Strata insurance
What is strata insurance?
If you own a townhouse, unit, or apartment and you’re sharing common space with others, you don’t want to be left to foot the bill if there’s damage to shared parts of the building or items.
Strata insurance can cover the building and all common or shared property, and contents which belong to the owners’ corporation. The type of cover and its cost will depend on the kind of building, where it’s located and the amount of common property you share.
Who should consider it?
Strata insurance is compulsory in every state – so if you’re part of an owners’ corporation in a townhouse, unit, flat, apartment or duplex, the owner’s corporation will need strata insurance.
An insurance broker can arrange strata insurance on behalf of the owners’ corporation.
What can it cover?
“As a [strata] owner, you also have a share of an unlimited liability for anything that goes wrong, which is why strata insurance is compulsory in every state and territory.”
Strata Community
Association
You are covered for:
- Replacement Value of Building Improvements and fixtures
- Common area contents and
- Underground services
Building cover, which is in inside and outside a unit owner’s lot, includes:
- Fences
- Toilet basins
- Shower screens
- Sinks
- Baths and basins
- Windows
- Cook tops and bench tops
- Built-in cupboards
- Doors both externally facing from the individual lot and internal doors and
- Fixed tiling.
Common area contents insured includes:
- Carpets within a hallway, entrance or lobby
- Indoor and outdoor furniture
- Barbecue equipment
- Pot plants and
- washing machines and dryers owned by the body corporate which are housed on common property for the use of all residents.
Policies generally won’t include cover for:
- Asbestos or asbestos derivatives.
- Erosion or earth movement.
- Certain property features such as fencing.
- Contents within apartments such as:
- Carpets
- Floating floorboards
- Light fittings
- Internal window coverings
- Furniture
- Household appliances and
- Valuables and personal equipment.
Important note
This information is provided to assist you in understanding the terms, implications and common considerations in Strata insurance. It does not constitute advice, and is not complete, so please discuss the full details with your All Star broker.
A Product Disclosure Statement (PDS) is available from All Star Brokers. You should consider the PDS in deciding whether to acquire, or continue to hold, strata insurance.
