Is it time to review your cover limits?

Is it time to review your cover limits?

CRM Brokers would like to remind the Owners Corporation how important it is at each renewal to ensure the Sum Insured they select complies with section 161 of the Strata Management Act 2015 and clause 39 of the Strata Schemes Management Regulation 2016.

The Owners Corporation must keep their building(s) insured for at least the amount required for the building(s) to be rebuilt/replaced and/or repaired/restored (reinstated).

The Owners Corporation should consider that the total cost of repairs/restoration^ for a partially damaged building can be greater than the full replacement value. A valuation report carried out by a prescribed professional for insurance purposes that incorporates these factors may assist the Owners Corporation when deciding the sum insured(s) that they believe is most appropriate for their circumstances to prevent being under-insured.

You may wish to refer to the following link for our last article regarding “reinstatement cost” in order to help guide you through the initial process. The article is available on our website here.

If you are unsure about your building sums insured or it is time to review your cover limits, please feel free to contact CRM Brokers on 1300 880 494.

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