If you’re a property owner or landlord in our vibrant city, understanding the ins and outs of strata insurance is crucial to protecting your investment. Walkom Real Estate is here to guide you through the essentials, ensuring you have the right coverage for your property.
Strata Insurance: An Overview
Strata insurance is vital in safeguarding shared or common property within a strata-managed complex, owners’ corporation, or body corporate-managed complex. Strata insurance typically includes external areas like balconies, shared gardens, pools, etc. However, it’s essential to know that strata laws and insurance vary from state to state.
In New South Wales, for instance, strata won’t cover paint and wallpaper, while in Queensland, it may exclude coverage for air conditioning units. Therefore, it’s wise to delve into your state’s legislation to understand the extent of your coverage.
What’s Covered by Strata Insurance?
Strata insurance generally covers building fixtures like pipes, hot-water systems, air-conditioners, and common areas like gardens, lobbies, car parks, and pools. Public liability insurance for common property is also part of the package.
What Strata Insurance Doesn’t Cover
However, it’s crucial to note that strata insurance doesn’t extend to belongings inside your property or items not permanently attached to the building. Internal fittings, lights, carpets, furniture, and personal belongings fall outside the coverage.
Protecting Your Investment: Landlord Contents Insurance for Strata Property Owners
For landlords keen on safeguarding their valuables, contents insurance is an absolute MUST. Unlike strata insurance, contents insurance shields personal belongings from theft, fire, and accidental breakage. It covers items such as furniture, electronics, clothing, and more.
It is imperative for property owners in strata to secure landlord contents insurance coverage. This specialised insurance ensures comprehensive protection for your personal belongings within the property, filling any gaps left by strata insurance.
If you’re renting out your property, remember that strata insurance doesn’t cover theft or interior damage by tenants. In such cases, landlord insurance becomes invaluable, protecting against potential issues with tenants, legal fees, and loss of rent.
Benefits of Contents Insurance for Strata Property Owners
Whether you’re a homeowner or landlord, contents insurance offers peace of mind against unexpected accidents, damage, or theft. It ensures you’re prepared for the sudden costs of replacing or repairing items, providing comprehensive coverage for your valued possessions.
Example Scenario: Fire Damage in a Rented Apartment
During a devastating fire, flames engulfed a rented apartment, causing significant damage to the ceilings, walls, carpets, blinds, and the tenant’s possessions in the lounge room.
Action Steps for Each Party Involved:
Owners’ Corporation:
- The owners’ corporation, responsible for managing shared property in the complex, promptly contacts the strata insurer.
- Will arrange for repairs to the damaged roof and address damage to the walls, ceiling, and skirtings within the landlord’s apartment.
- These structural components fall under the building category and are typically covered by strata insurance.
Landlord:
- Simultaneously, the landlord reaches out to their own insurer.
- They coordinate the repair process for the damaged carpets and blinds.
- Since carpets and blinds are not permanent fixtures, they are considered part of the landlord’s contents, and strata insurance doesn’t cover them.
Tenant:
- Having experienced damage to their personal possessions in the lounge room, the tenant initiates contact with their contents insurer.
- Their insurer assists in replacing or repairing the damaged possessions.
- Personal belongings, as these are the tenant’s contents, are not covered by the strata or landlord’s insurance.
Understanding these distinctions is critical in ensuring a hassle-free resolution in these situations. While strata insurance typically covers structural elements and shared property, personal belongings and specific fixtures fall under the purview of individual landlords and tenants. This example highlights the importance of comprehensive coverage for all parties involved.
At Walkom Real Estate, we prioritise your peace of mind. If you have questions or need assistance navigating the intricacies of property insurance, feel free to reach out. Together, you can enjoy the confidence that comes with a well-covered investment.