Strata Insurance

[Lotana]

I am a first time secretary of a strata plan in a 55-unit sydney building. I received a letter from strata manager to authorise renewal of the strata insurance policy. They disclose that they receive a commission from the insurance broker.

The letter from the insurance broker has 3 quotes with the total ranging from $14K to $15K. The strata manager commission ranges from $1.3K to $1.6K included in the total. The broker fee is $600 also included in the total.

1. It seems a bit odd that the strata manager is getting a kickback. Is it a normal practice?

2. I would like to get an alternative quote from another broker. Could anyone recommend a good one?

Regards,
Lotana

 

[RPI]

Hi
Not sure about the kickbacks but I use Elders Insurance for my strata and landlords

Darryl

 

[iLuxo Jr]

A commission paid by an insurer to the strata manager while legal is not kosher.

Take a look at other large bills in future too and, when there's something large to be done, get some independent quotes and compare with what the strata manager proposes or has charged in the past.

If they seem in order, fine.

If there is a consistent and significant disparity it's quite likely there are other kickbacks going on that are not being disclosed and its time to find a new strata manager.

We found a huge and consistent pattern with one strata manager - and reduced the levies by 50% by switching to another.

Also the executive can make big savings by being prepared to get involved and manage most of the things themselves, if a few of you are prepared to and have the time.