What you need to know
Navigating strata insurance can be complex for anyone, but understanding what best practice is in regard to insurance disclosure can both simplify the process, and contribute towards positive, informed outcomes for strata communities.
Strata Community Association (SCA) is proud to have officially released its ‘Strata Insurance Disclosure Best Practice Guide’, which sets out necessary and critical changes to how SCA members will be disclosing strata insurance practices to strata communities from 1 July 2024.
It is critical that all stakeholders, including consumers, understand the incoming changes, and what is being done to enhance transparency and choice for strata residents, both in Western Australia and across all jurisdictions.
Role of Strata Managers and Insurance Brokers
Firstly, its important to understand the role of strata managers in relation to strata insurance, and why they are being remunerated.
Strata managers bring valuable knowledge of both the insurance landscape and the specific buildings they manage, which benefits the strata committee and policy outcomes. With increasing legislative and regulatory requirements, the expertise of both strata managers and brokers is crucial, working in tandem to provide tailored insurance solutions.
Consumers in strata communities have the right to clear, concise information about their insurance policies and the remuneration involved. Therefore, by adhering to best practices in strata insurance disclosure, SCA aims to provide a transparent and informed experience for all strata communities in Australia.
Services provided by Strata Managers in the process of the placement of strata insurance include:
Quotation and procurement
Placement and renewal of insurance
Claims management
Record keeping
Correspondence and negotiation
Providing advice based on insurance knowledge
The main components of best practice strata insurance disclosure guide have been summarised into three steps:
Understanding the intricacies of strata insurance can be challenging, but with the right information and clear communication, strata committees can make decisions that benefit their communities.
SCA's commitment to best practice in strata insurance disclosure is designed to ensure that consumers have all the information they need to navigate their insurance options confidently.
Click here for more information and to view the SCA Strata Insurance Disclosure Best Practice Guide.
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