Strata insurance Explained
Strata insurance is insurance that the owner’s corporation (also known as the body corporate) is obliged to take out to cover the building, common property and common area contents of a strata scheme.
Insurance is available for both residential strata and commercial strata properties. It is mandatory to hold strata insurance that conforms to each state’s relevant legislation in Australia.
What does strata insurance typically cover?
Strata insurance typically covers common area contents, the building and shared property in the event of loss or damage. Generally, events like theft of common area contents, repairs to damaged property managed by the owner’s corporation and the cost of recovery if disaster strikes are also included in strata insurance. It is also compulsory for strata insurance in all parts of Australia to provide liability coverage in the event that people are injured on common property.
Who is Strata Insurance managed by?
Strata insurance is usually managed by a strata manager, property manager or unit owner who’s been asked to manage the policy and cost on behalf of all the owners. The term differs depending on which state you’re in. Your building may already be insured if your property is part of strata or another group scheme. It’s worth checking.
What if I don’t have a strata manager or property manager?
If you’re the owner of a unit in a complex, it’s likely that your building is managed by a body of some sort already. If you’re not sure, check with the real estate agent that you bought the property through or do strata or another title search of the building.
If you own a property that isn’t managed by a body – for example, if you have one of two properties that only share a driveway – you’ll need legal advice about whether you need to set up an appropriate body with your neighbour.