Strata Insurance
If you own a townhouse, unit or apartment and you’re sharing common spaces with others, strata insurance protects the building and common areas or facilities, with the premiums paid for by the owners’ corporation.
What is strata insurance?
If you own a townhouse, unit or apartment and you’re sharing common spaces with others, strata insurance protects the building and common areas or facilities, with the premiums paid for by the owners’ corporation.
Who should consider strata insurance?
Strata insurance is compulsory in every state – so if you are part of an owners’ corporation in a townhouse, flat, unit, apartment or duplex, the owners’ corporation will need strata insurance. An insurance broker can arrange strata insurance on behalf of an owners’ corporation.
What can strata insurance cover?
Strata insurance can cover the building and all common or shared property, and contents which belong to the owners’ corporation. The type of cover and its cost will depend on the kind of building, the location and the amount of common property you share. Depending on your policy, strata insurance may cover you against:
| Type of cover | Potential Benefits |
| Compulsory covers | |
| Building and common contents | Building and common content including equipment, furniture, carpets, etc. in any common area for which the owner’s corporation is responsible. This can include cover for loss of rent or alternative accommodation due to an insured peril. |
| Public liability | If people are injured on common property. |
| Optional covers | |
| Personal accident for voluntary workers | Compensation to any person injured while carrying out voluntary works on behalf of the owners’ corporation. |
| Office bearer’s liability | For office bearer’s if a claim arising from wrongful acts by the office bearers. |
| Fidelity guarantee | Loss arising from misappropriation of funds belonging to the owners’ corporation. |
| Mechanical and electrical breakdown | Physical damage to machinery or electrical items caused by breakdown. |
What usually isn't covered by strata insurance?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk, the insurer and the requirements of your business.
Policies generally do not include cover for:
- Asbestos or asbestos derivatives
- Erosion or earth movement
- Certain property features such as fencing
- Contents within apartments
There are exclusions which are specific to each type of policy, which your Westphalian insurance broker can outline for you.
