FAQ-COVID-19 INSURANCE- Gold Key Strata Title Managers

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Source: Matthew Dawson- Director Direct Insurance Brokers Pty Ltd - 3rd April 2020

Most of the Strata Title Community enquiries are surrounding LOSS OF RENT-

Query 1 – Does my Insurance cover COVID-19 claims?

A: The response from  CHU regarding their residential policy, and their stance on insurance. This is the same advice we have received from all underwriters. 

In summary, unless the police or local authority closed down an individual unit, or block of units at a body corporate complex due to COVID-19, you couldn’t claim on the policy for loss of rent.

There would have to be an outbreak onsite for the policy to respond, and the basic excess (generally $500) would apply.

Query 2 – Can I claim for loss of rent if my tenant loses their job and stops paying?

A: No. Body corporate insurance is not meant to cover RENT DEFAULT by individual tenants, whether this is domestic or commercial in nature.

You should speak with your landlords insurer about this, as you may have cover under that policy. 

Now in regards to insurance renewals, and committee’s that may struggle to pay the premium.

We now have arrangements with three (3) different premium funding companies that can organise monthly payments for the body corporate.

Our office can arrange all the paperwork, and obtain quotes from each, to make sure the interest rate is as low as possible.

For any owners wanting more information about COVID-19 and what government can do to assist, please visit their website - https://www.business.qld.gov.au.

However if it’s insurance related, please directly contact our office, as we are 100% operational and ready to handle their enquiries. Email: www.directinsurance.com.au or contact your Strata Title Managers - Gold Key Body Corporate Management for further assistance.