LIFT-OUT INFORMATION SUPPLEMENT
TIPS FOR BODY CORPORATE MANAGEMENT
The need for multi-faceted insurance For an accommodation provider, risk management is one of the major fundamentals of conducting business and insurance is at the forefront, which can be a minefield on its own.
Insurance requirements can largely be divided into: • • • • •
Property Public liability Management liability Loss of business Disaster
Bearing in mind, each of these can overlap into each other areas.
Property One of the most important issues when insuring your business assets is the establishment of an adequate sum insured for the property after a partial or total loss. The setting of an adequate sum
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insured should be considered when taking out a policy, not at or after a loss. Post-loss, it’s then the job of an assessor to determine the full replacement value prior to the loss so that the insurer can determine if any underinsurance penalty should apply. Managers should also consider the strata property value - engage a qualified valuer or qualified surveyor to help give the best value. Most insurers recommend this be done every two to three years and no more than every five years. The policy limit needs to take into consideration a number of factors, such as: •
Small, as well as large, damage
•
The actual replacement value of buildings, out buildings, perimeter fences, paths, car parks, underground services,
allowing for escalation of building costs during the rebuild process. •
Replacement cost of contents, plant and equipment, including things like pool replacement, major signage and landscaping. This cost should also account for the effects of inflation, cost increases and currency fluctuations on imported equipment.
•
The maximum level of stock likely, if a loss occurs at a peak period or while a stockpile has accumulated.
•
Costs of fire extinguishment.
•
Demolition of damaged property and removal of debris, site clearing, clean-up of contaminants, transport and disposal of high hazard contaminants such as asbestos.
•
Temporary protection
of undamaged property and temporary repairs to minimise further loss. •
Administrative costs to restore records.
•
Architects, engineers, surveyors and other professional fees in the reconstruction of the building.
•
Increased building costs as a result of government requirements - local, state and federal (such as upgraded fire prevention measures, flood risk minimisation, heritage preservation order, disabled access, etc.). Take into account changes in building regulations i.e. railing height, ACP and cladding as they may entail product replacements along with the removal of debris and demolitions.
RESORT NEWS – AUGUST 2018
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