Insurance - Who pays the excess?

Summary:

Your Strata Company insurance policy usually stipulates an excess when claims are made. The Strata Company is responsible for paying this excess from strata funds, unless there is by-law stating otherwise.  


More Information

If an owner wishes to make a claim under the strata insurance policy, they do not need the permission from the Council of Owners to proceed with submitting their claim.

When a claim is submitted, the insurance company will make a determination whether to accept the claim, based on the information that has been provided.

Higher excesses can sometimes be imposed on certain claim types - depending on what is detailed on the policy schedule. A common example is claims relating to roof leaks, which can attract a significantly higher excess where a large amount of previous claims exist.

If you need to submit a claim, please contact your Strata Manager who can help you further.


Property Lync - Owning, Living or Renting in a Strata Unit + Insurance

Owning Living orrenting in a strata unit.pdf


Example Case:

An owner in a complex in Fremantle submitted a claim because his tenant had burnt the kitchen work surface with a hot frying pan. 

As the kitchen was a fixed structure within the building, the work surface was covered by the building insurance policy. The claim paid for a new work surface and the strata company paid the $300 excess. 

In this example, there was some animosity as the other owners felt that the investor should have withheld the security deposit against damage caused by their tenant. At the very least, the tenant should have paid the excess, rather than all the owners. 

Due to the nature of strata insurance, they had to accept the outcome, as the policy is held by the Strata Company.