Strata Insurance

CHU and Strata Unit Underwriters (SUU) provide legal defence cover for defending claims from third parties (like owners or contractors) in addition to the cover provided for legal expenses for the more usual categories of insurance covered by a strata policy.

 

Claims against the owners corporation

Up until recently lot owners routinely claimed for any loss of rent suffered by them, due to a breach by the owners corporation of section 62 of the Strata Schemes Management Act 1996 to maintain and repair the common property.

The Privacy Amendment (Enhancing Privacy Protection) Act 2012 and Privacy Regulation 2013 both commenced on 12 March 2014. They represent the most significant changes in the legislation since it was first introduced in 1988. They introduce new requirements, for both privacy policies and associated procedures.

 

Introduction

  1. The recovery of legal defence costs is something that is often overlooked because of the emphasis on dealing with the claim or defence rather than what happens afterwards. The right to recover costs arises when an insured (who is covered) wins its defence and the other party is ordered to pay its costs.

    It has become common for strata managing agents to receive commissions from insurers in relation to insurance business written on behalf of their owners corporation clients. In fact, most strata managing agents are operating on very tight margins and many are dependent on receipt of such commissions for their businesses to be viable.

     

    A common claim under owners corporation’s building insurance policies relates to losses arising from burst pipes.

     

    Usual uninsured losses

    Generally speaking losses from the following are not covered:

    Unfortunately, people slipping (or tripping) and falling is a fairly common occurrence on common property of residential and commercial premises.

    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.

     

    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:

     

    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.