The roles of all parties involved in arranging and administering strata insurance policies are not always well understood. When sudden loss or damage occurs, it’s in the claims process that the skills, experience, and collaboration between strata managers and insurance brokers truly demonstrate their value in supporting owners.
Why strata claims can be complex
Multiple owners and high-value losses can complicate a claim.
It’s not uncommon for single claim events to raise several policy issues, involve ambiguous language or arise from unusual circumstances. More complex claims often also involve an assessor appointed by the insurer and require input from specialists, such as building consultants, engineers, and other technical experts, who analyse the claim and help develop a clear strategy for resolution.
The vital role of a strata manager during a claim
Most strata schemes outsource their insurance responsibilities to a strata manager, who then typically works closely with an insurance broker. This usually makes the strata manager the first point of contact when a claim event occurs.
The knowledge of the building and established relationship with owners are key to achieving a good claims outcome. When a proactive strata manager works in partnership with the broker and insurer, it can help reduce costs and speed up the settlement process.
- Initial damage assessment. Compiles information from owners and onsite managers to provide a complete picture of the damage. This information is provided to the broker or insurer so the correct steps can be taken to initiate the claim. Without this information, claims can be delayed.
- Preparing information. A complex or large loss requires immediate action. A strata manager often reports the claim through to the broker or insurer to ensure there’s no delay.
- Mitigating loss. Undertakes “make safe” work to ensure owners and the public aren’t at risk. This might involve emergency repairs to a door or roof, or hiring security to protect the property and its residents.
- Enabling access. Supports the broker and insurer with relevant contact information, enabling a loss adjuster or panel builder to inspect the damage quickly.
- Trusted relationships. Brokers and insurers rely on their relationships with strata managers to obtain and share information with As the primary point of contact, the strata manager facilitates clear communication, helping to maintain confidence and achieve for faster, more effective claims outcomes.
When experience counts
Just as a strata manager brings detailed knowledge of a building and its owners, a specialist broker develops expertise in strata insurance and advocates for successful strata claim outcomes.
BCB has built trusted relationships with strata managers, insurers, assessors, repairers and the strata community over 30 years. These long-standing industry relationships provide us with unique insight into what insurers need to process claims efficiently and effectively.
- Understanding the details. With in-depth knowledge of the circumstances surrounding the claim, including policy coverage, we ensure owners receive all the benefits the insurance policy provides.
- Proactive communication. BCB obtains information from insurers and loss adjusters to regularly update strata managers and owners on the progress of a claim.
- Acting as an advocate. Acting on behalf of owners, BCB assess the circumstances of each claim and negotiate with loss adjusters and insurers to maximise policy entitlements. Where we do not agree with a claims decision, we advocate for owners by lodging and managing appeals to seek a fair outcome.
Claims decisions can be complex and may not always align with owners’ expectations. In this situation, a broker and strata manager can explain the outcome and any settlement options, helping the strata scheme make an informed and confident decision.
Let’s consider a real example
Some insurance claims are quite straightforward, and a cash settlement or repair options can be quickly implemented. However, complex claims that involve multiple units or common property may take months or even years to resolve. This is where the value of a good strata manager and broker can shine through.
Case study: Vehicle fire in a car park underneath multiple units
A vehicle explosion occurred in a mixed residential and commercial building, causing significant damage to the building and the livelihoods of residents.
The intensity of the fire resulted in widespread building services failure and contamination, including:
- Complete melting of plumbing, requiring full replacement.
- Total loss of electrical, sewerage and water supplies.
- Extensive soot damage to electrical equipment and throughout all units.
Given the severity of the damage, immediate “make-safe” work was required to stabilise the building, and protect occupants and the public. These urgent measures included:
- Installation of acro props applied to at the car park entrance to prevent building collapse.
- Temporary power and lighting.
- Installation of two temporary amenity blocks for commercial occupants to keep their businesses running.
- X-ray of the car park slab to assess heat-related failure.
- Toxic sewerage cleanup.
- Fire collars installed and operated as required.
An incident of this scale involved multiple third parties, including a Structural Engineer, a Hydraulic Engineer, Certifiers, Restorers, an Electrical/HVAC Engineer, and a Loss Adjuster.
Estimated loss value: $7 million
Number of actions: 900+ emails, phone calls and meetings (online and onsite)
The value of support and advocacy
Managing complex claims is a genuine team effort. Strata managers play a vital role, gathering and organising the information needed for brokers and insurers to progress claims efficiently, while their strong administrative processes help streamline resolution.
Experienced brokers, like BCB, build on this foundation by reviewing the claim outcomes, using deep knowledge of policy wordings – as well as relevant case law and legislation – to challenge insurer decisions when necessary.
To learn more about the Insurance claims process, contact BCB.
To discuss your property’s strata management needs or receive a FREE management proposal contact our friendly team.
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