SUU for strata insurance rather than CHU

[TPI]

Hi there,

For strata insurance for units/apartments/villas does anyone have any experience with SUU (Strata Insurance Underwriters)?

The owners corporation in one of my units is reviewing this and the comparable premium for SUU is much cheaper and seems to offer very similar coverage.

CHU seems to be the most widely used insurer, though it may possibly also pay the greater commission to owners corporation managers and insurance brokers - I'm not too sure about this though.

Thanks.

 

[brettc]

Hi there,

For strata insurance for units/apartments/villas does anyone have any experience with SUU (Strata Insurance Underwriters)?

The owners corporation in one of my units is reviewing this and the comparable premium for SUU is much cheaper and seems to offer very similar coverage.

CHU seems to be the most widely used insurer, though it may possibly also pay the greater commission to owners corporation managers and insurance brokers - I'm not too sure about this though.

Thanks.

I will pass the question on to one of our specialists in Strata Insurance if you like and let you know if there is anything to watch out for.

 

[brettc]

Hi there,

For strata insurance for units/apartments/villas does anyone have any experience with SUU (Strata Insurance Underwriters)?

The owners corporation in one of my units is reviewing this and the comparable premium for SUU is much cheaper and seems to offer very similar coverage.

CHU seems to be the most widely used insurer, though it may possibly also pay the greater commission to owners corporation managers and insurance brokers - I'm not too sure about this though.

Thanks.

I got an opinion from a specialist. He said that in his opinion it is almost identical cover as nearly all strata insurers are, and in his opinion SUU are in fact the more widely used these days.

The only significant difference he sees in the covers would be CHU now do flood whereas SUU do not.

Obviously this is general advice and would need it looked at more closely for the property specifically to give proper advice.

I hope that helps.

 

[TPI]

I got an opinion from a specialist. He said that in his opinion it is almost identical cover as nearly all strata insurers are, and in his opinion SUU are in fact the more widely used these days.

The only significant difference he sees in the covers would be CHU now do flood whereas SUU do not.

Obviously this is general advice and would need it looked at more closely for the property specifically to give proper advice.

I hope that helps.

Thanks brettc,

Yes I reviewed both the CHU and SUU policies a few days ago, and they are very similar. SUU has inflation adjustment and covers floating floors too. CHU had a few other benefits, though these were not relevant under Vic strata legislation, and another that was relevant to apartment blocks rather than villa units as in our block. There are some other differences in some of the policy wording and sub-limits (which is not easy to read/understand), though we formed the view that they weren't significant for us (but do your own research on this).

The difference in premium though was significant, ie. $6000 pa as opposed to $9000 pa!

So this is certainly one area where owners corporations/body corporates can reduce their annual strata fees.

 

[TPI]

I got an opinion from a specialist. He said that in his opinion it is almost identical cover as nearly all strata insurers are, and in his opinion SUU are in fact the more widely used these days.

The only significant difference he sees in the covers would be CHU now do flood whereas SUU do not.

Obviously this is general advice and would need it looked at more closely for the property specifically to give proper advice.

I hope that helps.

Also, just wondering if you know if this insurance specialist gets a commission or policy fee for SUU that is higher than CHU?

ie. Is there more financial incentive for insurance brokers to recommend SUU rather than CHU?

 

[brettc]

Also, just wondering if you know if this insurance specialist gets a commission or policy fee for SUU that is higher than CHU?

ie. Is there more financial incentive for insurance brokers to recommend SUU rather than CHU?

It would be most likely that they would be receiving the same commission percentage whether it be CHU or SUU, therefore they would earn less on the $6,000 SUU premium than they would on the $9,000 CHU premium. Unless of course for any broker fees that may be added but these would be clearly disclosed (if obtained through an insurance broker).

That said, how have the quotes been obtained, is one via the Body Corporate Managers and the other via an insurance broker for example? Or have they both been obtained through the same source?

 

[TPI]

It would be most likely that they would be receiving the same commission percentage whether it be CHU or SUU, therefore they would earn less on the $6,000 SUU premium than they would on the $9,000 CHU premium. Unless of course for any broker fees that may be added but these would be clearly disclosed (if obtained through an insurance broker).

That said, how have the quotes been obtained, is one via the Body Corporate Managers and the other via an insurance broker for example? Or have they both been obtained through the same source?

The body corporate manager engaged an insurance broker to get quotes from the different insurers, at the committee's request.

I've asked the body corporate manager what commission they receive for CHU and SUU but they just gave me a generic document in reply which doesn't specify exactly what this is.

And was told that the insurance broker receives some sort of broker policy fee.

 

[brettc]

The body corporate manager engaged an insurance broker to get quotes from the different insurers, at the committee's request.

I've asked the body corporate manager what commission they receive for CHU and SUU but they just gave me a generic document in reply which doesn't specify exactly what this is.

And was told that the insurance broker receives some sort of broker policy fee.

The only thing I can suggest is that you ask for the exact details as to who is receiving what by way of commissions and fees, include whether the Body Corporate Managers are receiving commissions. You are legally entitled to know but unfortunately some Body Corporate Managers tend to be a little tight-lipped about it.

The way the agreement is set up may or may not have an effect on the overall premium you pay.

As a general rule, we deal directly with Body Corporate's ourselves as we don't normally pay the Body Corporate Managers a fee.

 

[Ace in the Hole]

For 6 townhouses in Bris a couple months ago SUU was $2,900 and CHU was $2,450.
Equivalent cover far as I know, broker investigated it for me.

 

[TPI]

They certainly are tight-lipped, sent an email to ask for more detail a few days ago and am still waiting on a reply.

 

[brettc]

They certainly are tight-lipped, sent an email to ask for more detail a few days ago and am still waiting on a reply.

I would be very interested in the reply.