Queensland owners need to be mindful that air-conditioning units, whether they are fixed or not, are not covered by strata insurance.

In the Body Corporate and Community Management (Standard Module) Regulation 2020 it is implicitly stated that Air-conditioning units servicing an individual lot are the not part of the definition of building for insurance purposes.? 

“building includes improvements and fixtures (but not including carpet) forming part of the building, but does not include— (c) mobile or fixed air conditioning units servicing a particular lot; or”

Generally, insurers will provide cover in accordance with applicable strata legislation and so, strata insurers will then seek to apply an exclusion that reflects the legislation.

In other states of Australia there is no exclusions of this type in their strata legislation for Airconditioning units and therefore, insurers will only seek to exclude Airconditioning units in Queensland in their insurance policy.

Individual statesdo excludecover for items most peoplewould deem to be part of the building is not unusual. For example in New South Wales and Australian Capital Territory, strata legislation excludes cover for paint and wallpaper where it does not in other states and territories.

We recommend all owners of lots in strata take out contents or landlords insurance to avoid gaps in cover.This is intended to cover off on anything that is not covered by strata insurance.

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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