Disclaimer: This article is not insurance advice. For advice on insurance in your scheme or Lot, contact your insurance broker directly.
Strata insurance plays a crucial role in protecting buildings and common property in strata communities. It ensures that shared areas and structures are repaired or rebuilt after events such as storms, fire, and water damage. However, understanding the distinctions between strata insurance and personal insurance, as well as why certain claims may be rejected, is essential for lot owners and committees.
What Does Strata Insurance Cover?
Strata insurance generally covers the building structure and common property, including, but not limited to:
- External walls, windows, and roofing.
- Shared facilities such as lifts, stairwells, and foyers.
- Infrastructure including wiring, plumbing, and common area fixtures.
- Damage caused by insured events such as storms, fire, and water damage.
While strata insurance provides protection for common property, it can sometimes provide cover for some fixed fixtures within individual lots. However, it does not cover the internal contents of individual lots. Lot owners are responsible for obtaining their own contents insurance to safeguard their personal belongings and internal fixtures.
Lot Owners’ Personal Insurance Coverage
Lot owners should maintain personal insurance to cover damages to:
- Flooring, fixtures, and internal walls.
- Electrical appliances, furniture, and personal belongings.
- Temporary accommodation costs if the property becomes uninhabitable.
If your lot has been damaged—whether it’s flooring, fixtures, internal walls, or personal belongings—you may need to lodge a claim with your personal insurer. For specific information on what is covered under the body corporate insurance policy, please contact your broker via SSKB to ensure all claims are lodged appropriately.
Why Some Claims Are Rejected
Insurance claims can be denied if damage results from pre-existing maintenance issues. For example, if a window or skylight was broken and left unrepaired before a storm, any resulting water damage may not be covered. Insurers expect lot owners and committees to maintain their properties adequately to prevent avoidable damage.
Other reasons claims may be denied include:
- Damage occurring due to wear and tear rather than an insured event.
- Non-disclosure of pre-existing issues.
- Lack of sufficient evidence to prove the cause of damage.
This reinforces the importance of ongoing maintenance and timely repairs to ensure insurance coverage remains valid.
Lodging Your Personal Insurance Claim
If you need to file a claim for damage to your lot’s contents, follow these steps:
- Document the Damage – Take clear photos and videos of all affected areas. If possible, include before and after photos, as comparison shots provide insurers with strong evidence of the damage.
- Make Detailed Notes – Write down what has been damaged and how the damage occurred. The more details, the better.
- Do Not Dispose of Damaged Items – Unless an item poses a safety hazard, do not throw anything away until your insurer has assessed it. This helps them determine the extent of the damage.
- Contact Your Insurer – Lodge your claim directly with your insurance provider as soon as possible.
- Loss Adjuster Appointment – Once your claim is submitted, your insurer will appoint a loss adjuster to assess the damage.
Strata Insurance & Common Property Repair
The SSKB team is actively working with committees to assess and repair damage in affected strata communities. If you believe there is damage to common property, you can submit an Insurance Claim Form via SSKB.
Key considerations for strata insurance claims:
- Strata insurance does not cover personal lot contents.
- Flood damage coverage varies between policies, so review your scheme’s policy carefully.
- Your Certificate of Currency, which includes your policy details, coverage limits, and excess information, can be accessed via the SSKB app or mySSKB portal under Documents > Owner Documents.
Lodging Your Claim as Soon as Possible
If your property has suffered damage due to an extreme weather event, it is crucial to lodge your claim immediately. Delayed claims may result in extended repair times and potential claim complications. Insurers often have strict deadlines for reporting damage, so acting quickly ensures you receive the necessary assistance without unnecessary delays.
Understanding the distinction between strata insurance and personal insurance is crucial for lot owners and committees alike. Proactive maintenance, prompt claim lodging, and thorough documentation are key factors in ensuring a successful insurance outcome. Severe weather events, such as ex-cyclone Alfred, serve as a reminder that preparedness, proper upkeep, and knowing your insurance coverage can make all the difference in protecting your property and financial security.
