Getting strata insurance is one way to meet the legal requirements of every Australian State. While you may settle for the cheapest insurance product, inadequate coverage may be a result.
Protecting the building and common property, body corporate, the building’s tenants, employees, and visitors incorporate overseeing a suitable strata insurance, one of the strata committee’s responsibilities.
To find an apt strata insurance cover, the committee may have to do some homework like talking to the Community Manager. Every building varies from size to the number of residents, identical to the level of cover required.
Based on that, the Manager should contact various insurance experts who will give different quotes for comparison.
A report from CHU, a specialist firm in strata insurance, states that insurance claims happen often. With vandalism, break-ins, floods, storms, fire damage, and legal disputes, CHU has served many, not hundreds but thousands.
If you are worried that the next doorstep could be yours, CHU adds that most of these issues are avoidable. To save you from those costly and common insurance claims, CHU has some tips below:
Leaks and water damage
Water damage is a frequent residential strata claim, taking up 45% of all disputes. From a burst pipe, overflowing water to roof damage, pointing out the source of leaks can be a challenge. But with state-of-the-art technology, locating the faulty pipe only needs minimal destruction.
Check the following for signs of water damage and flooding risk:
- On the collar of Flexi hoses, confirm the warranty expiry date. Also, check if they are intact on all communal and personal appliances requiring plumbing like washing machines, dishwashers, and water filters.
- The roof and gutters need regular cleaning and maintenance while watching for damaged tiles, barriers, or blockages.
- Do not overlook abnormally high water charges or changes in pressure. The walls could be hiding a leak, or the garden reticulation could be faulty.
- Examine the walls and ceilings for blisters, water stains, or marks.
- Do not leave a running tap unattended, especially when filling the sink or bath.
- Ensure you leave the house with the tap off if you will be out for long hours.
Extreme weather conditions (storms and floods)
The great weather in Australia is worth talking about. However, it can be very unpleasant at times. Weather events like storms account for 25% of claims yearly. Arming yourself for the stormy weather encompasses:
- Keeping any appliances and contents away from areas prone to flooding.
- Trimming overgrown trees and branches.
- Ensuring gutters and balconies are cleared regularly to drain rainwater.
During storms, keep up with the weather updates while affirming that the tenants and neighbours are prepared and safe from potential danger.
Accidental Damage
Ensure adequate maintenance, proper cleaning, tidying, and removal of obstructions in crowded areas to prevent accidents. Tending the garden is okay. Nevertheless, ensure you do not damage any infrastructural networks or reticulation as you dig in.
For assurance, contact Dial Before You Dig, a free referral service to prevent any potential damages or visit their website at www.1100.com.au. Always ensure you get professional help for maintenance and installations.
Legal Liability
Although uncommon, this type of claim is very costly. Whenever an accident occurs, and you are somewhat responsible, it should cover the cost for:
- Damage to individual property, including tradespeople, in common areas.
- Injury or death due to negligence or loss of earnings resulting from the injury.
- Wrongdoing including clerical mistakes or breaching duty by a building officer such as the Chairman, Secretary, or Treasurer.
To prevent costly legal claims, stay alert and watch out for likely safety hazards. Whenever your attention is needed, take action sooner to reduce the risks, and inform your Community Manager or committee member of any concerns.
Fire Damage
Having fire safety equipment is essential. But ensuring it is working correctly through regular maintenance is equally vital. Appliances also need servicing, and swift action should be taken whenever there is a wiring or power issue.
Common causes of residential fires include:
- Faulty wires or old appliances contribute to electrical and mechanical fires like dryers.
- Dirty dryers and washing machines with lint filters.
- Hotplates, fryers, and overheating pans result in most kitchen fires.
- Leaving candles or incense burners unattended.
- Cigarettes on the terraces, balconies, and even indoors.
Theft, vandalism, and malicious damage
Barbeque, garden, and gym items are prone to theft. It is because they are not stored in residential homes and are, therefore, easily accessible. Additionally, claims for broken windows, doors or new locks may result from the forceful entrance.
How to prevent break-ins
- Familiarise yourself with others in the building to quickly take note of strangers.
- Whenever you spot a new face, inquire to find out why there are in the property.
- Smart locks may come in handy for shared areas like the garage and gyms.
- Never leave doors propped open during deliveries or removals.
Additionally, CHU recommends installing security cameras, intercoms, and motion lights. While they may be overpriced, you will be grateful later. They also foster low insurance premiums.
Conclusion
Stick to the tips above to prevent wild and expensive insurance claims. For any query on your strata insurance, do not hesitate to speak with the appointed Community Manager.
