Strata insurance and damaged timber floors

Strata insurance is governed by The NSW Strata Act in NSW. It doesn’t vary by that much. Generally the only things it doesn’t cover are internal paint, floor coverings, window coverings, dishwasher and your contents. It also covers third party property so they sometimes put through claims for these items if you ask “forcefully” and you were an innocent party.

 

@VB King do you know if the strata managers commissions are negotiable or if there is some way to reduce them? Is there another way to buy the insurance? The one I am looking at has brokers commission of $8k and strata manager commission of almost $17k in a quote of approx. $120k

 

Over 20@% in commissions on a significant amount. Not a bad lurk.

Absolutely negotiable.

You can ask when the managing agreement is signed. Expect them to say any commissions will be disclosed, but press them as to how much, as it’s too late after it’s disclosed.

You can also ask when your annual budget is prepared, often these are prepared by strata managers. How did they arrive at the budgeted insurance amount, does it include a commission? Etc.

Owners Corp can get their own quotes too. Nothing stopping Owners Corp going directly to the insurers.

 

The issue for strata may be noise proofing and what was part of the origimal plan .
Many people just rip up carpet in many apartments and replace it with tiles or wooden floorboard without realizing the implications for people living in an apartment below.
Part of the original soundproofing plan may have been excluding certain types of flooring .
I think it may form part of the original D.A.??.

 

Thank you @VB King. As you say not a bad lurk. It has happened as you said, commissions will be disclosed and annual budget prepared by strata manager. Their defence is the premium has increased $30k. The budgeted insurance was $97k not 120k.

 

Insurance premiums go up ... and sometimes down.

Whether they’ve gone up by 30K or not ... it doesn’t change the fact there is $25,000 in brokerage and commissions, that the owners all pay for.

Which has probably been done legitimately ... but it still sticks in my throat that these commissions can be excessive, and while disclosed (after the fact) are often buried in amongst pages of meeting notes & agenda many don’t read let alone attend the annual meeting.

 

It’s going to be to late this year insurance is due. There are a few unhappy people have noticed this one so hopefully we can have a better result next year.

 

Hi everyone,
The assessor has come and inspected the damage (basically pulled out the side skirting and few of the timbers in the process damaging them so I can't really reuse any of them )
But they emailed the following:

"With regards to the damaged flooring we have been advised the flooring does not comply with the strata by-laws in place. It appears the timber flooring has been glued down to the concrete slab with no mechanical fixing or accosting underlay present. The Assessor has asked the builder to provide a quote for the repairs, and consideration will be given to cash settle the damaged flooring as correction of the faulty install would not be claimable"

I'm not to clear what the last sentence means exactly- does this mean they will pay for the damage to the timber floors and side skirting but not the actual repair/install?
It is basically about 4 timber floorboards that have been affected. How much would I expect to get an contractor to fix it for? I rather have it fixed through my own builder (not the assessor's builder)

Also: according to NSW this is what i found:

The NSW strata law changes of late 2016 decreed that laying a timber floor was a “minor’ renovation, meaning you only needed the strata committee’s permission (rather than a by-law). However, permission could not be unreasonably refused but the owners corporation (body corporate) could set reasonable conditions." So don't know why they're saying it is against strata by law

Good news is they will pay for the rent in the meantime