Latest Update: 26 April 2021

The CoM are continuing to explore our insurance options. In the meantime we have decreased the excesses for the buildings insurance policy back to last years levels: $20,000 for water damage claims and $5,000 for other claims.

Please be advised that if we continue with this policy through to its expiry on 1st February 2022 we will keep the excesses at these levels. We will provide you with a full report concerning our insurance options and the direction we propose to take in the next few weeks.

 

Previous Update: 13 April 2021

The CoM would like to provide the following progress report regarding the urgent review of our current Buildings Insurance policy.

We understand the recent changes to the excesses for water ($50K) and other damage ($20K) are of serious concern to many owners.

The newly appointed CoM has taken immediate action to investigate alternative options and would like to take this opportunity to share this information with you.

Review of Current Policy

We have asked our insurers if they would be prepared to renegotiate the policy and lower the current excesses. They have provided the following alternatives.

Option 1.

  • Deductibles = $5k AO / $20k WD – annual premium $267,810.64

 

Option 2.

  • Deductibles = $5k AO / $50k WD – annual premium $246,052.08

 

Option 3 – Our current policy

  • Deductibles = $20k AO / $50k WD – annual premium $227,557.31

Meeting with Industry Experts

The CoM met with an independent strata insurance expert on 13th April who was very informative. We are also pursuing discussions with other industry experts who will help us understand the details of our policy and alternative insurance options. We envisage this will take approx. 2 weeks.

Next Steps

Once we have a more complete picture of all alternative options, the CoM may then request your input by surveying lot owners on their preference moving forward.

What you can do now

Whilst we are working to find a better solution for Willsmere, we would like to provide the following guidance in relation   to insuring your own property.

Please ensure you have adequate current contents or landlord insurance (if you are renting out your property). You need to understand your level of coverage and relevant inclusions and exclusions. An insurance broker can help to ensure you are fully covered and search for policies and pricing that best suit your needs. You may also wish to explore options for taking out your own building insurance on your townhouse or apartment. Some companies will allow you to do so, even though your property is insured in a strata facility. Some Willsmere property owners have already taken out such policies.

Please also investigate as to whether you may have a potential risk of water damage in your property. Check your pipes (particularly if you have flexi hoses) and have them replaced if they old or of inferior manufacture. Some such hoses only have 5 year warranties (refer to https://www.smh.com.au/business/consumer-affairs/flexible-braided-pipes-responsible-for-more-than-20-per-cent-of-water-damage-claims-20170503-gvy8l0.html). Also, check and get your gas/hydronic heating (original ducted/gas heating) serviced on an annual basis, or have it capped if it is not in use.

We all need to be vigilant in ensuring our properties are well maintained and do our best to minimise risk.

More updates to follow from the CoM  as soon as we have a complete picture of our options and a clear pathway ahead.

Location

Willsmere is located at Wiltshire Drive (access via Yarra Boulevard), Kew VIC 3101