Fergusons Insurance Brokers

39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

Owners Corporation

Special features of Owners Corporation Insurance policies.

Besides covering the building and liability insurance needs of Owners Corporations, these policies have several additional features. Some are automatically included by insurers and others are available on request.

Loss of rent and temporary accommodation usually provides cover up to 15% of the building sum insured . For example if the building sum insured is $2m then these benefits are provided to $300,000. It provides cover for temporary accommodation of equal standard whilst repairs are being done if the owner is the occupier of the unit. Or if the owner is an investor or landlord it provides cover for loss of rent whilst the unit is unable to be occupied.

Common area contents. Cover for contents that are in common areas that are owned by the Owners Corporation or unit owners.

Fidelity Guarantee. Provides cover for fraudulent misappropriation of funds by office bearers in the Owners Corporation .

Office Bearers Legal Liability. Provides cover for claims bought against the Secretary of the Owners Corporation including defence costs where it is alleged they have provided inappropriate advice to the owners. For instance arranging insurance with inadequate sums insured and having not consulted with the owners.

Catastrophe Cover. Provides an additional limit (usually 15% of the Building sum insured) in the event the Insurance council of Australia declares a catastrophic event. When it happens rebuilding costs can go up due to inadequate building resources.

Examples of that would be the Queensland Floods of 2011 where there total insurance cost was estimated at $2.38 Billion and the Black Saturday bushfires in February 2009 where the costs was estimated at $1.3 Billion.

Policies also provide cover for Government Audit costs whereby the policy can fund the reasonable expenses incurred if you are selected for an audit. Plus cover is available for defence and appeal expenses. Common area property health and safety breaches is a possible scenario.

For further information or a quote for your Owners Corporation please contact Fergusons Insurance Brokers