EQ Excess on Commercial Property
You may be aware that the EQ excess on any commercial property claim is now 5% of the sum insured.
So if you own a building worth $500,000 then you have to pay the first $25,000 of any earthquake related insurance claim.
We had a client get in touch with us because the building they own is in a body corporate. Their building was fine but one of the buildings was damaged in a recent quake. As the insurance policy was owned by the whole body corporate the excess on this claim was $250,000 and even though our clients property wasn't damaged they were being asked to contribute their share towards this excess (in this case approx $15k).
If you own a building in a similar structure then we would recommend trying to insure yourself so that you only have to pay an excess if your property is damaged. Otherwise you could be up for a big contribution every time there is a quake!
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