NIBA has announced the launch of a guide for at-risk communities, designed to help them better understand strata insurance.
The consumer guide aims to help strata committees and unit owners a better understanding of the sometimes complex coverage and gives brokers a way of providing accessible advice to those at risk.
Acting NIBA CEO, Linda Evans, said the guide is aimed at strata committees that are content to let their strata manager arrange insurance cover without seeking the professional advice of a broker.
“Strata insurance can be difficult to understand,” Evans said.
“It is important to realise that every strata building is different and strata insurance policies vary, so care needs to be taken to ensure that different risks are covered and that the sum insured is adequate for any losses.”
Evans stressed that advice is key when it comes to a coverage such as strata and hopes that the consumer guide can spur business for brokers across the country.
“Insurance companies selling strata cover direct to policyholders do not, as a rule, give advice on what products are appropriate for their needs.
“Without adequate cover, owners can receive a nasty shock if they make a substantial claim for damage to common property, only to find their insurance policy does not cover what they thought it did.”
“Brokers act on behalf of the policyholder. They can advise on whether the cover complies with state laws and they can advocate on behalf of the policyholder during the claims process,” Evans continued.
The guide can be accessed here.
Source: Insurance Business