What does my strata insurance cover? What do I need to obtain separate cover for?

Understanding Strata Insurance Coverage

 

When you purchase a strata property, the body corporate or owner's corporation takes out a strata insurance policy. This policy is specifically designed to cover the building structure as defined by the legislation in your state or territory. To differentiate between what is covered, imagine picking up the building and shaking it; anything that falls out is not covered by strata insurance and falls under contents insurance.

 

Strata insurance typically covers the building's structure, including fixtures and fittings such as bathroom and kitchen fittings. However, it may not cover items such as carpets/floating floors, curtains, blinds, appliances that are not permanently affixed to the property, and certain specific items depending on your state. For example, in Queensland, air-conditioning units that service individual lots may require separate coverage. Similarly, in NSW, coverage for items like paint, wallpaper, and floating floors may or may not be included in the policy, so reviewing your specific policy is important.

 

Coverage Gaps and Additional Insurance Needs

 

While strata insurance covers the building structure and certain fixtures, it does not cover personal injury claims or property damage claims made inside your lot. Additionally, it does not protect items not covered by strata insurance, such as your personal belongings and assets. To address these gaps, it is advisable to obtain separate contents insurance or landlords' insurance.

 

Contents insurance provides coverage for your personal belongings and assets within the strata property, including furniture, appliances, electronics, and other valuable items. This coverage ensures that you are protected in the event of theft, damage, or loss.

 

Landlords’ insurance is recommended for property owners leasing their strata property to tenants. It offers protection against risks such as loss of rent associated with damage to contents, legal liability for injury inside the lot and other covers specific to the needs of landlords.

 

Determining Your Coverage Amount

 

When obtaining contents or landlord's insurance, it's essential to determine the appropriate coverage amount. First, consider the value of your personal belongings, including furniture, electronics, appliances, and other valuable items. While estimating the sum insured, adding an additional amount for anything you have not considered or accounted for is advisable.  Insuring for an extra $10 000 to provide extra peace of mind would generally only be an additional $20 to $50 in premium.

 

 

Understanding the coverage provided by your strata insurance policy is crucial to protect your investment. While strata insurance covers the building structure and certain fixtures, it's vital to obtain separate contents insurance or landlords' insurance to address personal belongings, liability, and other specific needs. Strata Insurance Solutions specialises in tailoring insurance solutions for strata property owners across Australia. Contact us today to discuss your insurance requirements and protect your valuable strata investment.

 

 

Understanding Strata Insurance Coverage: Differentiating Between Strata and Contents Insurance

 

 

When investing in a strata property in Australia, it's important to understand the scope of coverage provided by your strata insurance policy. Many owners often wonder what their strata insurance covers and what additional insurance they may need. In this article, we will explain the differences between strata and contents insurance, helping you make informed decisions to protect your investment. At Strata Insurance Solutions, we specialize in providing tailored insurance solutions to meet the unique needs of strata property owners across Australia.

 

Understanding Strata Insurance Coverage

 

When you purchase a strata property, the body corporate or owner’s corporation takes out a strata insurance policy. This policy is specifically designed to cover the building structure as defined by the legislation in your state or territory. To differentiate between what is covered, imagine picking up the building and shaking it, anything that falls out is not covered by strata insurance and falls under contents insurance.

 

Strata insurance typically covers the building's structure, including fixtures and fittings such as bathroom and kitchen fittings. However, it may not cover items such as carpets/floating floors, curtains, blinds, appliances that are not permanently affixed to the property, and certain specific items depending on your state. For example, in Queensland, air-conditioning units that service individual lots may require separate coverage. Similarly, in NSW, coverage for items like paint, wallpaper, and floating floors may or may not be included in the policy, so it's important to review your specific policy.

 

Coverage Gaps and Additional Insurance Needs

 

While strata insurance provides coverage for the building structure and certain fixtures, it does not cover personal injury claims or property damage claims made inside your lot. Additionally, it does not protect contents items that are not covered by strata insurance, such as your personal belongings and assets. To address these gaps, it is advisable to obtain separate contents insurance or landlords’ insurance.

 

Contents insurance provides coverage for your personal belongings and assets within the strata property, including furniture, appliances, electronics, and other valuable items. This coverage ensures that you are protected in the event of theft, damage, or loss.

 

Landlords’ insurance is recommended for property owners who are leasing their strata property to tenants. It offers protection against risks such as loss of rent associated with damage to contents, legal liability for injury inside the lot and other covers specific to the needs of landlords.

 

Determining Your Coverage Amount

 

When obtaining contents or landlords insurance, it's essential to determine the appropriate coverage amount. Consider the value of your personal belongings, including furniture, electronics, appliances, and other valuable items. While estimating the sum insured, it is advisable to add an additional amount for anything you have not considered or accounted for.  Insuring for an extra $10,000, to provide extra peace of mind, would generally only be an additional $20 to $50 in premium.

 

 

Understanding the coverage provided by your strata insurance policy is crucial to ensure the protection of your investment. While strata insurance covers the building structure and certain fixtures, it's important to obtain separate contents insurance or landlords’ insurance to address personal belongings, liability, and other specific needs. At Strata Insurance Solutions, we specialize in tailoring insurance solutions for strata property owners across Australia. Contact us today to discuss your insurance requirements and protect your valuable strata investment.

 

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