Strata Insurance Insights: Helping Owners Overcome Placement Challenges

CRM Brokers specialises in helping Owners Corporations secure the most appropriate strata insurance, even in challenging situations such as extensive claims history, building defects and maintenance issues.

Here are some recent examples that showcase how we’ve helped Strata Managers and Owners achieve successful outcomes, even when faced with challenging situations.

Securing Coverage Through Proactive Communication

An Owners Corporation received a non-renewal notice from the holding insurer just 30 days before expiry as a result of building defects and an extensive claims history. Because our strata broking team had been in regular communication with the strata manager and owners about these issues throughout the year, we were adequately prepared to approach the market and find an alternate solution for the client.

Over the course of the year, we had contacted the strata manager at three month intervals to seek an update on their progress with defect remediation. By doing so, we could confidently demonstrate to insurers that the Owners Corporation had been taking steps to address outstanding defects.

This proactive approach enabled us to communicate a comprehensive plan of action for the defect rectification works to insurers. This included a defined scope of works and a detailed timeline for completion. Consequently, we were able to secure an alternate policy for this client with an insurer.

Key Takeaway: A proactive approach to defects gives Owners the opportunity to address their building defects and allows us to present the best possible risk to the market at renewal time. While each insurer has a different appetite when it comes to defects, there are markets still willing to insure buildings with a thorough defects remediation plan in place.

From uninsurable to insured: Overcoming a year without coverage

We were approached by a Strata Manager with a property that had not been insured for almost a year due to structural defects, including waterproofing failures. Previous brokers that had managed this account had only been able to provide quotes from overseas markets at a significant cost.

On review of this account, we identified that this property did not have a robust plan of action for the remedial works. We worked with the strata manager and owners to prepare a comprehensive plan of action, including a defined scope of works and comprehensive timeline. By providing this comprehensive plan of action and level of detail, the insurers gained a clear understanding of when the issues would be resolved and had confidence that the defects would be repaired timeously. As a result, we secured a full twelve-month policy with an Australian insurer.

Key Takeaway: We do not shy away from distressed and complex risks. It’s never too late to engage us and we are always willing to work with owners that have a proactive approach to defects management.

Don’t let complex insurance issues leave your Owners Corporation exposed!

Our proactive approach and expertise in difficult situations can help you secure the right coverage. Contact CRM Brokers today on 1300 880 494 (Dial 2 for Strata) to discuss your strata insurance needs.


Stay Informed – Connect with us on LinkedIn


Important Notice

Disclaimer:  Terms, conditions, limits, deductibles and exclusions apply to the products referred to above. Any advice in this article is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before making a decision to acquire any product(s) or to continue to hold any product, we recommend that you consider whether it is appropriate for your circumstances and read the relevant Product Disclosure Statement (‘PDS’), Financial Services Guide (‘FSG’) and the Target Market Determination (‘TMD’) which can be obtained by contacting CRM Brokers.

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.