Safeguarding Shared Spaces: The Essentials of Residential Strata Insurance and Common Area Contents

Residential Strata Insurance is essential for property owners in shared environments such as townhouses, apartments, units, and lots.

In all states and territories of Australia, strata insurance is a must.  It is mandatory for owners to secure a Strata Insurance Policy for their property within a strata scheme.

At Flex Insurance, we provide flexible residential strata insurance that can be tailored to your building's needs. This can include common area contents. residential strata insurance, covering your building and common area contents from unexpected events such as storms and theft. 

This article explores the importance of residential strata insurance in a shared or common property in a strata-managed complex, highlighting the role of common area contents insurance and its inclusions and exclusions. 

Common area contents refer to the belongings and assets owned by all residents in the strata property. This typically includes unfixed items found in shared spaces such as lobbies, gyms, or pool areas. Think furniture, equipment, decorations, appliances, and fittings. 

Strata insurance typically covers common area contents, the building, and shared property in the event of loss or damage. For example, in the event of a fire or theft of common area contents, strata insurance ensures that the financial cost of repairing or replacing these items is distributed evenly among all property owners. 

Residential strata insurance: Exploring common area contents coverage

Common area contents insurance in Australia is generally provided as a separate component from the building cover within a strata insurance policy. 

The coverage ensures protection for the shared items spaces within the strata property. Common Area Contents means:

1. furniture, furnishings, household goods, light fittings, internal blinds, curtains, fire extinguishers and the like;
2. built-in or freestanding appliances such as dishwashers, washing machines and dryers, other electrical items;
3. carpets (whether fixed or unfixed), floor rugs;
4. swimming pools or spas that are not in-ground;
5. swimming pool or spa covers and accessories;
6. wheelchairs, domestic garden equipment including lawn mowers, golf carts, golf buggies or other similar type items, but only if such item is not required by law to be registered.

Residential Strata Insurance typically doesn’t cover personal belongings or items owned by individual residents in common areas. 

While Residential Strata Insurance extends coverage to common property and shared assets, it's crucial to recognise that individual unit owners are usually responsible for safeguarding their private spaces and personal belongings. 

They are encouraged to have appropriate contents cover to protect their belongings and fixtures.

Insured incidents: What strata insurance in common areas protects against

Strata insurance in common areas provides vital protection against various incidents to safeguard shared spaces within residential communities. This coverage typically includes protection against risks like fire, theft, vandalism, water damage from burst pipes, and natural disasters such as storms or earthquakes. 

By insuring against these incidents, strata insurance helps ensure the safety and security of communal areas for all residents.

Common area contents insurance policies

For properties with high-value contents, such as valuable artwork in common entryways or receptions, additional consideration is crucial. In such cases, it might be prudent to increase the coverage to ensure adequate protection in the event of damage or loss. Talk to us about your needs. 

It's vital to highlight that common area contents can only be insured as part of your residential strata insurance policy. . Therefore, property owners need to prioritise building insurance before considering common area contents coverage.

Securing shared spaces with common area contents insurance

In addition to getting strata insurance coverage for common area contents, there are several proactive measures that strata communities can take to enhance the security of these shared spaces. 

This may include installing surveillance cameras, access control systems, and adequate lighting in common areas to deter potential theft and vandalism.

Furthermore, establishing clear guidelines and regulations regarding the use of common areas can help prevent misuse or damage to shared assets. Regular inspections and maintenance routines should also be conducted to identify and address any potential hazards or vulnerabilities in these spaces.

Another crucial aspect of securing common area contents is fostering a sense of community and responsibility among residents. Encouraging open communication and collaboration can promote a collective effort to protect and preserve shared assets. 

Moreover, providing resources and guidance on best practices for safeguarding common area contents can empower residents to take an active role in protecting their shared spaces.

Final thoughts

By combining flexible strata insurance coverage with proactive security measures and community engagement, strata communities can effectively secure common area contents and promote a safe and harmonious living environment for all residents.

It’s in the name! – Flex Insurance provides flexible strata insurance that you can build yourself. Choose what’s covered and what’s not while still covering all the basics with our automatic inclusions. 

Get started with a fast and hassle-free online quote today!