Insurance for survey strata properties
CHU Community association Insurance plan for survey strata lot owners
A quick recap on a survey strata
Purchasing a lot within a survey strata scheme essentially means that you own a section of land and the building which sits on that block. Most survey strata schemes will have a driveway that all owners use to access their property. This is shown on your survey strata plan as CP (followed by a number). E.g. in the example below, there are 3 lots within this scheme, with the common property noted as CP4 (Shown in yellow below).
How is insurance handled on a survey strata plan?
As your property is a survey strata plan, the insurance needs to be set up differently to a standard (known as ‘built strata’). All owners share a common policy for insurance cover on the common property, and each owner is responsible for insurance on their lot (which will include your home and liability on your part lot area).
It is not mandatory that all owners insure under the ‘umbrella’ of the existing Strata policy through CHU, however, we would always recommend this for two main reasons:
1. In the event of a total loss (i.e. the common property and homes are destroyed), one insurer is responsible for all claims. This avoids a situation where multiple insurance companies are handling one event.
2. In the event of a claim affecting two homes adjacent to each other (i.e. major fire, water damage), one insurer is responsible.
We have found CHU’s policy to be comprehensive and premiums comparable to others on the market. That said, the decision ultimately rests with you on how you insure your home. Should you choose to insure elsewhere we would ask that you provide us with confirmation of cover so that the Strata Company has records of insurance for all owners.
How much is the premium through the Strata policy?
We can obtain a quote from CHU for you. We will need a figure from you as to the replacement value of your property. Bear in mind that replacement value is not market value, as this of course takes into account the land value.
The policy Product Disclosure Statement and Financial Services Guide are also provided by clicking on the following link:
https://www.chu.com.au/community-association/community-association-insurance/
How do we proceed and who handles my home policy?
Once you have your individual quotation, you will need to complete the included proposal form and return it to admin@abodestrata.com.au.
The policy would be arranged through SPI (WA) Pty Ltd ATF SPI Investment Trust T/A Abode Strata Management. We are an authorised agent of CHU Underwriting Agencies Pty Ltd who acts on behalf of the insurers QBE Insurance (Australia) Limited. Abode receives a commission with the above insurers upon insurance policy renewal, this commission is to compensate for claims handling, dealing with the insurer, negotiating the best outcome for the client with the insurer, allowing staff time to attend training, arranging new policies for clients, handling insurance payments and documentation.