properties located in these regions.
All Locations – Building Sum Insured $100 million or above.
For all policies with a Section 1 Sum Insured at $100 million or greater, our minimum standard excesses will increase as follows:
- Section 1 Buildings and Common Contents – $5,000 all claims + as per policy wording
- Section 2 Glass – $5,000 all claims
- Section 3 Theft – $5,000 all claims
If you have any questions or would like to discuss other excess options, please do not hesitate to contact our office on 1300 880 494 or email [email protected].
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