The Strata Schemes Management Act 2015 – requires various building insurances to be covered. The cost of the valuation is payable by the Owners Corporation or other persons with a vested estate in part of the building.
We recommend clients engage an insurance valuation every three years as a preferred risk management strategy.
Typically price movements in the building industry can vary dramatically from the headline inflation rate and under insurance is a real risk.
In assessing value we consider the current building / construction costs for contemporary replacement or reproduction of heritage structures where applicable. In addition we allow for other additional items where appropriate including demolition and removal of remaining debris, architectural, council and other general fees, and an allowance for inflationary price movements during the insured period.
In the event of a building’s demise it could reasonably be 1-2 years after the insurance policy date before contracts to reconstruct are executed. Consequently a reliable strata insurance valuation is critical to manage this risk.
We provide additional advice that includes an optional catastrophe insurance premium to reflect inflated building costs that may eventuate in this scenario. Furthermore, an estimate for alternate emergency accommodation during the demised and construction period is included.
Clisdells believe not having the right insurance assessment can be a costly exercise. An insurance policy is a mechanism to protect the things of great value we cannot otherwise afford.