top of page
Insurance logo dark.png
  • Instagram
  • Writer's pictureAmanda Bird

Risk Management: What Is Strata Insurance and What Can It Do

Nostradamus supposedly predicted the rise of Adolf Hitler and the death of John F. Kennedy. Whether there is truth to this, most of us do not have the capabilities to foresee the future. This uncertainty makes us fear tomorrow. But we can protect ourselves by investing in insurance policies.


We may already understand the importance of getting ourselves insured. But we might not know what type of policy to get. If this is your primary concern, do not fret! We have you covered.


Let us say that you own or rent an apartment, townhouse, condo unit or any other dwelling in a residential complex. You might be wondering a strata insurance is enough coverage. If it is not, what additional policy do you need?


What Is a Strata Insurance?


Before anything else, let us define strata insurance. Insurance companies designed the strata insurance for residential strata, group and community title properties, body corporates, owners corporations and strata managers. Normally, it covers properties within one building, complex or block of land, which includes the building(s), parking and other common areas within the lot or complex.


If you are living in such a structure, the place already has strata insurance. Let us move on to another type of insurance policy, which is building insurance. This type of coverage normally includes domestic property that is not part of the strata or body corporate.


The bigger question is, does the strata insurance include the valuables inside your home? To answer this question, please note that it will only cover the following:


  • Removal of debris

  • Legal liability

  • Temporary accommodation/loss of rent

It is necessary that you carefully read the insurance contract so that you can understand the terms. If you think the amount is not enough (or more than what is necessary), you can have the option to change it.


You should also take note that it also covers balconies, common-area gardens and barbeques, pools and tennis courts, intercoms and garages. It would also include anyone working on site on behalf of the strata insurance.


Do I Need to Know Anything Else?


You should also know that the payment of your strata insurance is shared between owners of property titles. Usually, they are included as part of the strata fees and levies.


You should also take note that laws governing this type of insurance differ from state to state. Let us take NSW strata laws. In this state, strata insurance does not include paint and wallpaper. Queensland strata do not cover air conditioning units. With this said, it is prudent to research what is covered under your state legislation.


Generally, strata insurance covers the following:


  • Building fixtures such as pipes, hot-water systems, intercoms and air-conditioning units

  • Common property including gardens, lobbies, car parks, pools and stairwells

  • Common contents such as shared outdoor furniture and gym equipment

  • Public liability insurance that covers common property

Conclusion


No one can accurately predict the future. It is prudent to invest in insurance coverage to protect ourselves from all calamities. Doing this gives us peace of mind knowing that we are financially secured.


If you want to invest in strata insurance or in another form of coverage, you should seek the professional advice of New Wave Insurance. We offer a wide range of insurance policies. Contact us today and we’ll help you find one that’s right for you!


4 views0 comments

NEW WAVE INSURANCE - GOLD COAST

Copyright All Rights Reserved © 2021

New Wave Insurance Pty Ltd ABN 50 644 081 658 trading as New Wave Insurance is an Authorised Representative 001283875 of Insurance House

Pty Ltd ABN 33 006 500 072 AFSL 240954.

 

Disclaimer       Financial Service Guide      Complaints     Privacy     Code of Practice

new wave logo
EMAIL SIGNATURE LOGO LOCKUP-IHAdvance+St
bottom of page