What does my strata insurance cover in Queensland?

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:

• Building Format Plan (e.g. a multi-storey block of residential units): it must hold insurance for the full replacement value of each building which contains a lot.
• Standard Format Plan(e.g. a townhouse complex): it must insure each building to its full replacement value where a building on one lot has a common wall with a building on an adjoining lot. If there are no common walls, the owner is responsible for building insurance.

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:

• Toilets, baths, basins, shower screens
• Sinks
• Cook tops
• Ducted air conditioners (but not mobile or fixed air conditioners which service a particular lot)
• Bench tops
• Built in cupboards
• Windows and doors
• Fixed tiling

Owner Occupiers Owner occupiers are responsible for all items from the interior paint inwards (minus fixtures and improvements as listed above). You should insure:

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

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:

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

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.

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