How to make an Insurance Claim for Contents Damage

What are you insured against?

Body Corporate holds an Insurance Policy which covers Owners for accidental damage caused to specific property within their Lot by an “event”.

Specific Property covered:

  1. Fixtures and Fittings in place when the Lot was first handed over.
  2. Replacement fixtures and fittings that have been advised to the Insurers.
  3. Wall and ceiling decorations e.g. wallpaper.

Specific property not covered by this Policy:

  1. Carpets
  2. Floating Floors
  3. Personal furniture and possessions.

What to do when an “event” happens

  1. If possible, prevent any further damage e.g. turn off water/electricity.
  2. Immediately notify the Building Manager and provide outline details of event and damage.
  3. Building Manager will notify Committee and Body Corporate Managers who will, in turn, notify TRG’s Insurance Broker.
  4. Thereafter the process will be controlled by the Insurance Broker in accordance the Insurer’s requirements.

How will the damage be repaired?

  1. Insurers may appoint an Assessor to inspect the damage, recommend repairs and quantify costs (plus allocate costs if another Lot is involved).
  2. Insurers will then instruct an approved Repair Company to carry out the work.
  3. Lot Owners may use their preferred Repair Company but the Insurers will only reimburse up to the value amount determined by the Assessor.
  4. If a Lot Owner decides to carry out other works in addition to the repair works then their preferred Repair Company must identify the repair work separately on their invoice or invoices.
  5. Lot Owner will need to pay their preferred Repair Company then process a claim with the Insurers.
  6. In the latter case, the Insurers will only pay up to the amount determined by the Assessor.

NOTE: Insurers will pay the settlement amount to the Body Corporate who will then distribute those monies to Owners in the amounts quantified by the Assessor.

Insurance Policy Excess – who pays?

  1. Insurance Policies generally include a “Policy Excess” to deter minor claims.
  2. “Policy Excess” amount is stated in the Policy and deducted from each and every Claim.
  3. For example, if the total amount claimed is $5,000 and the Policy Excess is $1,000 then the Claimant will receive $4,000.
  4. Lot Owner will be liable to pay any Policy Excess.
  5. The Policy Excess will be deducted from the settlement amount.
  6. If there is more than one Owner involved in the claim then the Policy Excess will be deducted from the first settlement amount paid should the Owners submit claims at different times. Body Corporate will then divided equally between those Owners.
  7. TRG’s Policy Excess is currently $10,000. [Updated 2021]