2. Find an insurer who is willing to cover your building
“As an industry leader that’s been in this space for more than 40 years, CHU look to support the strata industry by offering insurance solutions wherever possible. If all strata insurance companies pulled out of the market and didn’t offer cover for buildings with cladding, you’d have the potential for a lot of uninsured buildings,” noted Mr Tchepak.
Mr Tchepak offered his sympathy towards owners who find themselves with cladding removal expenses.
“It’s a terrible position for unsuspecting owners to be in, having bought into their dream apartment and then being hit with the news their building has defective cladding and that they have to fund it. We would certainly support reform and legislative action across the country, with action similar to what the Victorian government has committed to being a step in the right direction.”
Following the Victorian Government’s $600 investment into cladding rectification, the New South Wales Government announced a $1 billion scheme to help owners fund their cladding rectification. A similar scheme could soon commence in Queensland.
For those entering the strata property market as apartment buyers, we recommend exercising due diligence and conducting a search of the building’s books and records to help you get informed about your product.
If the building does have cladding, discuss follow-up actions with your owners corporation and strata manager, and review your insurance policy with special focus on strata insurance cladding exclusions.