Owners Corp and insurance issue

[Dbz_Vic]

Hey everyone, i have just been notified that an owner in our block of 3 units hasn't been paying their premium and because of that the policy is now outside their credit terms and they have to take action and cancel the policy. Where do i go from here in regards to insurance since i obviously can't insure my portion only. Has anyone else had similar experience and managed to still get some insurance cover for building and common property?

 

[Kate Ashmor]

To protect your own interests, best to arrange your own building and public liability insurance.

The member of the OC that is failing to pay their way can be ordered to by VCAT, as insurance is compulsory under the OC Act.

 

[Dbz_Vic]

To protect your own interests, best to arrange your own building and public liability insurance.

The member of the OC that is failing to pay their way can be ordered to by VCAT, as insurance is compulsory under the OC Act.

Thanks Kate, that's what I thought after reading consumer affairs website. Going to VCAT over it sounds like something I don't want to take on right now. Would just have to ring around and organise some sort of cover.

I heard that there has recently been some discussion about changing the legislation to stop things like that happening, does anyone know more about this? In my situation the premium is not even high, only a measly $380 per year each! I spend more than that on takeaway coffee!

 

[Paul@PFI]

Hey everyone, i have just been notified that an owner in our block of 3 units hasn't been paying their premium and because of that the policy is now outside their credit terms and they have to take action and cancel the policy. Where do i go from here in regards to insurance since i obviously can't insure my portion only. Has anyone else had similar experience and managed to still get some insurance cover for building and common property?

Many people take out their own policy as the OC policy will ONLY cover common property and it could lapse and you will be uninsured. It prob wont cover your building fixtures within your statum and your contents may not either. There may be different policy conditions, exclusions etc or a large excess. Have a chat with EBM or Terri Sheer about insurances for your properties and get some professional guidance. Show them the OC policy wording too so they can advise on risks. Then decide what to do.

 

[bbmick]

I assume this is a seperate villa type unit & maybe you don't have a OC manager.

I've come across this a few times myself & have 2 units in this situation.

I soon discovered that my usual insurance (EBM) wouldn't cover just the one unit out of the strata and neither would a few of the big guys.

I use RACV for the building only (comes with public liability inside unit) & a broker for the public liability for common areas.

RACV don't seem to have an issue with the building insurance - as long as it's a seperate dwelling and not something like part of a of block of flats.

I use EBM for Landlord insurance.

This however, does not solve the problem with common property insurance or sinking funds etc for future issues with common area issues like driveways etc.