Guest post by Kimberley Lundberg from Insurance Aid General Brokers
If you own and rent a unit or lot in a strata managed complex, you might be tempted to think that the insurance your body corporate pays on your behalf (Strata Insurance) will protect you against loss of rent and property damage from tenants.
DON’T MAKE THIS MISTAKE! Many Landlords have found out the hard way why this is an expensive mistake to make.
Strata Insurance and Landlord Insurance serve two very different purposes and in this article we outline exactly why landlords will need both!
Landlord Insurance offers protection against tenant-related losses. These losses can include loss of rent due to tenant default or damage to the property caused by the tenants. If you’re an investor in a strata property and you rent out your property to long term tenants, then it is strongly suggested you take out a Landlords Insurance policy.
Landlord Insurance doesn’t cover the personal possessions and furnishings of tenants or owner occupiers living within a strata property.
Most Strata Policies cover its property owners for loss of rent, temporary accommodation, contributions and storage costs. However, this cover is limited to events which are defined in the building section of the policy.
This cover offers protection when you occupy your Lot/Unit. Strata Insurance will generally pay the reasonable cost of temporary accommodation that would be incurred if your Lot/Unit is deemed as unfit to be occupied for its intended purpose due to:
When you have leased your lot/unit, strata insurance should pay the rent when your Lot/Unit is made unfit to be occupied for its intended purpose due to:
To ensure you are protected as a landlord, we encourage you to contact your insurance broker today. Alternatively, you may contact firstname.lastname@example.org or 07 3630 1823 and speak to Kim, Nikolle or Kass so we can conduct a review on your insurances.