Strata Insurance
“As a [strata] owner, you also have a share of an unlimited liability for anything that goes wrong, which is why strata insurance is compulsory in every state and territory.”
Strata Community Association
What is Strata Insurance?
If you own a townhouse, unit, or apartment and you’re sharing common space with others, you don’t want to be left to foot the bill if there’s damage to shared parts of the building or items. Strata insurance protects the building and common areas or facilities, with the premiums paid for by the owners’ corporation.
Who Should Consider Insurance?
Strata insurance is compulsory in every state – so if you’re part of an owners’ corporation in a townhouse, unit, flat, apartment or duplex, the owner’s corporation will need strata insurance. An insurance broker can arrange strata insurance on behalf of the owners’ corporation.
What Usually Isn't Covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for: • Asbestos or asbestos derivatives • Erosion or earth movement • Certain property features such as fencing • Contents within apartments.
The number of apartments in Australia is increasing – with a 30.6% rise in apartment approvals predicted in November 2017.
What Can It Cover?
Strata insurance can cover the building and all common or shared property, and contents which belong to the owners’ corporation. The type of cover and its cost will depend on the kind of building, where it’s located and the amount of common property you share.
Compulsory Covers
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Building and common contents
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Public liability
Optional Covers
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Personal accident for voluntary workers
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Office bearer’s liability
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Fidelity guarantee
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Mechanical and electrical breakdown