Residential strata insurance is a general insurance that covers common property under the management of a strata title or body corporate entity. Owners of strata titles typically share the premium costs of strata insurance as part of their strata fees and liabilities.
The Strata Schemes Management Act 1996 requires that all strata properties are appropriately insured. In order to calculate the appropriate level of insurance cover, the Owners Corporation must, at least every five years, obtain a valuation of the building from a suitably qualified person.
Known as ‘building insurance valuation’ or ‘insurance replacement valuation’, this type of valuation requires a specialised knowledge of the relevant legislation and formal qualifications.
McLennan Steege Smith & Associates (McSSA) will determine the correct amount of insurance cover required for structures including residential dwellings, industrial/commercial buildings, and retail premises.
Beware of under-insuring
The numerous natural disasters that have occurred across Australia in recent years have exposed the fact that many buildings are under-insured and therefore the compensation amount provided by their insurance company is failing to cover current building replacement costs.
It has been found that in many cases, additional items such as removal of debris, cost escalations during the insurance period and accounts for professional and Council fees are being overlooked.
The McSSA valuers regularly carry out insurance valuations on both strata (owners corporation), and private residential properties for insurance purposes. We will assess all relevant factors and ensure that your insurance levels are consistent with current building costs.
We guarantee that our valuation will determine insurance cover that is adequate and current and will ensure that you are neither under-insured nor over-insured.
Our assessment will takes into consideration the size (m²) and nature of the improvements, current demolition and removal of debris, constructions costs, and any zoning changes. We will also take into account the costs for contemporary replacement or reproduction of heritage structures where applicable.
While the building is usually the main cost components, we also assess such factors as current building regulations and the cost of all work external to the building (such as paving, fences, pools and signage).
We are regularly updated with building costing guides and any variations of costings within the building industry.
While a valuation must be legally undertaken every five years, many of our clients engage us to do a valuation after three years as a preferred risk management strategy preventing under-insuring.
McLennan Steege Smith & Associates is proud of the fact that much of our business is built on repeat clients and referrals. We are trusted by our clients to accurately assess an insurance valuation in order to reduce the risk of financial and property loss.
Every one of our highly qualified team is a Certified Practicing Valuer and a member of the Australian Property Institute (API).
Expert and accurate valuations
We have the experience to confidently undertake insurance valuations on any type of property. Contact us now for an obligation-free quote.