Strata Insurance is essential for Bodies Corporate and Owners Corporations as it covers the property and common contents of the scheme. The premium costs of Strata insurance are typically shared between all lot owners in the scheme.
However, the last 12 months in the Strata industry has seen a hardening insurance market due to a variety of reasons. The hardened market has made it difficult to get an insurance policy for any scheme with cladding or previous claims, as well as for schemes with no cladding or excessive claims where the Insurance premiums are increasing.
While it is near impossible to predict future premiums, Committees need to be prepared for premium increases. It is important that committees are prepared to increase insurance budgets from prior years to meet these increases. Due to this increase it is important to make an educated decision as to what the premium increase will be as it will not be just a CPI increase.
Just like insuring a house or a car, there are a number of contributing factors that determine your insurance premiums such as:
Due to the hardening insurance market in the Strata industry, all insurance premiums will increase. However, if your premiums seem unreasonable with no explanation to back up the costs, it is in the best interest of your Body Corporate/Owners Corporation to obtain multiple quotes to ensure you are covered and for the best price available.
At SSKB we are proactive in our management of your Strata schemes. We have the knowledge and experience to assist in setting budgets for your scheme. If your current Strata manager does not have the experience that your scheme requires, click here to contact SSKB today.