What Is Strata Insurance All About

 

If you are a strata owner, but the driveway, roof, or foyer belongs to the owners, who will cover the costs of the repair, clean-up, and other related expenses? Strata properties have specific insurance requirements that do not fall under the standard home policies. This is when you need to talk to an online insurance broker regarding strata insurance. The broker can help make the process seamless when you have a claim and ensure you are covered properly.

 

What Is Strata Insurance?

Strata insurance policy covers the common property of a strata title property. For example, the driveways, car parks, lifts, walls, roofs, and other shared areas on the premises. It also includes the fixed parts of the unit such as the bathrooms and kitchens. However, there are exceptions to this if you do some upgrades.

 

In addition, strata insurance covers public liability for individuals visiting the property or working onsite. For example, if your owners’ corporation is repainting the building exterior and the painter gets injured, the policy will cover the cost of a claim.

 

Your online insurance broker will tell you to purchase strata insurance if you own a strata property. The cost of the premium is divided among owners.

 

Claims Covered by Strata Insurance

Strata Insurance is typically considered a broad-spectrum policy. While a strata insurance policy may not indicate what is covered, it will specify the exclusions in the policy, indicating what is not covered. Here are some strata insurance claims that are generally accepted:

 

Fire damage

Accidental damage

Storm damage

Impact damage

Malicious damage

Water damage

 

Moreover, there are some uncommon claims that have been covered by this policy, such as:

 

Cleaning of a unit following the removal of a cadaver

Repairs after a forced entry from emergency services like ambulance, police, etc.

Flood

                           

How Much Does Strata Insurance Cost?

You can talk to your online insurance broker regarding the cost of your policy, but the premium for your strata insurance is typically based on:

 

The purpose of the building.

The age and condition of the building, including any existing defects.

The types of common property it covers, with gyms and swimming pools increasing the cost unlike a bare-bones complex.

The location. For example, flood risk areas are riskier for insurance companies, so they tend to increase the premiums.

 

Who Can Claim Against Strata Insurance?

What happens if there is a problem in your unit, for example, a leak from the hot water system? Get in touch with an online insurance broker to tell you whether the issue is covered under your policy and how to claim.

 

Basically, you can go to your broker and make a claim in case the executive committee refuses to pay for the damage themselves or to make a claim.

 

Note that the owners’ corporation is responsible for the building insurance excess unless the responsibility has been transferred to the unit owner through a regulation. For this, some executive committees may offer to pay for the damages directly by the owners’ corporation instead of using the strata insurance. But they cannot stop a claim made by a member of the owner’s corporation.