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Australian Business Number. This is a number that all registered entities must hold to allow the charging of GST (Goods and Services Tax) on supplies and the ability to claim an input tax credit on GST paid as applicable. ABN is the identifier for dealings with the ATO (Australian Taxation Office) and for dealings with other government departments and agencies.

In the event of a claim, it is important to ensure the repairer or contractor that the body corporate or strata manager engages has an ABN (Australian Business Number) and that this ABN is clearly noted on invoices. Without an ABN, legislation prevents the insurer from being able to pay the repairer/contractor’s invoice in full and may prevent full reimbursement of the body corporate for their expenditure – the insurer must withhold 48.5% of the invoice amount where no ABN is provided. 

Accidental damage includes (but is not limited to) fire, lightening, explosion, storm, tempest, rainwater, earthquake, aircraft, riot, civil commotion, malicious damage, impact by vehicles, burglary, glass breakage, fusion, bursting/leaking/overflowing of water tanks and pipes.

Flex Insurances After Hours Emergency Hotline – 1800 022 444 – puts clients in touch with specialist repairers who can provide on-the-spot advice and or attend a property after hours.

Depending on how an air conditioner is installed, it is either part of the building or an owner’s fixture and should therefore be insured accordingly. If the air conditioning unit is placed through a window opening and plugged into a power point, it is considered as a ‘fitting’ and must therefore be included in the individual proprietor’s contents policy. If the power source is from the power board and the air ducts, then it is considered to be a fixture and part of the building. In essence, if the installation cannot be removed without causing damage to the building, it would be considered to form part of the building for insurance purposes.

One who investigates the cause and the circumstances of a loss and ascertains the amount of the loss, usually appointed by Flex or an insurer.

Awnings and pergolas are covered under the building policy. While accidental damage can occur to these, most commonly damage results from wear and tear through age. If wear and tear is the cause of damage, it is the responsibility of the body corporate/owners to repair damage. Note: these must be legal installations, comply with local council codes and have body corporate approval.

Damage to the building is covered – replace as was. However, be wary of upgraded security measures included doors/locks etc as the policy covers the replacement to an extent not better than which existed originally – it does not cover ‘upgrading’ of security measures. 

Include carpets within hallways and lobbies, pot plants, mirrors and other decoration within common areas. Also included are washing machines and dryers owned by the body corporate or owners corporation and used by all unit owners and housed in common laundries. Any barbeque equipment, gardening equipment and garden or indoor furniture owned by the body corporate or owners corporation should be insured as common area contents.

Calculated on the basis of the annual rentable value that would have been applied to a unit prior to loss or damage happening to a building resulting in the unit becoming uninhabitable.

The reasonable emergency accommodation costs necessarily incurred in the event of an admissible claim for loss or damage to the insured property, whereby the unit occupied by a unit owner for residential purposes becomes uninhabitable.

Fire claims should be immediately reported to Flex Insurance. A loss assessor is normally appointed to investigate, quantify and supervise replacement.

Insurers are required under legislation to make adjustments, known as 'decreasing adjustments' on claims settlements in circumstances where no input tax credit or only partial input tax credit has been claimed on the policy premium. Where full input tax credits are available on the premium, no decreasing adjustment applies. The decreasing adjustment method uses the taxable percentage of the insured to calculate the correct input tax entitlement. Legislation imposes a responsibility on the insured to provide insurers with the following information, which will allow them to accurately settle any claim:

1. the GST status of the insured, ie. is the insured registered for GST or not?
2. if the insured is registered, their ABN the percentage of input tax credits the insured is claiming, or is entitled to claim i.e. the insured’s taxable percentage.

Failure to accurately declare the extent to which an insured is taxable imposes a GST liability on the claim settlement. This liability is borne by the insured.

Loss of rent compensation is only available in the event of insured property under the policy being damaged by any cause not excluded whereby the damage renders a lot uninhabitable. A material damage claim must exist in the first instance. These situations usually require an assessor due to the extent of damage to the building – contact CHU. The benefit is usually paid directly to the lot owner and not the Body Corporate. The benefit is calculated on the annual rentable value of the lot affected, less expenses. The rentable value can be ascertained by way of either copies of Lease Agreements, where applicable, or liaising with local Real Estate Agents.

Temporary Accommodation – this cover is basically the same as the above cover however in this case the owner is living in the unit. An entitlement is based on the same criteria of the rentable value of the property as with the loss.

Emergency Accommodation – the policy responds to the reasonable emergency accommodation costs necessarily incurred in the event of an admissible claim for loss or damage to the insured property, whereby the unit occupied by a unit owner for residential purposes becomes uninhabitable.

Is loss of rent/rentable value cover additional to the sum insured on the building?
Yes. This benefit provides up to 15% of the building sum insured and is additional to replacement of the building itself.

Is any amount payable to tenant?
No. The policy only covers the owner. Any loss by the tenant should be claimed under their contents insurance.

This compensation is only available in the event of insured property under the policy being damaged by any cause not excluded whereby the damage renders a lot uninhabitable. A material damage claim must exist in the first instance. The benefit is calculated on the weekly rentable value of the lot effected. The rentable value can be ascertained by way of either copies of Lease Agreements, where applicable, or liaising with local Real Estate Agents.

Notify Flex Insurance of pending claim – retain damaged equipment for inspection.