The truth about strata insurance – busting some common myths and assumptions.
Owners of townhouses, units, apartment, or even commercial businesses within a strata building must work together to ensure their common property and shared facilities are adequately insured.
The cost incurred by an unexpected event or accident could be astronomical to owners if it is not covered by strata insurance.
The following article busts some common myths about strata insurance, as well as shedding light on common assumptions owners make about what is covered and how much cover they need when it comes to strata insurance.
Strata insurance is optional – False – it is mandatory across Australia
Across all states and territories in Australia, strata insurance is compulsory, and owners must legally take out a strata insurance policy for their strata property. There are some very small, two-unit complexes that may be exempt, however, best to assume it is compulsory.
Strata insurance protects my personal contents – False – personal contents are not covered by Strata Insurance
Flex residential strata insurance covers the building, common property and common area contents of your strata scheme. Residential strata building insurance policy ends when you cross the threshold of your individual property. You’ll need a separate contents or landlords’ insurance policy to protect your personal belongings and protect you against legal liability or damage to another person’s property within your unit.
Strata Insurance is expensive – False – the overall cost is shared between all the unit owners
The cost of strata insurance is shared between unit owners and is usually included in your quarterly strata levies. To ensure you have the right cover you could consider tailoring your cover to insure only for what you need.
All strata insurance policies are the same– False – there are variations across policies and insurers.
Like many other types of insurance, strata insurance can vary when it comes to what is covered and what is excluded. It is important to review each insurer’s policy quote and product disclosure statements to ensure you are comparing apples with apples.
With Flex Insurance, we offer the basic property and public liability cover that your state’s laws require, so you can then choose additional covers like voluntary workers, fidelity guarantee, machinery breakdown and office bearers’ legal liability.
Strata insurance will cover the rent of my property – False – rental income is not protected by strata insurance.
If you’ve purchased a strata property as an investment, you may have it rented to a tenant, this effectively makes you an owner and a landlord of the strata property. You will need a separate Landlords’ insurance policy to protect your rental income stream and protect the inside of your property in case of accidental damage by the tenant.
Choosing a specialist strata insurance product makes a difference – True
Flex Insurance are strata specialists. Our experts have up-to-date knowledge and expertise to help you tailor insurance cover to suit your property, so you only pay for the cover you need.
You can obtain a quote for your strata insurance policy online - True
With Flex Insurance, you can obtain a quote for your strata insurance online. You simply need your building address details, your owner’s corporation number and a few other details and Flex will provide you with a tailored quote, online, 24/7.
You can also approach your strata manager or insurance broker for a Flex Insurance quote.
Strata Insurance requirements vary from state to state – True
When you are organising your strata insurance, whether it be via a broker or strata manager or direct with your insurer, it is important to ensure that your cover complies with your local State or Territory legislation.
Strata laws NSW
Strata laws VIC
Strata laws QLD
Strata laws SA
Strata laws WA
Flex Insurance can be tailored to suit your needs and local requirements.