The 3 types of insurance strata property owners will need

Each type of insurance covers a different area or aspect of strata property ownership

If you live in a strata property, you’re likely aware of what it means to share the joy – and burdens — of community living. One thing that can really make a difference when burdens come your way is comprehensive strata insurance.

Strata property owners typically share the premium costs of strata insurance and contribute to these through strata levies. Strata insurance is mandatory and must also include public liability covering people that may be injured on common property.

Keep reading to learn which specific types of strata insurance strata property owners should take out.

PICA_BANNER_PromotionalBanner_PICAPlatform_StrataFinancialsGuide_700x135pix

If you live in a strata property, it’s wise to take out comprehensive strata insurance to protect your investment. Here are the three main types of insurance you should consider:

Strata insurance
Contents insurance
Landlord insurance

1. What strata insurance cover do I have?

Residential strata insurance typically covers common contents and common property under the management of a strata scheme. This type of insurance doesn’t cover the contents and personal items belonging to owners or residents.

Importantly, many strata insurance providers offer additional add-ons for extra cover. Which these may add to your insurance premium, the extra protection will offer peace of mind, and extra assistance should something go wrong. Here are add-on policies we recommend your consider.

Office bearers liability: Covers wrongful acts by the committee or manager, including legal representation.
Fidelity guarantee cover: Covers the event of loss of funds through fraudulent activity.
Catastrophe: Australia has a history of extreme weather events. Catastrophe insurance can cover your replacement costs due to natural disasters like bushfires, earthquakes, floods and cyclones. It is best to check the insurance policy for the coverage of your property, definitions, inclusions and exclusions, or ask your strata manager.

Machinery breakdown: Elevators are expensive to fix! Cover includes machinery on common property such as air-conditioning, water pumps, door/gate motors, boilers and pressure vessels.
Personal accident/voluntary workers cover: Covers voluntary workers responsible for duties in your scheme or the event of serious accidents resulting in a permanent injury or unforeseen death.
Government audit costs: Covers audit costs, as well as legal defence and appeal expenses.

PICA Group customers who need help sourcing comprehensive strata insurance can make the most out of CommunitySure, our strata insurance service.

2. Contents insurance

Strata insurance only covers common property, common areas and commonly-owned contents but doesn’t cover anything within a personally owned lot of unit. That’s where contents insurance comes in.

Contents insurance covers household and personal possessions such as clothing, jewellery, furniture, computers, art, electronics and white goods belonging to you in the event of loss or damage.

3. Landlords insurance

If you rent out a unit in a strata building, it’s wise to take out landlord insurance. It provides cover for accidental loss or damage to contents in your unit from events such as fire, flood or storms. Additionally, it covers you and your property for malicious damage to contents/buildings caused by tenants and/or their guests. It can also help you cover the risk of your tenant failing to pay rent.

While strata properties are a good long term investment, it’s important to do everything you can to protect that investment. That’s where strata insurance comes in. By taking out comprehensive strata insurance, contents insurance and landlord insurance policies, you can rest assured knowing your property will be covered in the event of damage, loss or a natural disaster.

We offer our customers strata insurance policies for common property at a competitive price through CommunitySure, which is backed by QBE and CHU, and is one of Australia’s largest strata insurers. For a consultation to review your common property insurance or to find out more on our related services, click here.

You can also click here to download our FREE Community Living guide series on defects. If you would like to learn more about the services we offer, click here for a free assessment.