Insurance requirements for strata titled properties can be confusing. Often it is hard to state as a general rule what is covered by the body corporate and what an owner is responsible for. When it comes to something as significant as insurance, it’s important that you get all the details right the first time, so you’re not financially disadvantaged if an incident occurs. Body Corporate Under the Body Corporate and Community Management Act, the body corporate is responsible for insuring common property (e.g. barbecue equipment, hallway and lobby carpets) and body corporate assets, as well as buildings in which lots are located. The body corporate’s responsibility in insuring a building depends on how the community titles scheme is registered:
Certain improvements and fixtures will be included as part of the building. As all insurance policies differ, we strongly advise that you check your particular policy, but generally, the following items will be covered by the body corporate building insurance:
Owner Occupiers Owner occupiers are responsible for all items from the interior paint inwards (minus fixtures and improvements as listed above). You should insure:
Investment Owners Landlord’s insurance will cover the items owners are responsible for which are not covered by the body corporate’s policy (such as carpets, light fittings, dishwashers, air conditioners). Your tenants will be responsible for insuring their own furniture and personal belongings. Landlord’s insurance will often include other covers such as accidental damage, malicious damage, and loss of rent. Tenants Tenants are responsible for the items they own within the unit, including:
If the above information doesn’t answer all your questions, contact your SSKB Community Manager who will be across all the details to ensure you are appropriately covered.