“We are seeing an increasing number of claims for water and sewerage overflows, and in particular we are concerned that claimants increasingly seem to be unaware of what cover the body corporate has in place,” says Mr Lyons.
He says the boom in apartment buildings has also caused insurance cover concerns in the transition from construction to residential policy cover.
“A number of developers are selling apartments and having them occupied while parts of a block are still under construction. The construction insurance provides quite different cover to that of a residential property policy and many owners and occupiers are unaware that damage caused during this transition period may not be covered under their body corporate residential policy.”
Mr Lyons is urging apartment owners and investors to carefully look at their insurance cover and ensure it meets the specific needs for high-density accommodation.
He says many owners simply look for the cheapest “off-the-shelf” insurance cover without recognising the need for specialised, tailored cover which meets the needs of this style of accommodation.
He said the phenomenon of high-density, inner-city accommodation has its own complexities and he is concerned many owners and investors are not aware of the specialist insurance requirements for this type of property. Oceanic Insurance Limited, founded in 2001, is a wholly New Zealand-owned underwriting agency specialising in residential and commercial body corporate insurance and has more than 50% of the Auckland market.
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