Strata insurance plays a crucial role in safeguarding the interests of property owners within a shared building or complex. As the complexities of property ownership increase, so do the challenges faced by owners and strata managers in ensuring adequate insurance coverage. In this blog, we delve into some of the biggest concerns that owners and strata managers encounter regarding strata insurance and explore how Sedgwick is actively addressing these concerns to support the strata community.
The rising cost of strata insurance
One of the primary concerns for owners and strata managers is the rising cost of strata insurance. In recent years, the insurance landscape has undergone significant changes, leading to increased premiums and, in some cases, reduced coverage or no coverage. The challenge lies in finding comprehensive insurance solutions that are both cost-effective and provide adequate protection for the diverse needs of a strata community. Sedgwick understands this challenge and works closely with strata managers to identify tailored insurance options that strike the right balance between coverage and affordability.
The complex nature of strata insurance
Another pressing issue is the complexity of strata insurance policies. Owners and strata managers often grapple with the intricacies of these policies, which can be filled with jargon and technical terms. Understanding the scope of coverage, exclusions, and limitations is crucial for making informed decisions. We simplify the process by providing clear and concise information, guiding owners and strata managers through the claims management process and ensuring they understand policy applications and the underlying decisions relating to policy response. This transparency fosters trust and empowers the strata community to make informed choices regarding their insurance needs.
The unfortunate rise in underinsurance
The risk of underinsurance is a persistent concern in the strata community. Owners and strata managers need to understand the value of their property to ensure it is adequately insured for the correct value. Although it isn’t the owners and strata managers who determine the value, they can decide how much to insure their property for based on the recommendation and valuation of a qualified and reputable expert. Underinsurance occurs when the valuation of the property is incorrect and is lower than its actual market value leading to inadequate coverage in the event of a claim. We address this issue by conducting thorough property valuations and risk assessments. By accurately assessing the replacement cost of buildings and common areas, we help ensure that strata communities are adequately insured, mitigating the risk of financial loss in the event of a covered incident.
Navigating policy and regulatory changes
Strata communities are also grappling with the challenge of navigating the evolving regulatory landscape. Changes in legislation and insurance regulations can have a significant impact on strata insurance requirements. Owners and strata managers may find it challenging to stay abreast of these changes and ensure compliance. We remain proactive in monitoring regulatory developments, providing timely updates, and guiding strata communities through any necessary adjustments to their insurance policies. This proactive approach ensures that strata communities remain in compliance with the latest legal requirements.
The looming threat of natural disasters
Natural disasters and climate-related events pose a heightened risk to buildings and structures, making resilience a top priority. Owners and strata managers are increasingly concerned about the potential impact of extreme weather events on the properties they own or manage, which is why we collaborate with strata communities to implement risk mitigation strategies, such as property retrofitting and disaster preparedness plans. By taking a proactive stance on risk management, we help ensure strata communities enhance their resilience to potential hazards.
The claims process can be a source of anxiety for owners and strata managers. In the aftermath of an incident, the timely and efficient processing of insurance claims is crucial for restoring normalcy. We pride ourselves on our streamlined claims management processes, leveraging technology to expedite the assessment and settlement of claims along with minimising the disruption for strata communities, allowing them to recover and rebuild promptly.
In addition to these concerns, the strata community often faces challenges related to building maintenance and repairs. We recognise the importance of preventive measures in reducing the frequency and severity of claims and by partnering with strata communities to implement robust maintenance programs, we help enhance the longevity and durability of buildings, ultimately reducing the risk profile for insurers.
Our support to the strata community
Our commitment to the strata community extends beyond insurance services. We actively engage in educational initiatives, providing resources and training to strata managers and owners. By fostering a culture of awareness and preparedness, we empower the strata community to navigate the complexities of property ownership with confidence.
Strata insurance is a critical component of protecting the interests of owners and strata managers in shared properties. Sedgwick addresses the biggest concerns of the strata community by offering tailored insurance solutions, simplifying policy complexities, preventing underinsurance, staying abreast of regulatory changes, enhancing resilience to natural disasters, streamlining the claims process, and supporting proactive building maintenance. Through its comprehensive approach, we play a pivotal role in helping the strata community navigate their building concerns, fostering a secure and resilient environment for property owners.
Learn more > explore how Sedgwick is helping the strata community navigate their building concerns here.