When there are multiple owner occupied houses on the same site (not cross-lease or Body Corp.) with multiple insurers and homes that all need demolishing, how is it decided who takes the lead role in the demolition and whose responsibility is it to coordinate that?
Asked: 1 April 2014
Southern Response advises:
If Southern Response has deemed any dwelling beyond economic to repair, and it is not adjoined to another dwelling, we would only be co-ordinating with the owner. If the dwellings are adjoined, the insurers work together with the owners to decide who will co-ordinate the demolition. Generally, this will be the insurer with the most financial exposure at the site.
Physically independent dwellings are normally treated individually by insurers (with consultation with other insurers involved on site). For buildings that are physically connected, the construction/demolition is typically carried out by one insurer (the lead) on behalf of both. The lead insurer is determined on a case by case basis. For further clarification please speak to your claims case manager.
Discussion would be held between insurers as to which insurer wishes to lead the demolition project, and costs are agreed – or it may be more agreeable to the insurers to cash settle the costs based on a firm quotation.
Insurers would get together and determine who has the resources and capacity to act as ‘lead insurer’ for that property. The lead insurer would then be responsible for co-ordinating the demolition of behalf of all parties.