What is the Difference between Strata Insurance and Homeowners Insurance

Strata Insurance Solutions  Homeowners vs Strata

As a homeowner, it’s important to understand the different types of insurance available to protect your property. Two common options are strata insurance and homeowners insurance. While they may seem similar, there are key differences between the two. Strata Insurance Solutions, we’ll help you explore those differences to help you determine which coverage is right for your home or investment.

What is Strata Insurance?


Strata insurance is a type of insurance policy that covers shared property in a strata complex or building. This type of insurance is typically undertaken by the strata manager or committee on behalf of all owners and covers the property structure and common areas of the building, such as elevators, hallways, and communal gardens

What is Homeowners Insurance?


Homeowners insurance is a type of insurance policy that covers a single residential property. This insurance is taken out by the homeowner and covers their property and personal items. Owner’s insurance can also cover liability in case someone is injured on the property.

Coverage Differences


Property Coverage


One of the main differences between strata insurance and homeowners insurance is the type of property that it covers. Strata insurance covers shared property, such as the building structure and common areas, while homeowners insurance covers individual residential buildings. If you own a home, you’ll need homeowners insurance to cover your property, but if you live in a strata complex or building, you’ll be covered by the strata insurance policy taken out for the building to cover the shared property. make sense?

Liability Coverage


Another difference between strata insurance and homeowners insurance is liability coverage. Homeowners insurance includes liability coverage, which protects you if someone is injured on your property. Strata insurance typically includes liability coverage for the body corporate or owners corporation, but it may not cover liability for individual owners.

Personal Property Coverage


Personal property coverage is another area where strata insurance and homeowners insurance differ. Homeowners’ insurance typically covers personal belongings and contents inside the home, such as furniture and electronics, while strata insurance does not cover contents. If you live in a strata complex or building, you’ll need to purchase a separate contents insurance policy to cover your personal belongings.

Excess


Excess is another factor to consider when comparing strata insurance and homeowners insurance. An excess is the amount of money you’ll need to pay out of pocket before the insurance policy kicks in. Strata insurance policies typically have a higher excess than homeowners insurance policies.

Which Coverage is Right for You?


Choosing between strata insurance and homeowners insurance depends on your living situation and specific needs. If you own a home, you’ll need homeowners insurance to protect your property and personal belongings. If you live in a strata complex or building, you’ll need strata insurance to cover the shared property.


If you’re unsure which coverage is right for you, consider the type of property you own or live in, the level of coverage you need, and your budget for insurance premiums. It’s also important to speak to Strata Insurance Solutions to compare policies from different insurance providers to find the best coverage at a price you can afford.

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

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Tyrone

Tyrone Shandiman
Strata Insurance Solutions
LINK, Level 1, 57 Berwick St,
Fortitude Valley QLD 4006
Ph: 1300 554 165
E: tshandiman@iaa.net.au

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

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