When you possess a home that shares common property, things surely turn complicated. If outdoor areas or outdoor items or any part of buildings are damaged, you need to ensure you have cover in place.
This is the reason why Strata Insurance – related to the owners’ corporations or body corporates – covers residential buildings within a complex and its common areas such as driveways, garages, and swimming pools. You can similarly add cover for common contents, such as washing machines and lawnmowers.
Strata Insurance is a lawful prerequisite and typically the obligation of the strata title proprietors, with the cost split between the individual unit proprietors. On the off chance that you live in one of the following, chances are that you need Strata Insurance.
Commercial and Residential Strata Insurance is designed to protect the specific needs of Commercial and Residential Body Corporates and Strata Plans, covering such things as:
- Car parks
- Common area contents
- Fidelity Guarantee
- Loss of rent / temporary accommodation
- Office Bearers’ Liability
- Shared Gardens
- Swimming Pools
- Voluntary workers
- Workers’ Compensation
There are additionally a few things that are not secured by strata insurance, such as fencing or flood damage etc. Strata insurance similarly doesn’t cover the tenant’s/owner personal belongings. It’s advisable that you go through the policy documents thoroughly or seek advice from a professional to make sure that you and your property are adequately covered.
The total expense of strata insurance is usually split between the owners of the strata units. These expenses are normally discussed between the insurer and the strata company. This is then showed to the owners after an excess and insurance premium is calculated. These costs rely upon several factors such as (1) the age and latest condition of the building structure, (2) the risks associated with the site, (3) the claims history of the body corporate and (4) the government taxes.