About the Author
Michael was born in the Mozambique capital city of Maputo (formerly Lourenco Marques). At age 7, 1953, he began boarding School at St. Peter’s Preparatory School, Rivonia, Republic of South Africa, and finished at St. John’s College, Johannesburg in 1962.
He qualified Bachelor of Architecture at The University of Natal, Durban in 1971. After fulfilling his compulsory military duties as a Second Lieutenant in Mozambique, he moved to South Africa and embarked on his career with the South African Railways in 1976. He achieved the position of Regional Architect in the Natal System in the year 1984.
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In the year 1988, he emigrated to Australia and was employed in the position of Architectural Facilities Strategic Planning Officer at The University of New South Wales and thereafter with The University of Sydney until his retirement in July 2010.
After years of being involved in his strata owners’ corporation, an undervalued valuation of their mandatory building insurance prompted him to conduct research into the matter. After several years, he produced his final manuscript in 2024, Building Insurance: Your Guide. Michael lives with his wife in Sydney, Australia.
Building Insurance Your Guide:
Author Brand Story
I have always found myself deeply fascinated by intricate details, and my inner drive stems from the pursuit of distinguishing between right and wrong, as well as exploring the ambiguous territories that lie in between.
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What adds to the relevance of this work is my gained understanding of the operations of strata owners corporations and the corresponding legislation mandating building insurance for such corporations.
This greatly emphasizes my role in uncovering, clarifying, and advocating for the rectification of issues pertaining to insurance and associated legislation.
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During my tenure as the treasurer of the strata committee, I was entrusted with overseeing the financial plan. During this timeframe, a particular strata manager secured a renewal insurance policy with a value approximately half that of its predecessor. This individual was resolute in their belief that our OC should adopt the new, more affordable insurance. Notwithstanding my firm objection, they persistently criticized me and engaged in communication with the other proprietors, who subsequently voiced their backing, asserting that I was the only dissenter. I remained steadfast in my decision and subsequently embarked on a journey of researching building insurance, which also entailed an extensive review of pertinent legislation.
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I hope my readers will join me in co-advocation for the changes for their rectification.
About the Book
In the intricate world of building insurance, accurately determining the Building Sum Insured Value (BSI Value) has been a longstanding challenge. Traditional methods, primarily focused on Replacement Value, often fall short, failing to cover both replacement and supplementary expenses. This shortfall points to the inadequacies in the current strata titles acts and regulations. But it's not just a matter of legislative gaps; it's about ensuring that every property owner is shielded from the potentially devastating financial and emotional fallout of underinsurance.
Beyond the Fine Print: Understanding Your Coverage
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At the core of our discussion is a critical examination of the language used in insurance policies. It's a reflection of a broader cultural tendency to sidestep responsibility for additional costs, leaving many policyholders vulnerable when disaster strikes. The lack of synchronization between Strata and General Home Insurance exacerbates this issue, leading to a patchwork system that inadequately addresses the need for comprehensive protection.
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Valuation and Legislation: Identifying the Gaps
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The revocation of the Valuers Act of 2003 marked a significant shift, leaving a vacuum in the field of Registered Building Insurance Valuation Specialist Valuers. This absence complicates the accurate assessment of BSI Value. Additionally, the existing Catastrophe Code and legal definitions—or lack thereof—related to property damage prove inadequate for today's needs. Coupled with the problematic enforcement of the 80% Average Provision Rule and inconsistencies in NSW Strata and Commonwealth legislation, it's clear that the framework governing building insurance is in dire need of an overhaul.
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Facing the Repercussions and Finding Solutions
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The consequences of these systemic flaws can be severe, from the unviability of Indemnity Value assessments used as leverage in settlements to the nullification of policies by third-party claims from banks or financiers. In an era where the assurance of recovery post-disaster is paramount, the current state of affairs is untenable.
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This guide aims to illuminate these complex issues and offer insights into navigating the maze of building insurance. By understanding the nuances of different insurance formulation methods and the critical selection of the BSI Value, property owners can better prepare for the unexpected. Armed with knowledge, you can advocate for necessary changes, ensuring your well-being and financial stability remain intact amidst the challenges of loss and recovery.
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Your understanding of these matters will not only safeguard your property but also contribute to a larger movement towards fair, transparent, and effective building insurance practices. Join us in paving the way for a future where every property owner is comprehensively protected, regardless of unforeseen disasters.