CoverWell Charter

Registered Name: CoverWell Limited

Operating name: CoverWell

Introduction

CoverWell was established following discussions by a group of apartment owners concerned about the impacts of the insurance market on Wellington apartments and the wider implications of the status quo for apartment living, owners, and the wider Wellington city economic activity.

CoverWell Ltd was established as a registered company to reserve the name, provide options for its future direction, following the current research and engagement phase with apartment owners and other stakeholders, and to provide a formal entity for the financing of research and engagement activities.

Purpose

Promote affordable, fair, and sustainable solutions enabling the placement of effective insurance cover for Wellington apartment owners.

We will do this by:

  • Building awareness and understanding of insurance as it applies to apartment buildings for chairpersons (on behalf of apartment owners) through information published on our website and maintaining a list of contacts for future engagement

  • Engaging with chairs (or their delegated person) to discuss proposals for change related to insurance to develop a mandate for any proposals

  • Communicating to chairs any opportunities to consider alternate insurance proposals that may be available

  • Undertaking research and promoting debate and discussion on insurance and related issues that affect the apartment insurance market, including in the context of multi-unit dwellings and seismic risk within the evolving risk landscape

  • Collaborating with other organisations who are interested in insurance for unit-title buildings.

Note that CoverWell’s current focus is on Wellington apartment owners, but the activities we undertake, in discussion with other groups, will or may benefit others across New Zealand. This Charter will be updated if CoverWell’s geographic focus explicitly changes to beyond Wellington.

Operating intent of CoverWell

We are an advocacy organisation seeking to research, engage, connect and propose alternatives to address the insurance issues in Wellington. We are not seeking registration as a charity as our purpose does not readily fit within the criteria of a charity.

For the avoidance of doubt, we are not a broker, insurer, or an agent for a broker or insurer. We aim to bring parties (i.e., apartment building management committees, brokers, insurers) together to explore options that could be commercially viable for those parties.

If, in the future, a different role emerges that requires a commercial profit-based arrangement, this Charter will be updated.

Our stakeholders

Currently, Wellington apartment owners and the management committees for their buildings are CoverWell’s key stakeholders. CoverWell is actively seeking to establish a database of Wellington apartment building chairpersons.

Apartment owners from other parts of NZ have expressed an interest in CoverWell’s activities, but our focus for establishing a database and pursuing alternative solutions is currently focused on Wellington. Information resources on our website are available to anyone at this stage, but we may need to restrict some resources to people who have made financial commitments. Developers of unit title buildings and commercial unit-title building owners have also expressed an interest in CoverWell’s activities.

Some initiatives that focus on changes to current legislation (e.g., Unit Titles Act insurance provisions) will apply to all unit-title owners, not just in Wellington. CoverWell will engage and collaborate with other organisations where there is a wider benefit.

There are several organisations active in the apartment building, multi-owner building, and unit-title space. CoverWell’s focus is primarily on insurance matters and aims to work collaboratively with other organisations to strengthen the range of support for apartment owners. CoverWell will not replace other organisations.

Management structure of CoverWell

CoverWell’s purpose, our approach to achieve that purpose, and our strategic direction are jointly developed and agreed by the establishment team (“Core Team”):

  • Peter Dow

  • George Hooper

  • Doug Martin (Chair)

  • Geraldine Murphy

Where further insight and expertise are deemed essential to steer and execute our objectives, the Core Team agrees to any necessary additional knowledge and expertise, and acts to co-opt individuals onto the team as required. This proactive approach ensures that our decision-making process remains informed and robust, aligning with our overarching purpose.

Conflict of interest

All Core Team members are apartment or town house owners in a unit-title complex and have the potential to benefit from one or more initiatives that may be proposed or implemented.

For clarity, all Core Team members must seek approval of their respective Body Corporate Chair and/or Committees before they can agree to any proposals on behalf of their Body Corporate.

Financing CoverWell’s advocacy role

CoverWell operates as a not-for-profit organisation. All funds collected are used for payment of expenses incurred in delivering the purposes of CoverWell.

CoverWell is registered for GST. All fees listed on this website are GST exclusive. GST will be added to the fee(s) when invoiced.

Expenses

CoverWell is a volunteer-led organisation. Individual Core Team members are not financially compensated for their time, knowledge, and effort. There is one paid resource to assist with the administration tasks (the Project Coordinator). This role was funded by one of the Core Team (Peter Dow). All costs incurred for the administration of CoverWell will be recorded.

Contribution to support CoverWell advocacy purposes

There are no fees for services provided by CoverWell. A contribution fee structure has been established:

  • Annual membership fee: administration resource, any license fees or costs (e.g., company registration fee), company overheads (e.g., domain registration, website and email hosting, cloud accounting subscription, accounting fees, etc.), expert input where necessary (i.e., necessary knowledge is not available as a voluntary contribution), meeting venue costs, and sundry costs necessary for the administration of CoverWell.

  • One-off alternative solutions engagement fee: collecting required detailed information from body corporates that have agreed to participate in pursuing alternative insurance providers, arranging visits to buildings as required, meeting facilities, and, if necessary, travel to meet overseas parties and NZ parties outside Wellington. Our preference is to minimise travel costs and use online meetings.

The annual membership fee period starts on 1 July of each year. The current fees for each category are published on this website.

Applications for membership received during the financial year will be charged on a pro rata basis. The pro rata calculation is: annual membership fee for building / 12 months x N number of months until end of June. The invoicing month will count as a full month. For example, if your membership application is invoiced in January, and the applicable annual fee is $250, then you will be invoiced for $125.00 (250/12x6). The pro-rated annual fee will be rounded to the nearest whole dollar.

Payment of membership renewals will not be on a pro rata basis.

The Charter and website will be updated if the fee categories are expanded to other interested parties in the future.

While Coverwell, as a non-profit advocacy group, anticipates meeting its goals and sustaining routine activities through annual support fees, there may arise occasions where specific objectives necessitate additional funding for research or analysis. In such instances, our approach is to seek stakeholder and/or third-party sponsorship to secure the necessary funds. This approach enables us to remain adaptable and responsive to emerging needs, ensuring that we can effectively pursue our purpose.

Financial statements

Annual financial statements in accordance with generally accepted accounting practice will be published on our website within three months after the end of the financial year. These will include all expenses incurred for administration and pursuing alternative solutions, fees paid and use of the funds established.

Use of contribution funds

The contribution funds received are used to:

  • Reimburse Peter Dow for CoverWell establishment and initial costs

  • Pay for administrative costs for CoverWell and for other costs covered by the support fee

  • Pay for costs incurred to pursue alternative solutions

The use of any sponsorship monies for specific research and analysis will be separately recorded.

Management of funds in event that CoverWell, as an advocacy organisation, is discontinued

Any outstanding costs paid by Peter Dow will be reimbursed from available funds to the extent possible.

Any remaining funds will be distributed following consultation with those BC Chairs (on behalf of their body corporates) that have contributed to the fund in the past. Consultation will canvas options for the remaining funds, such as distribution to contributors and the basis, distributing the funds to another volunteer or advocacy group with similar purposes, or to a commercial/profit-based entity carrying on the purposes of CoverWell.

This Charter was adopted by the CoverWell Core Team at its meeting in Wellington on 15 May 2024 and was last updated on 17 September 2024 (update to the Management structure section).