All You Need To Know About Strata Insurance
Building insurance, strata insurance and contents insurance, are they the same thing and do you need just one or all three? This is a question that many strata owners have, and we are here to give answers to just that. Strata insurance is not just a convenience, it is a must have for all body corporates. What is covered by the strata insurance and what isn’t depends on the type of policy that is taken by the body corporate. To find out more about strata insurance, read on…
1. Building insurance, contents, and strata insurance, what are they?
Building insurance is specifically for permanent structures. It is usually used by clients that have freestanding homes or any other home structure like a granny flat or a detached garage. For strata owners, this is usually unnecessary as strata insurance usually covers everything that building insurance could have covered. Contents insurance is used to cover the movable things inside your home. Furniture, art, and electronics, for example. For people that live in a strata property, this is necessary as it covers your personal contents not covered by strata insurance.
Strata insurance is a broad spectrum policy. It usually covers the following: impact damage, storm damage, malicious damage, water damage, accidental damage, and fire damage. It is important to note the exclusions that are stated in the policy which you decide to choose for your strata. Building defects are one such thing that is usually not included in strata insurance but a lot of owners try to claim for and they get denied.
2. How much will it cost and who can claim?
Premiums for strata insurance vary depending on a couple of factors. If your strata building is located in a place that is prone to natural disasters such as bush fires or flooding, this will increase premiums. The age and state of the building also factors into the cost of the monthly premium particularly where regular repairs and maintenance has not been done over the years. The additional features of a property such as swimming pools, tennis courts etc will increase the price of the premium.
When you want to lodge a claim, you need to speak to your strata manager. They know your policy back to front and will be able to advise you on the next steps. Some issues are better dealt with by the owners’ corporation instead of claiming insurance on them. In such a case, the strata manager can start the correspondence with the owner’s corporation on your behalf. If such a claim is denied by the owners’ corporation, you may have to go directly to the insurer and claim yourself.
Do you have any questions regarding residential and commercial strata management? Are you looking to switch strata managers? Not altogether satisfied with the information you’ve been getting from your current strata managers? Don’t hesitate to contact Montano Strata Management’s qualified team today.