The value of a strata manager during the claims process
Strata managers and brokers are under increasing pressure to demonstrate and communicate how their roles in arranging and administering strata insurance policies provide value and support owners. The claims process is one area where the collaboration between strata managers and brokers can truly demonstrate its strength.
Why strata claims can be complex
Multiple owners and high-value losses can often create complexity in the event of a claim.
It’s not uncommon for claim events to involve several policy issues, ambiguous language or unusual circumstances. Due to their intricate nature, more complex claims often involve an assessor appointed by the insurer and require input from specialists, such as building consultants, engineers, and other technical experts, who analyse the details of the claim and help develop a clear strategy for resolution.
The vital role of a strata manager during a claim
When it comes to making an insurance claim, a strata manager is usually the first point of contact for a strata scheme. A strata manager plays a crucial role in helping owners throughout the claims process.
A strata scheme will often outsource its functions, duties and powers associated with managing mandatory insurances to its strata manager. In carrying out this duty, a strata manager typically works with an insurance broker and can then be an advocate that’s independent of the insurer.
One of the critical elements in achieving a good claims outcome is a strata manager’s knowledge of a building and its relationship with the owners. A proactive strata manager, working together with its broker and the insurer, can potentially help save thousands of dollars in claim costs and reduce the settlement date by months.
These are some of the ways a strata manager is involved in the claims process.
- Initial damage assessment. Compiles information from owners and onsite managers to provide a complete picture of the damage to the broker or insurer, who can then take the correct steps to start the claim process. Without this information, claims can be delayed.
- Preparing information. A complex or large loss requires immediate action, so a strata manager often phones the claim through to the broker or insurer to ensure there’s no delay.
- Mitigating loss. Undertakes “make safe” work to ensure owners and the public aren’t at risk. This might involve emergency repairs to a door or roof, or hiring security to protect the property and its residents.
- Enabling access. Supports the broker and insurer with relevant contact information, enabling a loss adjuster or panel builder to inspect the damage quickly.
- Trusted relationships. Brokers and insurers rely on their relationships with strata managers to obtain and distribute information to owners. A strata manager is the first point of contact for owners and facilitates communication for faster claims outcomes.
When experience counts
Just as a strata manager has close knowledge of a building and its owners, a specialist broker develops expertise in strata insurance and advocates for successful strata claim outcomes.
BCB has been building relationships with strata managers, insurers, assessors, repairers and the strata community for almost 30 years. Our long-standing industry relationships provide us with unique insight into what insurers need to process claims efficiently and effectively.
Effectively managing complex claims requires a proactive and knowledgeable approach.
- Understanding the details. With in-depth knowledge of the circumstances surrounding the claim, including policy coverage, we ensure owners receive all the benefits the insurance policy allows for.
- Proactive communication. BCB obtains information from insurers and loss adjusters to regularly update strata managers and owners on the progress of a claim.
- Acting as an advocate. Acting on behalf of owners, we assess the circumstances of each claim and negotiate with loss adjusters and insurers to maximise policy entitlements. If we disagree with a decision, we’ll appeal it on behalf of owners.
The claims decision can be a challenging part of the process. It’s often more complicated than simply accepting or denying and may not always be what owners want to hear. A broker and strata manager can help explain the outcome and any settlement options to the strata scheme in plain English, enabling it to make informed decisions throughout the settlement process.
Let’s consider a real example
Some claims are quite straightforward, and a cash settlement or repair options can be quickly implemented. However, complex claims that involve multiple units or common property may take months or even years to resolve. This is where the value of a good strata manager and broker can shine through.
