Insurance on unit/apartment with body corp

[adam73021]

I am potentially looking at purchasing a unit/apartment as an IP, this particular property has a body corp. I've been told that body corp generally incorporates some sort of insurance that covers the building and that I won't require "full" insurance per your average suburban house. I presume that whilst i'll be paying the body corp fees there will be some sort of saving insurance wise vs a house.

Is anyone able shed any light?

Thanks,

 

[jerrybee]

I think the only insurance you need for an apartment is landlords insurance. But I could be wrong.

 

[brettc]

I am potentially looking at purchasing a unit/apartment as an IP, this particular property has a body corp. I've been told that body corp generally incorporates some sort of insurance that covers the building and that I won't require "full" insurance per your average suburban house. I presume that whilst i'll be paying the body corp fees there will be some sort of saving insurance wise vs a house.

Is anyone able shed any light?

Thanks,

Essentially the Body Corporate policy will cover the building structure, walls, ceilings etc., as well as liability for common areas such as hallways, grounds, carpark, driveway etc.

At the very least you need a Contents policy that will cover your carpets, curtains, blinds etc. against defined risks such as fire, storm, water damage, it will also include public liability cover for incidents that occur inside your unit. A better option is a landlord insurance policy which will incorporate all those things as well as most tenant-related risks such as default of rent, broken leases, denial of access, malicious damage by tenants, accidental damage (with the better policies), and theft by tenants. As well as quite a few other features.

This type of policy can generally be obtained cheaper than you would buy a straight contents policy for. Let me know if you need any further details.

 

[marg4000]

Check carefully what the body corporate policy covers.

Some only cover the actual walls etc. The internal fittings, kitchen, bathroom etc are the responsibility of the owner.
Marg

 

[brettc]

Check carefully what the body corporate policy covers.

Some only cover the actual walls etc. The internal fittings, kitchen, bathroom etc are the responsibility of the owner.
Marg

It certainly can vary. As a general rule (in regard to the building) the Body Corporate policy will cover the original kitchen and bathroom fitout as shown on the original BUP, but if it has been renovated at some stage and a new kitchen (for example) put in it is likely to be the landlord's responsibility. But there are exceptions to this so worth checking.

Items such as carpets, curtains, blinds, light fittings, door knobs, internal paintwork etc. remain the landlord's responsibility.

The good part is most decent landlord insurance policies will include at least $50,000 for the landlord's "contents", so it is generally covered if insured correctly.

 

[adam73021]

Thanks for the responses guys.

 

[bsteve]

At the very least you need a Contents policy that will cover your carpets, curtains, blinds etc. against defined risks such as fire, storm, water damage, it will also include public liability cover for incidents that occur inside your unit. A better option is a landlord insurance policy which will incorporate all those things as well as most tenant-related risks such as default of rent, broken leases, denial of access, malicious damage by tenants, accidental damage (with the better policies), and theft by tenants. As well as quite a few other features.

This type of policy can generally be obtained cheaper than you would buy a straight contents policy for. Let me know if you need any further details.

Just wanted to ask if landlord policy includes public liability.
As some online articles suggested e.g. http://www.propertyobserver.com.au/...rty-management/26754-oct-11-ask-margaret.html

 

[brettc]

Just wanted to ask if landlord policy includes public liability.
As some online articles suggested e.g. http://www.propertyobserver.com.au/...rty-management/26754-oct-11-ask-margaret.html

Yes as a general rule landlord policies will include public liability insurance. The amount will vary, generally $20 million, RentCover policies include $30 million.