Are My Contents Covered by Strata Insurance?
The basic principle is that if you pick the unit up and shake it, anything that falls out is lot owner’s contents including temporary flooring such as carpet, blinds and curtains, and appliances that are not permanently attached. These items are not covered by strata insurance. As a lot owner, you can choose to insure them under landlord’s or contents insurance.
Depending on the state that you live in, there are certain items that are not covered under strata insurance.
- In New South Wales, paint and wallpaper are not covered.
- In Queensland, air conditioning units, whether fixed or not, are not covered.
When searching for a landlord’s or contents insurance policy, it is important to find one that will and can provide cover for the things not insured under a strata insurance policy. We recommend that you avoid any gaps in cover.
Landlord’s and/or contents insurance, dependent on policy wording and exclusions, can include cover for public liability (also known as legal liability), along with other overlapping areas in which you’ll have more avenues available when it comes to lodging a claim.
We suggest lot owners add an extra say $10,000 contents cover on what they believe should be covered for any incidental items not considered as it might only cost say $50 for the extra piece of mind. We recommend referring to your strata insurers’ policy for the definition of “insured property” or “building” to fully understand what is insured and covered.
Question from WA: My neighbour lodges a claim under strata insurance for their tenant’s damage. This increases the premium that I pay even though I have no relation to it. What are my options?
Question Summary:
I live in a 3-lot complex and 2 of the units are rentals. The owners make claims for damage caused by their tenants on strata insurance which covers the 3 lots. In doing so, it increases the premium for the strata lots.
I don’t think this is reasonable as they are collecting rent on their lots and should have separate landlord’s insurance to cover any damage caused by their tenants. It does not seem reasonable that my insurance premiums are increased for their tenants’ damage.
Answer from Strata Insurance Solutions:
Strata insurance covers all items defined as building. Thus, it is not possible to get a separate landlord’s insurance policy to cover any building items that the strata policy already covers. Therefore, the legislation requires the strata corporation to have cover.
The basic principle is that if you pick the unit up and shake it, anything that falls out is lot owners’ or landlord’s contents, including but not limited to temporary flooring such as carpet, blinds and curtains, and appliances that are not permanently attached.
Other permanent fixtures including kitchen and bathroom cabinetry are covered by strata insurance subjecting to the policy terms, conditions, and exclusions.
When you purchase into strata, you buy into the claim’s history of the complex. The only way to avoid sharing a claims history with a lot owner or a building is to not own in strata at all. There will always be pros and cons in living in strata.
Question from NSW: I have tiled porcelain floors in my unit. Is this covered by strata insurance or by my own contents’ insurance?
Question Summary:
Can you advise whether tiled porcelain floors are covered by the strata’s building insurance, or by my content’s insurance?
From what I understand, if the flooring is glued or fixed to the floor, then it is covered under the building insurance. I have been insuring my tiled flooring, which was installed after the construction of the building, under my total insured amount on my contents insurance.
What should I do when the time comes for me to renew my contents insurance policy?
Answer from Strata Insurance Solutions:
Strata policies cover all permanent fixtures, and this includes permanent flooring. Lot owners may choose to renovate their property over time and any newly added fixtures will be insured under the strata insurance policy.
In New South Wales, the basic principle is that if you pick the unit up and shake it, anything that falls out is lot owners’ content, including temporary flooring such as carpet, blinds and curtains, appliances that are not permanently attached, and paint and wallpaper.
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