Strata owners often get confused about their insurance needs, especially those new to strata living.
This confusion can place them at risk of being underinsured or worse, not being covered.
One common misunderstanding is owners believe their personal contents will be covered by their strata building insurance policy. It’s not. It is important to have clear understanding of residential strata insurance vs personal contents and landlords insurance.
Whilst there are often slight differences and variations for each state the main message is to be aware of the differences so strata owners can fully protect themselves and their personal belongings.
We invited one of Australia’s leading strata insurance specialists, CHU, to provide some guidance on what is covered by its residential strata building insurance, personal contents and landlords insurance policies.
As a special offer to our readers, receive 3% off CHU Contents insurance and/or 5% off CHU Landlords insurance.
Residential strata building insurance
Provides general insurance cover for the building, shared or ‘common’ areas, common property and common area contents including:
Residential Strata
Insurance Plan*
Building:
- Refers to all buildings and underground services erected upon the building block forming the Strata Plan, including fencing as well as all permanent fixtures and fittings within a Lot.
- Baths | toilets | shower screens
- Hand basins | sinks | fixed tiling
- Ducted air conditioners
- Windows | doors | built-in cupboards | floating floors
- Stoves
- Paintwork | wallpapering
- Public light fittings
Common area contents
- Carpets | floating floors | other temporary wall, floor and ceiling coverings within hallways and lobbies
- Pot plants | mirrors | decorations within common areas
- Appliances such as washing machines and dryers owned by the
- Owners Corporation and used by all unit owners and housed in common laundries
- Barbeque equipment, gardening equipment and garden or indoor furniture
* Cover based on CHU Residential Strata Insurance Plan – please check your residential strata building insurance policy as cover may differ.
Contents insurance
Provides cover for your household and personal possessions within your lot such as clothing, jewellery, carpet, furniture and electrical appliances. It also covers the financial cost of repairing or replacing these possessions in the event of loss or damage.
Contents Insurance for Strata*
- Carpet | floating floors | other temporary wall, floor and ceiling coverings
- Light fittings
- Curtains | blinds
- Household appliances such as dishwashers, refrigerators, washing machines and dryers
- Personal equipment and valuables such as jewellery and watches
- Clothing
- Furniture
- Entertainment equipment such as TVs, stereos and devices
* Cover based on CHU Contents Insurance for Strata – please check your contents insurance policy as cover may differ.
Landlords insurance
Landlords Insurance for Strata* covers owners who rent out their property, such as a unit, apartment or villa to tenants and protects them against loss or damage to their investment property.
It provides cover to personal items including carpets, light fittings, curtains, blind and washing machines against accidental damage, theft, burglary, or malicious damage caused by tenants and guests.
Landlords insurance also provides cover for loss of rent if the tenant defaults, leaves unexpectedly or if the property becomes unfit to be occupied.
* Cover based on CHU Landlords Insurance for Strata – please check your contents insurance policy as cover may differ.
Consider your insurance needs carefully
It is important to understand that the residential strata building insurance policy ends when you cross the threshold of your individual property.
When considering purchasing your own insurance, think about what is within your apartment and weigh up the potential risk of not insuring those items.
Just don’t be disillusioned thinking ‘it will never happen to me’. Ask any strata manager, the nightmare stories of residents suffering as a result of not having adequate cover are very real.
Special offer to our readers
As a special offer to our readers, receive 3% off CHU Contents insurance and/or 5% off CHU Landlords insurance.
For assistance with your cover contact CHU. To discuss your property’s strata management needs or receive a FREE management proposal contact our friendly team. We also offer more helpful resources and community living news in our FREE newsletter.
