Insurance (a legal requirement)
Insurance aspects – including the nature and extent of cover, premiums and claims recovery – are amongst the most significant considerations for an Owners Corporation. We are well placed to guide and assist with insurance related matters, including obtaining quotations to handling claims with insurers who have appointed us as their authorised representative.
Strata Management holds Australian Financial Services Licence and Authorisations, and is an authorised representative (no. 269111) of Consolidated Insurance Agencies Pty Ltd (CIA) and Corporate Home Unit Underwriting Agencies Pty (CHU). Our managers are therefore well trained to assist and guide in aspects of insurance offered to an Owners Corporation by CIA and CHU: they include obtaining quotations, handling claims and general information.
*Please note we are prevented by the Australian Financial Services legislation to comment or provide assistance on insurances where we have not been appointed as authorised representatives.
Our relationship with CIA and CHU allows us access to most of the insurers that provide Owners Corporation cover.
Owners must be fully aware of the cover provided by a policy of insurance and to assist you. Here is the link to Consolidated Insurance Agencies (CIA) website where you will find the Policy Document Schedule (PDS) documents from the underwriters that are used by the Owners Corporations we manage. Please contact us if you are not sure who the underwriter is for your Owners Corporation.
What’s covered by the Owners Corporation insurance?
In Melbourne, and across Victoria, body corporates – now called owners corporations – are subject to a number of obligations and responsibilities under the Owners Corporation Act 2006 (and other legislation).
In most instance the insurance requirement by the Strata Scheme will depend on whether it is a residential strata or a commercial/Industrial strata. Why does a Strata Scheme or body corporate need insurance, the purpose of the insurance is generally to the strata scheme or body corporate against the key areas such as liability for public areas, building damage and repair, cost of recovering after a disaster, theft and damage in relation to common area contents, and legal liability of body corporates.
What Strata insurance does not cover, is cover for household and personal possessions such as clothing, jewellery, furniture, TV, computers, internal carpets, blinds and electrical appliances belonging to yourself and your family members.
It also does not cover property owners who are renting out a unit/apartment/flat to tenants. It protects the property owner and their investment property from any damage to the contents from events such as fire, flood or storms. It covers items such as carpets, light fixtures, built-in wardrobes and kitchen cupboards as well as loss of rent if the unit is unfit to be occupied.
**NOTE – These comments are general in nature, they are not intended to be construed as advice or recommendation as each policy is specific to the insurance risk and may or may not incorporate some or most of these areas. The information contained here is for general purposes only.
If you are interested in Content or Landlord cover please see the section below and follow the links.
CHU Insurance
CHU is one of Australia’s largest and most awarded insurance underwriting agencies.
Link: Combined Landlords and Contents quote
Insurance Placement Compliance and Strata Management Victoria
Authorised Representative – Financial Services compliance
Strata Management Victoria manager’s are authorised representative of CHU Underwriting Agencies Pty Ltd and Consolidated Insurance Agencies Pty Ltd for the transaction of strata insurance products and as such is qualified to give general advice about insurance offered by them only. Australian Financial Cervices Licences and Authorisations Licence Number 243261 Rep No 269111 and Licence No 245584 Rep No 269111
Owners should refer to the specific policy for exclusions and conditions. If Strata Management is already your manager and you require a copy of the product disclosure statement please contact your Owners Corporation Manager or your insurer.
Will our money be safe?
Strata Management follows industry best practice to ensure your funds are secure. The firm’s sophisticated accounting software provides detailed reporting of your Owners Corporation transactions and, of course, Strata Management carries full professional indemnity insurance – for your protection. Furthermore, Strata Management Victoria ensure that each Owners Corporation has an independent bank account , not a pooled account, and any payments out of the owners corporation bank, has a 3 level authorisation process. Our CEO is a qualified CPA and brings a wealth of accounting practice and procedures into the business to protect your funds.
