All insurance contracts have a duty of disclosure whereby the insured party must tell the insurer all relevant information before entering in to the policy and also during the course of the policy period.
Home warranty insurance remains one of the most complex liability products on the market to deal with due to the constant interplay with legislative reform, some of which is retrospective and some of it which is not. Please click here to view our PowerPoint that explores some of the relevant developments.
This fact sheet provides guidance in relation to the appointment by a strata managing agent of an insurance broker on behalf of one or more owners corporation clients. This assumes the following typical scenario:
You may have recently seen in the papers that building in Lidcombe where the roof blew off in January and the owners found themselves in the situation with a strata policy which covers storm damage but excludes poor design and construction. After initially appearing to be covered the claim was later denied.
Anecdotally, we understand that SiCorp trading as the Home Building Compensation Fund (HBCF), the insurer who administers and underwrites insurance under the HBCF (formerly known as Home Owners Warranty Insurance) has tightened controls on the issuing of that insurance.
The New South Wales Supreme Court recently confirmed that an insurer's right to subrogation and recovery under its policy arises from the conduct of particular parties in particular circumstances.
The recent deluge has provided a serious water resistance test for strata and other buildings. Many buildings have failed that test, with serious water penetration issues being identified and water damage being sustained. Some things for property owners to consider:
Regrettably, it is common for people to sustain injuries while on the common property of strata buildings and those injuries frequently lead to personal injury claims.
Unfortunately, people slipping (or tripping) and falling is a fairly common occurrence on common property of residential and commercial premises.
Home warranty insurers in NSW have paid out over $400 million since 2002. Premiums would have been only a fraction of that. It is a small wonder that private insurers want out, and that for the foreseeable future consumer protection for residential building defects will have to be provided by the state government through its public insurance arm SICorp.
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NORTH SYDNEY NSW 2060
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NORTH SYDNEY NSW 2059
T: (02) 9929 0226
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