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.
Covers third party property damage and personal injury legal costs which the strata is liable for.
LOSS OF RENTAL INCOME
Ensures the owner still receives rental income whilst the premises are uninhabitable and under repair due to property damage. This figure should also include outgoings on the policy.
This cover ensures rental income plus outgoings are received during the indemnity (rebuild) period selected - recommended to be no less than 18-24 months, depending on property size as you need to consider the time for demolishing, removal of debris, rebuild (local authority processes) and releasing.
EXTRA COST OF REINSTATEMENT
Covers over the cost of any upgrade to a building that a council or statutory authority may impose on the insured following a loss e.g. an old design updated to meet modern safety standards.
CLAIMS PREPARATION COSTS
Covers the costs to prepare for a claim which can extend to engaging a claims expert to advocate on your behalf, unlocking the full policy benefits should a serious loss occur.
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.
This is often covered under the Tenants policy as per the lease agreement, but always check. It covers the replacement of any internal/external glass items e.g. shop windows or displays.
Not always relevant to property owners,this covers the theft of any items through forcible entry.