4 things all strata owners should know about insurance valuations

4 Things all Strata Owners Should Know About Insurance Valuations

In Queensland, storm season is fast approaching. We have already had some previews as to how storm season may play out this summer. It is important that your building has an up to date insurance valuation and has sufficient cover in the event that your Body Corporate is required to make a claim due to the aftermath of storm season or any general insurance claim is required.

Property valuations can affect the price of commercial and residential strata insurance premiums, the currency of your insurance and the payout of total loss claims.

1. What are the benefits of an insurance valuation?

Everyone wants to protect their home and investments. A huge part of doing so is to ensure they are properly insured. Having up to date and accurate valuations of your building will ensure that in the event of a claim you will receive the correct payout. Having an up to date insurance valuation is the key to avoiding your building being under insured.

2. What happens if my buildings insurance valuation is out of date?

Failing to have an accurate and up to date insurance valuation can result in inflated premiums or insufficient cover in the event of a claim. Our experienced valuers will provide you with an accurate insurance valuation, giving you peace of mind that should you need to claim, your valuation won’t cause any issues.

3. Is a Building Insurance Valuation required by law?

In Queensland, the Body Corporate Management (Standard Module) Regulation 2008 states that a Body Corporate must insure for its buildings full replacement value.

It is important to ensure you have the correct Strata insurance for your building for two simple reasons. It is a requirement by law and in the event that your Body Corporate should need to claim, your building will be insured for the correct value. 

4. How often is a building insurance valuation required?

An independent valuation is required every 5 years. However, we suggest that you do this more frequently.

Insurance companies increase the building sum insured by 5% for every year that a valuation has not been conducted to allow for any increases in Consumer Price Index (CPI) and building construction costs. As a result, over five years the buildings’ replacement value can increase quite significantly, and in turn, the premiums are likely to increase as well.

We have witnessed many cases where Bodies Corporate have saved money on their premiums as a result of obtaining more frequent insurance valuations.

Don’t be part of the 15.2% of buildings that are non compliant for building insurance valuations. At Star BMS, our facility managers undertake a wide variety of tasks with the ultimate goal of securing your assets value. Click here to contact StarBMS today to protect the value of your investment today.

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