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Advantage General targets strata market

Published:Sunday | January 17, 2010 | 12:00 AM

Corporate offices of Advantage General Insurance, Trafalgar Road, New Kingston. – File

Advantage General Insurance Company has rolled out a product targeted at strata corporations, entities which will soon be expected to adhere more vigorously to insurance requirements under the amended Strata Titles Act.

Of the 2,372 registered strata developments nation-wide, industry experts say round 90 per cent are uninsured, providing scope to insurers to grow business.

Advantage General's new product, called StrataSure, is intended to meet the needs of the townhouse and apartment complexes that are occupied as private dwellings.

StrataSure provides coverage for buildings and other structures against major perils, including fire, hurricane, earthquake, windstorm, floods, and coverage for landscaping, debris removal and also loss of maintenance fees.

Charmaine McIntosh, corporate accounts specialist at the company, says based on a rate of 0.6 per cent, a property with replacement value of $200 million would attract a premium of about $1.2 million plus GCT, subject to underwriting requirements.

The premium rate is adjustable at policy renewal, moving up or down depending on previous loss experience, such as hurricanes, and whether loss-prevention measures are in place at the strata complex.

Also important are the value, location and quality of construction of the building.

The StrataSure policy also includes coverage for the legal liabilities of the management committee, directors and officers, and their legal liability for damage or injury to third parties, and employees' dishonesty.

pensioners' coverage

Advantage is also marketing its rebranded pensioners' home and contents coverage - PenPak. A retiree with a home valued at $5 million, for example, would pay $25,000 in premiums.

The property would be insured at replacement or reinstatement value, McIntosh said.

The standard two per cent deductible would apply to claims in the event of a catastrophe, but would not apply in the event of a fire.