When buying a strata property, there are many important things to consider, not the least of which is strata insurance. As many building defects continue to be reported in the news, it is crucial to check that you have the right insurance cover, as well as what might affect your premiums.
What is strata insurance?
Simply put, strata insurance is insurance that covers buildings with a shared property in the instance of events such as extreme weather and break=ins. Also known as body corporate insurance, it is normally shared between body corporate members under the management of the strata title or body corporate entity.
This form of insurance is mandatory and must also cover public liability for any individuals who may be injured on common property. Typically, the owners of strata units will share the premium costs of the insurance as a part of their standard strata fees and liabilities.
What does strata insurance cover?
Strata insurance covers any damage caused to strata properties such as apartments and townhouses, and includes cover for lost rent and temporary accommodation. It covers shared and common property areas including:
What does strata insurance NOT cover?
Most importantly, strata insurance does not cover the contents and personal items of your strata property. Furthermore, as with other forms of insurance, there may also be restrictions and exclusions in instances like landslides or floods.
What factors affect the strata insurance premium?
There may be a number of factors that will affect your insurance premium. These include, but are not limited to:
Other types of insurance
We highly advise that you still take out other forms of insurance in addition to the strata building insurance. For example, if you are an owner-occupier, contents insurance will cover your personal belongings and items such as light-fittings, blinds, appliances, and more.
If you are a landlord renting out your strata property, we also recommend landlord insurance. Many mortgage lenders will specify that you must purchase this insurance before tenants can move into your property, but more importantly, it will cover you for events such as:
Do you have questions about the types of insurance covering your strata property? Get in touch with our team today for more information on our range of strata services or explore our document bank for more information.