Residential Strata Insurance is specifically designed for Strata Titled properties. Properties of this nature have specific insurance requirements that cannot be catered for under standard home policies. Having the right Strata Insurance policy is often required by relevant State or Territory legislation and especially in the event of a claim.
Citycover are experts in Strata Insurance and we urge strata unit owners and body corporate committees to consider the following points:
- Every strata building is different, and faces different risks which need to be taken into account when considering Strata Insurance cover.
- Strata insurance policies vary, and care needs to be taken to ensure the insurance policy matches the needs of the property.
- The amount of cover (the sum insured) needs to be adequate and appropriate for the building and its risks, or the strata owners could be significantly out of pocked if a major loss occurs.
- In order to determine the correct amount of cover, the body corporate committee must obtain a full building valuation at least every 5 years (or as often as may be required by local legislation). The limit of cover should also be reviewed each year (in between valuations) to take account of inflation in the cost of building and repairs.
- The high cost of strata insurance in North Queensland is driven by the risks faced in the region – insurers have paid out $1.40 in claims for every $1 received in premiums in North Queensland in recent years, according to a Government Actuary report in 2014.
- Cheaper strata insurance cover bought directly could well be a false economy if it means you’re not properly covered in the event of a loss or claim.
What can Strata Insurance cover?
- Building/Common Contents: Covers loss or damage to insured property, including damage caused by cyclones, storm surge and floods. It is important to note however, that flood is not automatically included.
- Legal Liability: Covers up to $20 million legal liability arising out of your ownership.
- Personal Accident (Voluntary Workers): Offers a loss of income benefit to a voluntary worker insured whilst working for you in an unpaid capacity.
- Fidelity Guarantee: Protects body corporate funds against embezzlement or fraud by a committee member.
- Office Bearers Liability: Provides protection for office bearers held legally liable for wrongful acts, such as providing property managers with incorrect instructions or failing to exercise due care when negotiating on behalf of the unit owners.
- Catastrophe Cover: Following a significant event that causes widespread property damage, it is common that building costs increase, with the result your building sum insured may then prove inadequate.
Contact Citycover for expert advice on Strata Insurance on (07) 3270 1500. Choosing the right cover for a Strata Title building can be difficult and confusing which is why we are here to help.