08 Dec Changes to Strata Policy Excess

Back in May 2022, we wrote about Why are Strata Insurance Excesses Increasing and discussed standard minimum excesses being increased to $1,000 across a number of insurers. Recently CHU Underwriting Agencies distributed an important update for their policyholders in relation to this, which we have published below with their permission.

Change to the CHU Strata Policy Excess

The property insurance sector has endured consecutive years of unprecedented events that have affected overall profitability.

The challenges that presented themselves with COVID including labour shortages and increasing costs of materials have been exacerbated by weather-related catastrophe events all over the globe. Closer to home, the east coast of Australia has seen its third consecutive year of La Nina activity, not only resulting in devastating floods but also ongoing storm and heavy rain activity.

The most effective lever CHU has against continued pressure on premiums is the policy excess. Therefore, in order to combat claims inflation pressures and continuing rising reinsurance cost we have reviewed the excess structure for CHU Residential Strata Insurance, Commercial Strata Insurance Plans and Build to Rent.

For all policy renewals with a renewal date of 27th January 2023 or after, the standard policy excess for all claims will apply as follows:
• For policies with a building sum insured > $2M – $2,000 all claims excess
• For policies with a building sum insured > $50M – $5,000 all claims excess

For existing policies with a building sum insured < $2M, the standard all claims excess of $1,000 will remain.

The above excess structure represents the standard excess application and is of course subject to ongoing underwriter review and change based on claims performance, etc.

Strata policy owners may choose to buy down to a lower excess which will result in a premium increase (subject to underwriting). Alternatively, they may wish to increase the excess to determine what effect this may have on the overall premium.

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].

Important Notice

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which can be obtained by contacting CRM Brokers or downloading it from the agency’s website before deciding to acquire, or to continue to hold, this product. Insurance policies issued by various insurers often differ.

Information is current as at the date the article is written as specified within it but is subject to change. CRM Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of CRM Brokers.