Residential Strata Insurance: How to reduce your premium without reducing your cover
It’s compulsory in Australia to have Residential Strata Insurance - so it’s not a cost you can avoid, or something you want to skimp on. However there are some simple changes you can make to your property, and your policy, to help reduce your premium without impacting your cover. So you can be confident you’re getting a great price for you and your Owners Corporation/Body Corporate, without having to compromise on the level of insurance.
Here’s some extra measures you can take to help lower your premium, whether you’re taking out a new policy, or it’s time to renew.
Get a competitive quote
Once you have your quote, don’t be afraid to shop around and compare the cover with other insurers in the market. Although it’s always tempting to take the cheapest option, you should also compare the level of cover and sum insured, as well as the Insurer’s track record for service. When it comes to making a claim, the speed and knowledge of a specialist provider might make the whole experience much smoother for you and your residents.
Choose a higher excess
When you make a claim against your policy, you’ll often pay an excess - this is a ‘contribution’ payment towards your claim. When you take out or renew your policy you can choose to contribute a higher amount, which usually lowers the annual cost of your premium.
Introduce some new safety and security features
Keeping your property and your residents safe is always the top priority. But having a safe and secure property will also help to reduce your risk of having to make a claim, so it can help to lower your insurance cost. Here’s some key areas to check or invest in:
Provide fire extinguishers (and make sure they’re checked regularly!)
As well as saving lives, having fire safety equipment in your building might also save you from a big insurance claim. Making sure fire extinguishers, blankets and smoke detectors are installed and in working order will help to lower your premium.
Install window and door locks
Making sure doors and windows are secure will not only help to minimise the risk of a break-in, but also keep your residents safe. In some states, like NSW, window locks are actually a legal requirement for strata buildings with windows 2 metres above the ground. Don’t forget to secure other external entrances like garage doors, patios and garden gates too.
Upgrade or install a new security system
As well as extra locks, you could consider installing security cameras or lights. Sometimes just knowing they're installed will deter trespassers or burglars. You could provide intercoms for residents, so they can see who’s at the door before deciding whether to let them enter the building.
As well as the added security, you’ll also have additional evidence for your claim if you’ve caught it on camera - and you might even help the police to catch the culprits!
Get ahead of potential building defects
Sometimes it’s the smallest things that can make the biggest impact. Mould spots, cracks, slow draining water - it can be easy to ignore or worry about later. But proactively fixing these smaller issues will stop them from potentially escalating into bigger structural problems which could require a claim. This will also prove to your Property Valuer or Insurer that you’re dedicated to maintaining the building to a high standard.
Specialist Residential Strata cover from Flex Insurance
Because we’re Australian strata insurance specialists we can tailor your policy to suit you and your building. Get a free quote from Flex Insurance today and see how much you could save.