2. CHU Australia Strata Schemes & Insurance Alan Ferré Alan Ferré State Manager

3. s99 Strata Titles Act  Reinstatement and replacement for all buildings on the common property.  Must provide for the reinstatement of the buildings and improvements to their condition when new.

4. BC Must Insure For

5. Or This….

7. Three Types Of Claims  Attritional  Single large  Catastrophe

8. s99 The Act cont..  Cover costs associated with reinstatement or replacement such as removal of debris, architect fees etc.  Body Corporate to pay excess and any shortfall.

9. Factors Impacting Claims Costs  Catastrophe Demand Surge.  Is the building heritage listed?  Council and other costs.  Loss of rent.  Any current, relevant council building restrictions?  Common area contents.  GST will have to be paid on material and labour.

10. Inflation  Allowance for increase in costs due to inflation: Policy purchased today for 12 months 1/8/2013. Total loss on last day of policy 31/7/2014. Building fully re-built 1/6/2015.

11. Costs – Site Clearance  Cost for site clearance

12. How Much Is Enough  A professional valuation is key  Consequences of under-insurance

13. s101 The Act  The Body Corporate must purchase Public Liability insurance, to a minimum level.  Regulation 3 states must be $5m.

14. Things To Consider Is that enough? 25 year old dived into pool - no depth indicators $6 Million Claim

15. Other Insurances Needed?  Lot contents  3 rd party liability inside the lot  Business interruption  Landlords insurance

16. Claims: Things to think about

17. Are we dealing with insured property under the policy?

18. Are we dealing with insured damage? CHU Cover = Accidental Damage; The loss must be fortuitous, unforeseen, not expected to occur.

19. 1) Maintenance related: Wear & tear/gradual deterioration. Main areas property losses are excluded:

20. 2) Error or deficiency in design. 3) Poor or faulty workmanship.

21. Main areas property losses are excluded: 4) Subsidence

22. Thank you for your time. Questions?