Strata Insurance

As the Australian population grows, so does the requirement for high-density living, such as apartment complexes. Most of these property types are Strata Titled, which requires a particular type of insurance, in order to cover their broad range of exposures.

Strata Insurance Specialists

 

As the Australian population grows, so does the requirement for high-density living, such as apartment complexes. Most of these property types are Strata Titled, which requires a particular type of insurance, in order to cover their broad range of exposures.

As most Strata properties (Residential and Commercial) have shared common property, such as driveways and plumbing, it is necessary to have an insurance policy that covers the entire asset.

A Strata Property is not only comprised of a building and common property, there is also a Strata Corporation (or Committee) who oversee the strata complex and protects the rights and interests of the owners. These Committees also have legal liability exposures, much like a company board of directors. Thankfully, all Strata Insurance policies have a section tailored to provide protection for these legal liabilities.

 

Here is a brief summary of the various coverage sections within a Strata Policy:

Property: Covering damage to the building and common property, plus the loss of rent incurred, due to the damage caused.

Voluntary Workers Personal Accident: In the event that an individual is injured whilst working on the property and they do not meet the requirements of Workers Compensation Insurance, this section will pay a weekly amount for their lost wages and also a nominal amount for a permanent impairment or death.

Office Bearers’ Liability: This section protects the legal liability of the Committee following a wrongful act by one of the Committee members.

Fidelity Guarantee: Should someone from the Committee steal funds from the Strata, this section will provide compensation for the amount lost, as per the terms of the policy.  

Equipment Breakdown: Provides protection against breakdown of electrical and mechanical items, such as elevators and air conditioners.

Public Liability: This section provides cover if a member of the public is injured, or if property damage occurs on the property, due to the negligence of the strata.

Legal Expense cover: Covers the legal defence cost for matters brought against the Body Corporate, such as a regulatory audit or workplace health and safety breach.

 

 

What is not included in a Strata Insurance Policy?

Any unique finishing or improvements made, for example, a marble bench top.

Certain contents items may also be excluded, such as curtains and carpets.

Is Strata Insurance a legal requirement?

Each State and Territory has their own unique legislative requirements that govern strata title properties, however they all require a strata complex to have strata insurance.

 

Whether you are a Strata Owner or Strata Manager, it is important that you have the greatest level of cover for your Strata Complex. Please feel free to reach out to one of our Strata Insurance Consultants today.