Understanding Owners Corporation Insurance - Vic - SSKB - Strata Managers | Community Experts

Understanding Owners Corporation Insurance – Vic

Even considering an insurance policy is enough to give most people a headache – let alone handling insurance for a multi-storey apartment block.  In Victoria, owners corporations are required to insure common property, public risk and every building which contains an owner’s lot (i.e. an apartment or a unit).

The owners corporation building insurance will cover the full replacement value of the building structure including improvements and fixtures.  A building is defined as the structure and part of a building or structure (including walls, out-buildings, installations and other things attached to that structure), pipes or cables for shared services, and boats or pontoons permanently moored to the land.  The insurance must cover for the replacement, repair and rebuilding of the damaged property.  This entails cost of demolition and removal of debris, employment of architects/surveyors and replacement of services such as driveways and fences.

Lot Owners

Unit owners are responsible for all items from the interior paint inwards (minus fixtures and improvements as listed above) as your owners corporation will not insure these items:

  • Carpets
  • Light fittings
  • Mobile/fixed air conditioners
  • Curtains and blinds
  • Furniture
  • House hold appliances e.g. dishwashers
  • Valuables and personal equipment

Investment Owners

If an owner has a tenanted unit, it is a good idea to take out a form of landlord’s insurance. This 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), and also usually items such as accidental damage, malicious damage, and loss of rent.

Lot Owners/Tenants

It is encouraged insure contents owned by lot owners or tenants within their unit or for any interest they may have in common property.  Items which are typically insured include:

  • Furniture
  • TVs, computers, DVD players
  • Clothes
  • Jewellery
  • Sports equipment

Insurance for owners corporations can vary greatly depending upon the requirements of the property.  While SSKB has provided some basic guidelines, we would recommend seeking the advice from professional insurance providers to cater for the needs of your property.


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Recent Comments

1 Comment

Paul White On October 9, 2019 | Reply

Thank you for this excellent explanation on the demarcation b/w OC ‘building’ and Lot Owner/Investor ‘contents’ insurance — it is rare indeed to have it described so well!
To put an example then if I may, would damage by a tenant to internal doors and the walls of an individual unit be generally covered by standard OC building insurance?
How about, say, an oven that is gas-connected or wired-in?
Thank you again,
Dr Paul White

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