Buying a strata property is something homeowners old and new should try at least once. It’s a great way to get the advantages of homeownership, whether a unit or apartment, with the benefits of additional facilities.
These facilities, collectively termed “common property,” can include swimming pools, gyms, gardens, and other entertainment areas. However, you don’t solely own the public facilities. You share ownership among the other residents of the property.
Sharing a common area with other members of your community means sharing the responsibilities involved in its upkeep as well. These are some of the obligations of being a strata property owner.
Strata homeowners enjoy many benefits from their joint property. However, those comforts come with specific duties, particularly its management, repair, and improvement. You’ll work together with the body corporate, an organisation that comprises all the property’s lot owners.
If needed, body corporate can also employ the services of a strata manager, who can handle the majority of the financial requirements of the property. Whether you have a strata manager or not, individual lot owners will need to pay levies as a form of contribution. This amount can vary depending on what body corporate determines what fees are necessary for the property.
Strata insurance is one of the purchases body corporate is required to make. It’s designed to protect the shared assets of the property and keep lot owners from paying for unexpected damage by themselves.
Many factors can affect its price, from the property’s condition to the risk profile of its location. The commercial activities that occur on the premises is another element to consider. It usually amounts to the same or less than solo home insurance when divided among the lot owners.
What Does It Cover?
The coverage of strata insurance depends on its provider. Its usual range includes the property’s building and common areas. Premium insurances have more inclusions, such as mechanical and electrical breakdowns or government audit costs.
No matter how extensive your strata insurance is, there are some things it will not cover. Standard exclusions are coverage against landslide or flood damage. It also doesn’t cover individually owned properties, such as internal fixtures or personal belongings.
What Other Insurances Do You Need?
As mentioned, strata insurance doesn’t cover personal property. You might want to consider purchasing home insurance as well. Content coverage is good for protecting your furniture and clothing, while property damage coverage is suited for protection against natural disasters.
If you plan to rent out your property, you might want to consider buying renter’s insurance as well. Its usual coverage includes personal belongings, liability, and additional living expenses. It has the additional benefit of making your property more appealing to prospective tenants.
Being a strata property homeowner comes with many advantages and disadvantages of its own. Often, the additional fees and responsibilities can feel overwhelming to the unprepared. But it doesn’t mean you have to deal with it alone.
That’s why lot owners hold general meetings from time to time to keep the community members on the same page. While attendance isn’t required, you should still try your best to attend. If you cooperate with your fellow lot owners and pay your due fees, the challenges that come with managing a strata property are sure to become easier over time.
If you’re looking for a strata insurance provider on the Gold Coast, why not consider having New Wave Insurance to help you? We have extensive experience finding the right insurance for individuals and businesses alike. Besides providing unbiased insurance options to our clients, we also offer exclusive products you can’t always access directly. If you’re interested, make sure to book a free consultation with us today!