What you need to know about Strata Insurance
What is strata insurance?
Residential strata insurance is a type of general insurance which covers common property under the management of a strata title or body corporate entity. Owners of strata titles usually share the cost of the strata insurance premium as part of their strata fees and liabilities. Having strata insurance is mandatory and must also provide public liability covering people that may be injured on common property.
What does strata insurance cover?
Strata insurance covers common property as defined by the title of the property. This generally includes areas such as:
- Car parks
Much like other types of insurance, strata insurance does not cover any exclusions expressed by the policy. The exclusions of the policy vary depending on which insurer you choose. Common exclusions for strata insurance include:
It is also important remember that strata policies do not cover your contents or personal items. You will require the appropriate contents insurance if you wish to cover your belongings.
Each state and territory has different legislative requirements for insurance that deals with strata title properties. It is important that you check that your insurance meets the relevant legislative requirements.
What factors contribute to the amount of the premium?
The following factors will contribute to the amount of the cost of your premium:
- The condition and age of the building
- The replacement cost of the building
- Commercial activities that are carried out on the premises
- The costs of common property
- The location of the building (for example cyclone prone areas are more expensive to insure)
- Government taxes on insurance (stamp duty and GST)
- The claims history of the strata complex
The lawyers here at The Quinn Group can help you with all your strata needs. If you have any questions or need advice, please do not hesitate to contact us on (02) 9223 9166, or submit an online enquiry.