Insurance? Covering The Basics


SSKB talks about insurance types used in strata communities

Are you covered? Are you sure?

Navigating the insurance maze in a strata community can be complex, so before you rush in to purchase contents insurance, we recommend you talk to your body corporate/owners corporation committee about the strata insurance policy to find out what is covered.

Consider the research extra ‘insurance’.

It could save you money in paying for coverage that isn’t required, as strata insurance may cover some fixed parts of your property and, it could save you the distress of learning that you are not, in fact, covered and the financial burden of paying for a repair or a replacement.

In this article we take a quick overview of the types of insurance that might apply to you.

Strata Insurance

Every resident contributes to this insurance through their fees/levies. This covers the building itself and any of the structures that are part of the common property, such as the swimming pool, the lifts etc.

The insurance will cover will also cover things such as public liability.

But that’s just half of the story.

Every resident should have a form of contents insurance to protect valuables inside as well and this is where it can get tricky – so we’re going to take a quick over view of two types of insurance.

Landlord Insurance

If you’re renting out your property, communication with your body corporate committee and the property’s  insurer is vital.

Landlord insurance should cover items that are part of the property’s permanent feature that aren’t covered by strata insurance – these will be items such as a working stove and oven, light fittings, carpets and curtains.

Good insurance will also protect your business from accidental and deliberate damage or theft of your property by tenants as well as loss of income should a renter default on their payment.

If your property is part of a letting pool, talk to your insurance broker about short stay landlord insurance and whether this policy provides the right type of coverage for you.

Renter’s Insurance

Whether it is fire, theft or storm related, protecting personal possessions is the primary aim of renters or tenants’ insurance.

There are low-cost contents insurance policies on the market to cover tenants for the basics, and it is worth reviewing your policy before its renewal each year to ensure that the level of coverage is still appropriate.

Depending on your insurer, renters’ content insurance can also cover accidental damage, coverage of property when you’re moving between premises and even cover goods in storage.

The Insurance Council of Australia has these great tips to make sure you’ve got all the bases (and property!) covered.

  • Check the defined events in your Policy Disclosure Statement (PDS) to make sure they cover you for the risks you face
  • Insurers may treat professionally managed properties differently to if you manage the property yourself
  • Holiday properties may require a short-stay landlord policy
  • You can reduce your premium by taking out a higher excess
  • Check your policy to see if it covers contents inside the property that you allow your tenants to use
  • Strata insurance policies will not cover you for the risks associated with leasing your unit or apartment
  • An insurance broker can help find a policy that’s most appropriate to your needs


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