When a strata manager leaves or his strata company goes AWOL/broke, what can the strata owners do in regards to insuring their buildings?
Friend is in this unique situation and doesn't know what to do in regards to insuring her property. Does she get a building and contents insurance, instead of strata insurance since there's no strata company who can arrange the strata insurance?
I would be pretty concerned about what has happened to the money in the admin and sinking funds for the owners corporation.
I lived in a Strata and we elected to self manage.. there were only 6 units in the group, all but one owner occupied.
As above, the Building insurance should be registered in the name of the Strata Corporation, so no worries until it needs renewal.
Also as above, I would be seriously concerned about the sinking fund, not just whether your friend's strata will get their money back, but also whether the money is currently accessible!
The strata manager does not provide the insurance. They arrange the insurance with an insurer (typically via a broker) who has issued the policy. That policy will be in place until its expiry (typically 12 months). The main issue will be ensuring it is appropriately renewed, not to mention the other pressing matters others have mentioned.
Thanks for the feedback. She's thinking of getting a building insurance instead of strata insurance in the meantime, until she gets confirmation of what's the go with the Strata manager. Is this a good idea?
She's thinking of getting a building insurance instead…Is this a good idea?
I don't think you can buy 'building insurance' for an individual lot in a strata scheme. There's no product for this.
Even if the house is detached/stand alone and not a unit?
I'm pretty sure you can't.
You might be able to fudge your way through an online application, but it might be useless come claim time.
There is often shared property involved, so strata insurance is important. For example I live in a block of 3 units and each unit is responsible for a certain section of the driveway. If you take out a standard building policy and a sinkhole opens up in your driveway you won't be covered.
Best to get together with the other owners and work out what you can do to get a policy together.
The logical thing to do is to hold committee meeting first to assess the situation.
your trying to organize something that you know nothing about and dealing with millions of dollars worth of assets, talk to someone that deals with strata management, if your only a small block ring a real estate agency, they normally have strata management for a fee of course, at least it's a start.
You can't get single lot insurance. My place has no strata manager - contact a strata insurance broker to get all common property and buildings insured if you don't mind making sure everyone bpays there percentage of costs per year, or get a strata management company in
Hi there.
Insurance assessor (loss adjuster) here.
Is the previous policy still current? How many Lots in Strata?
If policy is still current you can just speak with Lot Owners in a committee meeting to ensure the contract is renewed.
Otherwise, no restrictions on sourcing own building and contents policy I see it often, dual insurance clause usually applies.
If you're friend is uncertain which insurer covered the risk previously, call around to a few of the major providers (CHU, QUS, Longitude, SCI, etc.)
PM me if you need further assistance, happy to help.
Cheers.
Presumably, the Strata company purchased an insurance policy on behalf of the committee - it should still be in place.
The Minutes of previous meeting should indicate the company and policy number - the owner of the policy should be able to request a copy of the document which may already have been tabled in a previous meeting.
Step 2 would be to engage a new manager.