An introduction to strata insurance, and where you would need it
Strata insurance is a special type of property insurance designed for strata schemes such as apartment complexes, townhouse groups and sets of units. It covers all the common areas of a strata property, as well as the fabric of the building itself from the basement to the roof.
Almost always, the property's body corporate (owners corporation) is responsible for taking out strata insurance over its common assets. These can include:
- Roofs, guttering and roof terraces
- Balconies and windows
- Plumbing and wiring
- Floor and ceiling structures
- Stairwells and lifts
- Cellars and basements
- Communal laundries
- Managers' offices and concierge areas
- Water and sewerage connections
- Electrical sub-stations
- Entrance lobbies
- Common gardens
- Communal gyms and swimming pools
- Carparks or carports.
Strata insurance also provides cover for liability for personal injury or damage to other people's property that happens on common areas.
What types of property can get strata insurance?
Any property that is on a strata title can take out strata insurance. Often these are apartment complexes and small groups of units, but they can also include non-freehold townhouses, duplexes and homes with shared walls, low-rise boutique apartments, and eco-villages.
What's not included in strata cover?
As a general rule, strata insurance stops at the front door of each unit. That means, personal items inside the apartment, such as clothing, furniture and household appliances, would need to be covered by a contents or landlord policy. Exceptions to this can be shared walls, plumbing and electricals.
Unless already required by state law, it is possible to add on to standard strata coverage by including optional extras such as workers and volunteer compensation, catastrophe cover, machinery and motor breakdown, office bearer liability, audit fees and owners' improvements.
Flex Insurance specialises in strata insurance. We can offer standard policies that include only the mandatory cover that your state/territory strata law requires, or, using our expert underwriting knowledge, put together a policy that's tailored specifically to the needs of your property and the wishes of the strata owners. We also offer all inclusive cover, which includes all state/territory mandatory covers plus all optional inclusions for comprehensive cover.