Being a Strata Title Owner comes with certain responsibilities, from notifying the Owners Corporation of changes in ownership or occupancy, to complying with the scheme’s by-laws and liaising with lot owners with regard to any building changes. These responsibilities carry a certain amount of risk, that’s where Strata Insurance Comes in.
Strata Insurance is mandatory for title owners in every Australian State. But, what exactly is Strata Insurance? What does it cover you for? And, do you have to have it?
What is Strata Insurance?
Strata Insurance is general insurance that covers common property under the management of a strata title or body corporate entity. The premiums for Strata Insurance are typically shared amongst the lot owners as part of their strata fees and levies.
What are my Insurance Obligations as a Strata Title Owner?
As a strata title owner, having Strata Insurance in place is mandatory in every Australian State, however each State and Territory has different legislative requirements that deal with insurance for strata title properties.
It is vital that you check your insurance meets the legislative requirements of your State. Your Strata Manager may arrange this insurance on your behalf. However you are free to make alternative arrangements from a specialist broker who can provide more information on your obligations depending on your location.
What does a Strata Insurance policy cover?
Strata Insurance policies will cover material damage as a result of an insured peril to structural fixtures including fixed plant, machinery and underground services. While the specifics of the policy may differ depending on your insurer, common policy features include:
- Public Liability Insurance: Covering the legal liability of the Owners Corporation in the event that a 3rd party is injured or has property damaged. It’s important to note that in most cases this will not insure the liability of the unit owner, unless it relates to the property of the Owners Corporation or common contents.
- Common Contents: Covering appliances, equipment, furniture, carpets and fittings in any common area for which the Owners Corporation is responsible.
- Loss of Rent and/or Alternative Accommodation: The unit owner may be able to claim for loss of rent or the cost of alternative accommodation during the period that the premises are unfit for occupancy if the unit has become uninhabitable as a result of an insured peril.
Strata Insurance specifically excludes contents within individual units such as carpets, curtains, blinds, light fittings and electrical appliances not actually wired into the premises. These items should be insured by a separate policy such as Contents Insurance or Landlords Insurance.
Do I Need any Other Insurance Policies as a Strata Title Owner?
Depending on your circumstances, you additional covers may be necessary to fully protect your investment property and your assets.
If you rent out your property, Landlord Insurance can be purchased as a separate policy to Strata Insurance. Landlord Insurance provides insurance protection for your liability as a landlord, and can protect you, your property, and your tenants in the event of an incident.
If you are an owner occupier of a property, you can cover your furniture, personal contents, jewellery, collections and other special items with a Contents Insurance policy.
Speak to a PSC Insurance Broker for more information on your insurance obligations as a Strata Title Owner or Landlord.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
