It has been almost a year since the Victorian Parliament passed the Owners Corporations and other Acts Amendment 2021. On December 1, 2021, eleven amendments came into effect, which were designed to enhance the governance of, and liveability of buildings overseen by Owners Corporations (OC). These changes are important for property developers, OC managers and those who own a property covered by an OC. This article outlines what the changes mean for Public Liability (PL) insurance policies and the next steps for those impacted.
WHAT HAS CHANGED AND WHY?
One key change is the new minimum requirement for PL insurance. PL insurance is designed to protect the Owners Corporations’ legal liability in the event that a third party becomes injured, or their property is damaged within the vicinity of common areas of the Owners Corporations. A common PL claim within the strata space includes slip and fall claims e.g., a third party slips and falls on a cracked step causing them to break a limb. The PL policy is designed to protect the interests of the Owners Corporation, which can include cover for compensation to a third party (medical bills, and/or compensation for loss of income as a result of time off work to recover from the injury), or legal fees to defend a claim.
We have reached out to our specialist strata insurer partners to understand their positions on the rollout of the mandatory regulations of the Owners Corporation and other Act Amendment 2021. Currently, insurers hold different positions as to how they will enact the mandatory increase to the minimum PL cover held and the impact on premiums and coverage. Therefore, please contact us and we can inform you about your insurer’s position.
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Honan Insurance Group Pty Ltd (Australian Financial Services Licence no. 246749, ABN67 005 372 396) is an insurance broker acting as agent for insureds and intending insureds. Honan is not an insurer. The information on this website has been prepared without taking into account your objectives, financial situation or needs. Any advice provided on this website is general advice only. Before making a decision to purchase an insurance policy, please read the relevant Product Disclosure Statement to make sure the policy is right for you. Insurance cover is subject to policy terms and conditions including policy limits and exclusions.
From time to time, Honan may act under a binder arrangement with an insurer. When this happens, Honan is authorised by the insurer to issue certain insurance policies on the insurer’s behalf. When Honan does this it acts as the agent for the insurer and not for any insured person. We will let you know when we are acting under a binder. You can view the Product Disclosure Statements for the insurance policies we issue under a binder arrangement here. A copy of the Target Market Determination for each policy is also available on this website.
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