News

Expert advice vital in strata cover purchase

News >>

 

The National Insurance Brokers Association (NIBA) has cautioned strata unit owners and body corporate committees in North Queensland that buying insurance cover direct from an insurer without seeking expert advice may end up being false economy.

NIBA was responding to an announcement by one insurer that it would offer strata insurance direct to owners and body corporates of small unit complexes at a promised saving in premium.

NIBA CEO, Dallas Booth, said strata insurance is traditionally sold through brokers for a very good reason - the importance of expert advice.

"There are three key reasons for this. Firstly every strata building is different, and will have different risks and challenges which need to be taken into account when thinking about insurance; secondly, strata insurance policies all vary, and care needs to be taken to ensure the policy matches the needs of the strata block; and thirdly and most importantly, the amount of cover (the sum insured) needs to be adequate, or the strata owners will be exposed if a major loss occurs.

"As a general rule, insurance companies do not give advice to clients on what product is appropriate -- only licensed insurance brokers do this. And it is even more important to get advice when the market is difficult, which it has been for the past three years and continues to be in many areas of Australia," Mr Booth said.

The other key reason why insurance brokers played a vital role was when there was a claim. "In all cases the broker acts for the policyholder not the insurer. In the event of a claim the broker becomes the advocate for their client, and makes sure they get their full entitlements under the policy."

Mr Booth said there had been some very good initiatives by insurers to help strata owners in North Queensland to understand the risks their buildings faced and to reduce those risks. "But simply going for cheaper cover does not necessarily mean you are getting the cover you need when that major catastrophe happens.

Last changed: May 01 2015 at 4:05 PM

Comments

  1. None Found

Add Comment

Latest News

Will you lose the value of a Broker?

If you listen to the Podcast on this link you will here Robert Cooper explain to his Accountant why Small Business stands to lose if Insurance Brokers are not there to advise start up businesses and established businesses about the risks their occupation carries and how they can deal with them. Simply because they will not want to pay the fees that would be charged. Currently instead, Insurance Companies pay the Broker after the Insurance has been placed with them. Perhaps the premiums will appear a bit cheaper in the first year? Then they will question the fees an Insurance Broker puts on top and finds they can go to the Internet and obtain the same cover at the same price. However, they will not have the constant advice and claims advocacy that comes with an Insurance Broker. The big loser is definitely the Consumer as direct insurers give absolutely no advice, only price.

read more

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

read more