Strata, also known as strata title, allows for individual ownership of part of a property called a ‘lot’. A lot can be an individual apartment, unit or townhouse.

A strata-titled property owner, as well as owning the lot, also shares ownership of common property – such as driveways, gardens, lifts – with other lot owners.

Underinsurance of strata properties is a major growing concern, according to CHU, Australia’s leading strata insurance specialist.

Confusion over what your strata building insurance policy covers is the main cause of under insurance.

For example,did you know that your mandatory residential strata insurance (insurance that the owners corporation have to cover the building and common property of a strata scheme) does not cover your personal property or liability within your apartment?

There is a great misunderstanding as to what is covered by the residential strata insurance. Many customers believe much of their personal contents will be covered by this residential strata policy. This is not the case and they are often left underinsured and under protected.

From CHU’s internal data more than 30% of CHU strata building claims affect personal property, including claims from water damage, natural events, fire, accidental damage, malicious damage and theft.

A separate contents or landlords’ insurance policy is vital to protect your personal belongings, as well as protecting you against legal liability or damage to another person’s property within your unit.

Whether a renter/tenant or lot owner, it’s important you have a clear understanding of what residential strata insurance covers and what landlord and contents insurance does cover so you can fully protect yourself and your personal belongings. To avoid confusion between which items are insurable under the policies issued by CHU, we have provided some guidance.

What is covered by your residential strata building insurance?

Residential strata insurance provides general insurance cover for the building, shared or ‘common’ areas, common property and common area contents and legal liability in common areas.