Case Study: Turning a 400% Insurance Threat into a 47% Premium Saving for Tier-1 Owners Corporation
At OCX, we pride ourselves on navigating the most complex Owners Corporation challenges with clarity, persistence, and results. The recent insurance renewal and defect management journey for one of our valued clients demonstrates exactly that: turning a looming crisis into one of the most positive outcomes imaginable.
The Challenge: Defects, Deadlines, and Soaring Premiums
In early 2025, the 155-lot Owners Corporation was faced with a perfect storm:
- A long-standing insurer declined renewal due to recently identified defects.
- The initial market outlook was bleak:
- An insurer in London projected premiums of ~$600,000.
- A local insurer quote came in at just over $300,000.
- Compared to the previous year’s $152,000 premium, this meant potential increases of up to 400%.
The situation left the OC vulnerable to either being uninsured or financially crippled.
Taking Control: Immediate and Decisive Action
On 11 February 2025, Insurance Broker 1 notified our manager, Sanjeev Karki, of structural issues flagged in a survey by Insurer 1. The renewal was made conditional on receiving a Fire Engineer’s report and a comprehensive defect report.
Instead of passing on the problem, Sanjeev immediately escalated to the builder, emphasising the March 11, 2025 deadline and the potential consequences of inaction. By attaching expert reports already obtained by the OC, he set a clear standard of accountability.
Proactive Communication and Negotiation
Between February and April 2025, Sanjeev facilitated critical communication between the builder and Insurer 1. When the builder engaged their own structural engineer, he confirmed the insurer would accept this report, saving the OC unnecessary costs.
By consistently providing reports, updates, and follow-ups, he ensured the renewal process kept moving.
Securing Coverage Amidst Uncertainty
As renewal approached, Insurer 1 declined to extend cover. Yet Sanjeev’s persistence paid off:
- He secured a 3-month extension, buying the OC critical time.
- Meanwhile, he proactively sought quotes from Insurance Brokers 2, 3, and 4.
- This foresight led to a breakthrough – Insurer 2 (via a placement solution) offered cover at a highly competitive rate.
Driving the Rectification Process
Beyond insurance placement, Sanjeev ensured that building defects were addressed:
- Negotiated a 3-year warranty on rectification works from the builder beyond statutory requirements.
- Worked with lawyers to finalise a Deed of Agreement.
- Engaged independent experts to assess remaining issues.
This multi-pronged approach not only secured cover but also protected the OC’s long-term interests.
The Results: Crisis Averted, Costs Slashed
The outcome was extraordinary:
| Comparison Point | Premium (AUD) | Difference (AUD) | Percentage Change |
| Last Year vs. Current | $152,000 → $80,214.73 | -$71,785.27 | -47.2% |
| Local Insurer Quote vs. Current | ~$300,000 → $80,214.73 | -$219,785.27 | -73.3% |
| Lloyd’s Projection vs. Current | ~$600,000 → $80,214.73 | -$519,785.27 | -86.6% |
Instead of facing a devastating increase, the OC’s premium dropped by nearly half.
Key Achievements
Through strategic action and relentless persistence, Sanjeev:
- Held the builder accountable, securing rectification with a 3-year warranty.
- Maintained insurer confidence, securing extensions when needed.
- Kept the members of the committee up to date every step of the way.
- Explored working with alternative insurance brokers, refusing to settle for excessive premiums.
Conclusion
This case study highlights how proactive management, prompt communication and deep industry expertise can transform risk into opportunity. At OCX, we don’t just manage challenges – we turn them into success stories that safeguard our clients’ financial security and peace of mind.
Looking for an OC manager who will fight for the best outcome every time? Get in touch with OCX today.