Body corporate managers urged to communicate safety risks of underinsured apartments & units
Apartment and unit owners in Brisbane are being encouraged to urgently review their insurance cover, after reports from the RACQ showing that over a third of Queensland homes are going without home and contents insurance.
Underinsured properties create major financial risks, especially in apartment and unit complexes, where damage to one can often mean damage to all.
The latest information indicates that 10% of Queensland households have no building insurance and 34.2% do not have home and contents cover, sparking concerns from one of Queensland’s strata property leaders, that there are thousands of “disasters waiting to happen”.
Ace Body Corporate Management (Ace) is the largest 100% Australian owned strata management company with over $20 billion worth of property around the country, and QLD State Manager Georgia Cook says owners need to be careful they don’t create multi-million dollar damage.
“If strata property owners in Brisbane aren’t careful, damage occurring in their apartment or unit could result in major financial losses for their entire community with only them to blame.”
“The types of damage that we’d see being a major threat to safety and owners’ back pockets would be things like fires and water leaks and both of these have the potential to affect every occupant in a community.”
Ms Cook says that whilst some body corporates can be as small as 2 lots, Ace also have involvement with high rise residential communities holding over 700 lots in total, so the scale that this issue can carry is truly alarming.
“Going on the most recent RACQ stats, if we apply the fact that over 1 in 3 properties don’t have adequate home and contents coverage, there are anywhere from 30, 40, 50, maybe even 70 lots in some of the biggest buildings that have the potential to be a catalyst for chaos.”
“In response, we’re calling on body corporates to get tough on owners without home and contents insurance, potentially orchestrating this financial chaos for apartment and unit complexes.”
“There must be communication from the body corporate regarding the risks that owners are taking if they forego insuring their property.”
Ms Cook says there is no doubt in her mind that many of the gambles being taken by property owners comes down to the rising cost of insurance in Queensland, and it’s time for politicians at a State and Federal level to help the issue and deliver some assistance to struggling owners.
“Since 2005, insurance premiums in Northern Australia have risen up to 300% for some regions and collectively as much as 80% in comparison with the rest of the country, and we are calling for relief to come quickly.”
“Prices are at the point now where many property owners need funding to properly insure their homes, and there is a grant still waiting to be delivered for North Queensland owners that would alleviate some of the statewide pressure.”
“$12.5 million was promised for property owners in North Queensland struggling to afford adequate insurance following repeated cyclone damage and it needs to be delivered before we face anything that exposes the current lack of home and contents cover, like the next cyclone season.”
Ms Cook says she hopes owners and political decision makers understand that with more and more people living in body corporate communities, it’s not just about protecting 1 household anymore, but all the other occupants within a community.
Ms Cook has encouraged body corporates in Brisbane to consult their local Ace representative to get advice on how to best manage their communities amid this trying situation.
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