Protecting Your Strata from Natural Disasters
If a bushfire or severe storm hit your strata complex, your standard insurance might not be able to protect you. Strata buildings might be insured through property insurance, but if the insured amount doesn’t reflect the full replacement value of the property (as required by the Strata Titles Act), you could be left out of pocket. Despite being required by the Strata Titles Act, underinsurance is more common than you might think, often due to simple oversights or misjudged evaluations.
For example, trades and materials often become scarce after a natural disaster, which drives up the costs of rebuilding a property. Your standard insurance policy might not be able to cover these price hikes. Additionally, property insurance policies don’t tend to cover all types of natural disasters.
Covering the Hidden Costs with Catastrophe Insurance
Your building may be underinsured in the event of a total loss. Catastrophe insurance helps cover the extra cost of rebuilding after a disaster, even when demand pushes prices up. Catastrophe insurance typically covers storms, cyclones, floods, and fires, and ensures that your strata complex is protected if it is significantly damaged.
At Lync Insurance, we know the risks faced by strata companies. We help you bridge the gap between your property insurance and the risk of catastrophe. Get in touch with one of our strata specialists today for expert advice and a quote.
