Over the years we’ve found that strata insurance is a subject that generates a range of different responses. Some people know a lot about it, though the majority of people know very little.
We’ve been asked many different questions about strata insurance. So we thought we would compile a list of some of the questions we hear most often.
What is strata insurance?
Strata insurance (also known as body corporate cover) generally covers common or shared property as defined on the title of the property. This might include common areas, lifts, pools, car parks, gardens, wiring, balconies, walls, windows, ceilings and floors.
Is strata insurance mandatory?
Yes. Holding strata insurance is mandatory under each state and territory’s relevant strata legislation.
What does strata insurance typically NOT cover?
Strata insurance is like any other form of insurance, in that there are restrictions to the policy expressed as exclusions. Each insurer has different exclusions and policy terms and conditions.
What is the recommended level of Public Liability Insurance for a Strata property?
This varies from state to state, as different states have different statutory requirements for Public Liability insurance. It also changes from time to time. In New South Wales, for example, the minimum liability insurance statutory requirement for NSW Strata property entities increased from $10,000,000 to $20,000,000 in November 2016.
What other kinds of insurance should I have?
If you are renting out your property, you should also purchase landlord insurance. If you are living in your property, you should take out a contents insurance policy.
Where can I learn more about strata schemes?
The Strata Community Association has an in depth page addressing common questions.