Strata Insurance Tips For Property Owners
For new owners of strata titles, strata insurance can be confusing. It is easy to assume that the body corporate has you covered in that regard but that is not always the case. You need to know the extent of your coverage and what is not covered. This will protect you against potentially costly damage. Montano Strata Management is a strata management company with a difference, we can help you deal with virtually any strata issue that you may have.
To find out more about strata insurance, read on!
⦁ Who pays for strata title insurance?
Strata insurance is a legal requirement under the Strata Scheme Act. Each owner of the strata scheme contributes to the payment of the strata title insurance. This is done by paying quarterly levies to the body corporate. These pooled funds are then made available for the payment of the strata’s insurance. Even though the strata insurance is paid for by all the owners of the strata, their individual contributions may differ depending on the value of their property in the strata.
⦁ What does strata insurance cover?
Strata insurance covers shared or common property in a strata-managed complex, owners’ corporation or body corporate-managed complex. Generally this covers external areas such as balconies, common-area gardens and barbeques, pools and tennis courts, intercoms and garages. In case there is any damage to the property or if things are destroyed in a fire, floods or burst pipes, the strata must be covered for its full value. The body corporate can decide to extend the insurance from the basic coverage so that it covers third party liability and the cost of alternative accommodation in case any unit becomes unhabitable.
⦁ What does strata insurance NOT cover?
While strata insurance covers shared and common property, it is important that you know that there are parts of your residence that you will need to cover yourself. This is where owners need to ensure they have their own insurance cover for the contents within the property. Generally speaking, items that aren’t covered by strata insurance include internal fittings and fixtures, lights, carpets, floorboards, furniture, electrical items, jewellery and other personal belongings.
⦁ Other Insurance Cover
Investors in strata schemes may also want to take out landlord insurance. Landlord insurance is a policy that covers you against events such as loss of rent due to a tenant’s rent default, the theft or burglary of any belongings you have leased to your tenants, and natural disasters such as storms.
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’s qualified team today.