Strata insurance is one of the most important things you can have as a strata property owner. It protects your property and your neighbours’ properties in the event of damage or destruction and can even cover the costs of legal liability if someone is injured on your property.
But with so many different types of strata insurance policies available, it can be difficult to know which one is right for you. In this quick guide, we’ll help you understand the basics of strata insurance so that you can make an informed decision about which policy is best for your needs.
What is strata insurance?
Strata insurance is a type of insurance specifically designed for strata titled properties, such as units, townhouses and apartments. It covers the building itself, as well as common areas and any contents owned by the strata corporation.
Strata insurance is different from home and contents insurance, which only covers your personal belongings and not the structure of the building itself. It’s important to have both types of insurance if you live in a strata property, as they cover different risks.
What does strata insurance cover?
Strata insurance typically covers damage to the building caused by events like fire, storms, theft or vandalism. It can also cover the costs of legal liability if someone is injured on your property and decides to sue the strata corporation.
Some policies also provide cover for loss of rent if the property is uninhabitable due to damage, and for the costs of alternative accommodation if you need to move out while repairs are being carried out.
What doesn’t strata insurance cover?
Strata insurance generally doesn’t cover damage caused by normal wear and tear, or any maintenance issues that should have been fixed by the strata corporation. It also doesn’t cover your personal belongings, so you’ll need home and contents insurance for that.
How much does strata insurance cost?
The cost of strata insurance depends on a number of factors, including the size and location of the property, the type of cover you choose and the excess amount you’re willing to pay. Most strata corporations require all owners to contribute to the cost of insurance, so check your strata rules to see how this works in your building.
When shopping around for strata insurance, it’s important to compare policies carefully to make sure you’re getting the right level of cover at a competitive price. Don’t just go for the cheapest option, as it might not provide the level of protection you need.
How do I buy strata insurance?
If you’re a strata property owner, you’ll need to purchase strata insurance through your strata corporation. The strata corporation is responsible for insuring the common areas and any contents owned by the corporation, and all owners are required to contribute to the cost of this insurance.
You can usually choose to insure your own unit with a separate policy, but this isn’t always necessary. Check with your strata corporation to see if they have a policy that covers individual units as well as the common areas.
If you’re renting a unit in a strata property, you won’t need to purchase strata insurance as it will be covered by your landlord’s policy. However, you should still have your own home and contents insurance to cover your personal belongings.
Now that you know the basics of strata insurance, you can start shopping around for a policy that meets your needs. Make sure to compare a range of options to find the best deal, and don’t forget to check the excess amount and cover limits before you buy.