Strata Insurance vs Regular Insurance Question

[Ronulas]

Hi all,

Posting this question on behalf of my boss who has just purchased a unit in a block.

He asked me if his strata insurance would be enough cover, thus avoiding the extra expence of regular insurance.

My advise from previous reads was that his strata insurance would only cover certian things in the units like building structure, windows ect.

After contacting a regular insurance company he was told they would not insure him and that the strata insurance should do the job.

Is this correct?

Obviously he will have to check what his strata insurance covers but what are the experiences of other unit owners?

Thanks in advance

 

[duncan_m]

Is this correct?

Yes.. the Insurance Cover that should be held by the strata group will cover him for everything that a normal building policy covers (because thats what it is).

On my units I also carry "strata owners insurance" which is a little policy that covers me in the event that the Strata Group has failed to keep their policy current, or they are underinsured, or repairs take a very long time.. CommInsure provide me these policies, I dont recall the exact cost.. maybe $100pa or thereabouts.. Worth considering if the Strata Group appears badly run..

 

[Stewie]

By strata insurance I presume you mean the insurance purchased through the body corporate? If so, then you are correct in stating that this type of insurance is limited to covering the main structure of the building and any community areas.

Additional insurance can be purchased to cover curtains, carpets, dishwasher etc contained within the unit that are not deemed to be structural, as well as covering willful damage to the property by the tenant. Furthermore, this insurance can include (at addititional cost) insurance against the tenant doing a 'runner' without paying the rent, and, probably most importantly, it will provide 3rd party cover in the event that a subcontractor is injured/killed whilst on your property.

I would suggest your boss should have a look at what cover his strata insurance provides (contact the body corp) vs the additional insurance provided by an insurance company (have a look at www.aami.com.au for example). He/she then needs to decide if they are happy with their current level of cover or whether they should 'buy' some more.

I own a duplex and pay for the additional insurance. In the grand scheme of things it is small beer and helps me sleep at night!

 

[Rixter]

Additional insurance can be purchased to cover curtains, carpets, dishwasher etc contained within the unit that are not deemed to be structural, as well as covering willful damage to the property by the tenant. Furthermore, this insurance can include (at addititional cost) insurance against the tenant doing a 'runner' without paying the rent, and, probably most importantly, it will provide 3rd party cover in the event that a subcontractor is injured/killed whilst on your property.

Yes, this is commonly referred to as Landlord Protection Insurance.
IMHO its a must have insurance that provides SANF. Provides me protection for up to $50k contents as well as what Stewie above has already stated. For as little as $220 per year its well worth it & its tax deductable

Cheers

 

[gooram]

... and landlords insurance applies regardless of the title type.

So essentially, insurance on strata titled complexes is equivalent to standard building insurance.

 

[Mike F]

Also the strata insurance will usually only cover public liability in common areas. If your tenant falls over and gets injured inside the unit, you may be liable if you do not have extra insurance.

Cheers

Mike F