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Posted 23 June 2010
Category: Home Owners Warranty
Clarification of excess for a common property HOW claim.
In recent cases in the Consumer, Trader and Tenancy Tribunal and then on appeal in the District Court, Vero Insurance Limited sought to argue that for each home owners warranty insurance claim made by an owners corporation for common property, an excess of $500 per lot applies, even though only one insurance claim is lodged.
In the District Court appeal decision of Vero Insurance Limited v The Owners of Strata Plan No. 69352  NSWDC 54, Vero were unsuccessful in their argument.
In our experience this was a widespread practice of Vero which we never admitted as correct and we expect that Vero is under considerable pressure to change its position previously asserted on a wide range of decisions.
Unless the matter is appealed further the position seems clear that Vero, in relation to certain polices of home owners warranty insurance, is not entitled to assert an excess of $500 per lot for a home owners warranty insurance claim for the common property.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.