I live at a building with repeated water damage – what are the reasons for my building’s insurance excess rising? – Kathryn, VIC

The insurance excess may change anytime and it is negotiated using a number of factors, the one carrying the most weight being policy’s risk.

For example, insurers are sensitive to buildings with a repeated water damage, given the chance of ongoing issues. It’s common to see special water damage excesses applied to buildings where there is a history of damage. A series of water damage claims can indicate to insurers that pipes, membranes, roofs & gutters are starting to fail. The age of your building, quality of equipment used, installation work, fixes and maintenance schedule, are other factors taken into account while determining the insurance cover, premium and excess.

Here’s what you can do:

• You may consult with plumbers and roofers and get their opinion about the nature and severity of water damage
• If the claims are small, sometimes the owners corporation may pay for them – you can check if that is something your owners corporation can cover
• You may wish to get a copy of the insurance policy that your owners corporation has taken out on your property
• You may also request the owners corporation to put forth your questions to the insurance broker to get more clarity

Want to know more? Visit our website to know how building defects can affect the strata insurance costs, and what are the various factors that insurance providers take into account while evaluating a building’s qualification for insurance.