STRATA PROPERTY INSURANCE
WHAT IS IN A TYPICAL STRATA PROPERTY INSURANCE POLICY?
A Strata policy needs to provide Building and Legal Liability insurance as essential cover. In addition to this, a Strata policy can also provide insurance cover that is not included under a standard Home and Contents insurance policy as outlined below.
Insures the building which includes any structural items along with any fixtures and fittings. This figure should include demolition and removal of debris costs.
Insures any items that are owned by the strata e.g. furniture, artwork, gym equipment and appliances.
Personal contents are not typically covered under this section, it's recommended to insure these under a separate personal contents policy.
LOSS OF RENTAL INCOME/TEMPORARY ACCOMMODATION
Ensures the owner still receives rental income (if rented to a tenant) or is provided alternative accommodation (owner occupied) whilst the premises are uninhabitable due to property damage.
Covers escalation of rebuilding costs that occur due to catastrophic events e.g. Storm, Cyclone, Flood.
Covers third party property damage and personal injury legal costs which the strata are liable for.
OFFICE BEARERS LIABILITY
Covers legal/liability costs that are a result of an alleged or wrongful act, omission, or breach of duty by the owner’s corporation, cover may be extended to the strata manager, depending on insurer.
This insurance covers the strata company for the loss of funds due to fraudulent misappropriation of strata company funds, including embezzlement.
Insures against physical damage to electrical, hydraulic and mechanical items e.g. lifts, elevators and chiller units - cover does not extend to wear and tear/failure due to lack of maintenance.
LOT OWNERS FIXTURES AND FITTINGS
This coverage is for fixtures and structural improvements installed or upgraded by lot owners for their exclusive use.
Covers voluntary workers against injury, inability to work, or death as a result of an accident which occurs while undertaking voluntary work for the strata company.
GOVERNMENT AUDIT COSTS
Covers limited professional costs in appealing against an improvement or prohibition notice brought under any workplace, occupational health, safety, or similar legislation.
LEGAL DEFENCE COSTS
Covers the strata company’s legal defence costs where strata company is in litigation (action is brought against the strata) with another party.
Indemnifies the strata company should any contractor, part-time or full-time employee injure themselves while carrying out the services at the strata - if the worker has no WC cover then liability may fall back onto the strata company.