Strata Insurance - commonly asked questions
Which areas does it cover?
An insurance policy held by the Strata Company to cover the building and common property. The Strata Company has an obligation to insure all its insurable assets – that is, the building and common property - for full replacement value. This should include any common assets such as pools, gyms and recreation areas, as well as common lighting and fencing. Common contents, if applicable, should also be covered, and includes carpets to stairwells or common hallways, artwork, common area washing machines owned by the Strata Company.
What types of events are normally covered?
An insurable event is anything included within the policy wording as a covered event. Generally, insurance policies cover unforeseen events such as storm damage or accidental damage. No two policies will ever be the same, therefore it is important to refer to the Product Disclosure Statement and policy wording for confirmation.
What is excluded?
It is important to understand the difference between unforeseen events and maintenance. Your strata insurance policy does not cover gradual wear and tear of the building, lack of maintenance or building defects. These are the responsibility of the Strata Company and should be accounted for when budgeting.
Do I need to arrange separate home insurance?
No. Strata insurance policies also normally include internal fixtures such as doors, stoves and tiling. These are internal to the unit, and are not common property, however, do form part of the definition of ‘building’ for insurance purposes.
What about personal contents?
Strata insurance policies do not cover personal contents, legal liability within the unit or loss of rental income (if applicable). Owners should take out their own contents or landlords policy for these items.
Is survey-strata insured in the same way?
No. If a survey strata plan is to be insured under one policy, it must list the replacement value of common property and each lot separately.