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Bannermans Fire Safety Guidelines – Step 2

Posted 20 May 2024

Category: Aluminium Cladding, eBooks

An owners corporation is required by legislation to hold residential strata insurance. This insurance covers common property managed by the owners corporation including common areas, lifts, pools, car parks, gardens, wiring, balconies, walls, windows, ceilings and floors.

You would have found whilst obtaining your building strata insurance that many detailed disclosures were required. Like any other insurance policy, each strata insurer has different exclusions, policy terms and conditions and premiums. Some factors that contribute to premiums include:

  • The building’s age, condition, replacement cost and risk profile (e.g. cyclone-prone area, presence of non-compliant cladding);
  • Government taxes;
  • Previous claims history;
  • Commercial activities carried out on the premises (e.g. holiday letting);
  • Fee and commissions from agents;
  • Level of excess selected by the owners corporation; and
  • The costs of common property.

However, what are you in fact covered for in the event of a fire?

It is important for the owners corporation to:

  • Calculate how much it would cost to repair and rebuild in the event of a fire;
  • Calculate how much excess owners could afford to pay;
  • Investigate if the building’s cladding meets the minimum standards required by the Building Codes of Australia;
  • Ask their insurance broker for:
    • detailed advice regarding the insurance cover in the event of a fire;
    • any requirement for disclosing to your insurer that the building has cladding;
    • information about other options or policies.
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This is an extract from our Bannermans Aluminium Cladding Fire Safety Guidelines.

To access more guidelines on Aluminium Cladding fill in the below form to download our Bannermans Aluminium Cladding Fire Safety Guidelines for free.

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Bannermans Lawyers

Published 20 May 2024