Move to allay Strata title owners' concerns about insurance

6/6/96

Strata title owners have been guaranteed their current individual insurance policy will cover them for structural damage and liability even though the law requires a joint policy, the Insurance Council of Australia (ICA) and Lands Minister Graham Kierath said.

Members of the ICA and Mr Kierath have moved to allay fears strata title owners have raised on insurance matters that they may be inadequately covered.

"All existing policies will be honoured and when they come up for renewal a joint policy for all the members of the strata plan will have to be made," Mr Kierath said.

ICA group manager Daryl Cameron also said his members had agreed to consider waiving the usual 10-15 per cent administration fee on the rebate for strata title owners changing to a joint policy.

Mr Cameron said some insurance firms not accredited to issue workers' compensation insurance would act as agencies for companies that could, so that strata title owners could continue to insure with their preferred insurer.

Mr Kierath said banks had come on board by recognising that a whole-of-strata insurance policy was adequate protection for their mortgage interests.

"I will also be raising concerns brought up over defence service homes insurance with Federal Defence Minister Ian MacLachlan," he said.

Mr Cameron said the insurance industry would look at sending all strata title owners information at renewal time to ensure all strata title holders were aware when their common policy was due.

"What these changes mean is that strata title owners need have no fear they are not fully insured and will allow time to examine ways of simplifying the strata title system to overcome anomalies," Mr Kierath said.

These included looking at easing the single insurance requirement for duplexes, triplexes and quadruplexes.

Media contact: Steve Manchee 481 2133 or Daryl Cameron 322 6044