Strata insurance can be tough to understand. It is important to keep in mind that every strata building/property is different and strata insurance policies change accordingly, so extra care needs to be taken to make sure that risks are covered and that the sum insured is sufficient to meet any losses.
Insurance companies selling strata cover, as a general rule, do not give advice to policyholders on what products are suitable for their needs. Expert advice from qualified insurance brokers would guarantee that a building had the correct insurance cover and that the premium represented value for money.
Without sufficient cover, property owners can receive a nasty shock if they make a large claim for damage to common property, only to find their insurance policy does not cover what they thought it did. In this regards, it is advisable to ask below mention questions to the insurance company or insurance broker.
Questions You Must Ask
1) What are the risks we as a client need to insure? Is it building damage, public liability, workers compensation, what?
2) Which insurers offer the best policies for our risks?
3) What is the appropriate level of cover? For example, does it cover professional fees such as for architects? or just removal of debris?
4) What is an appropriate excess? If we choose a higher excess will the Body Corporate have sufficient funds to cover that amount in the event of a major claim?
5) Which policy gives the best cover for the best price?
To get answer of these questions one must turn to MGA who have been leaders in the field of Body Corporate Insurance for over 25-years. They have access to exclusive in-house Residential and Commercial Strata products.