In our video series Michael Vumbaca, General Manager at Jamesons Strata discusses what you need to know about insurance in strata.
Insurance commissions can make up a huge part of a Strata Management Company’s revenue.
What is an insurance commission?
An insurance commission is a commission paid to the Strata Management Company as a result of them placing insurance for the Strata plan for a period for up to 12 months.
Often an insurance commission can be an amount up to 20 percent of the total sum of the insurance policy. So for any single Strata Management Company, this can result in huge volumes of money over a 12 month period.
At Jamesons, we don’t accept any commissions whatsoever, so your insurance premiums is generally reduced by 20 percent each year when we place your insurance.
Your Strata manager has an obligation to provide on the annual general meeting papers each year the sum of any insurance commission that they received, and any commission they may receive over the next 12 months. Look out for this on your AGM papers. This single change created huge waves across the industry, as it is a huge revenue spin-off for Strata Management Companies.
We believe it will provide transparency for our clients and Strata Management Companies, and evolve the relationship between Strata managers and their clients.
If your Strata plan is interested in saving money on insurance, come and talk to our team at Jamesons as we can attempt to generate you a saving of up to 20 percent on your insurance policy.
Jamesons are a family run business that have provided Sydney residents with strata management services for over 50 years. If you would like more information regarding strata management, please contact Jamesons Strata Management on (02) 8969 3400.