CHU is pleased to announce the release of an Insurance Solution for strata buildings impacted by the presence of Aluminium Composite Panels (ACP).
“CHU is committed to supporting the Strata Industry and has worked closely with QBE (our security provider) to deliver a sound solution to the ACP issues facing our industry. “Excluding” the risk and leaving the Owners Corporation exposed or refusing to insure buildings with ACP is not a viable solution to this issue. We feel we have an obligation to the strata industry to deliver a workable solution to maintain the insurance protection of strata schemes” commented Peter Jones, Head of Underwriting for CHU.
Buildings with ACP installed will attract additional insurance premiums and potentially have increased excesses for cladding. This is due to the significant increase in the potential risk ACP presents. However, CHU remains committed to work with our industry partners to find ways to minimise the impacts of additional premiums and excesses.
What do Strata Managers and/or Brokers need to do?
Strata Managers and Brokers should conduct a review of their properties within their portfolios as soon as possible, with priority given to those policies now approaching renewal. We would suggest they commence this review early to allow a full assessment and allow time for further investigation or in some cases, a site survey – at least 8-12 weeks prior to renewal.
To assist with our assessment of the increased risk due to ACP, we ask that the Owners Corporation (or their Strata Manager / Broker) provide the following:
CHU will then assess the risk factors of the building and determine our insurance response.
We do appreciate it may be difficult to establish the existence of ACP. We suggest contact be made (where possible) with the Building Designers, Certifiers, Fire Engineers, Builders, Suppliers, and other parties involved in the construction, certification and building approval process. This may include local authorities where relevant.
“As the market leader, we will be looking to provide insurance in as many instances as possible to support the strata sector” says Peter.
If there are any queries relating to ACP or about an individual risk, please contact your CHU Regional office
CHU Underwriting Agencies Pty Ltd