28 Jan Strata Insurance: Are you really protected?
Strata Insurance: Are you really protected?
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 underinsurance.
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:
What is covered by contents or landlords insurance?
Contents will cover your household and personal possessions, such as clothing, jewellery, furniture, TV, carpets and electrical appliances. It covers the cost of repairing or replacing these possessions in the event of loss or damage. Landlords insurance will also cover loss of rent if the tenants leave without paying their rent or if the unit becomes unfit to be occupied.
A very important component of landlords and contents insurance is what’s called legal liability cover. Legal liability cover protects you against financial loss if your actions, negligence or the condition of your property is found to cause a person to be injured or killed.
It’s important you read the residential strata policy purchased by the owners corporation to understand what is and is not covered inside your lot/unit so you can take out the appropriate content or landlords cover. Insurance on these items is the responsibility of the owner or tenant and not part of the residential strata insurance policy.
CHU is one of Australia’s largest and most awarded underwriting agencies. If your residential strata insurance is managed by CHU you receive these additional benefits:
- Save on your excess payment: if CHU insures your building and you and the body corporate / owners corporate make a valid claim for the same incident.
- Speedier repairs: If your personal property and building is damaged in the same incident, your property will be repaired or replaced quicker.
^ Estimate based on CHU Assess claims
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