With the increasing popularity of apartments, townhouses, and strata properties in Western Australia, strata insurance is mandatory under the Strata Titles Act. Regardless of whether you are living in a strata property or part of a Strata Company in WA, it is essential to understand what Strata Insurance entails.
What is Strata Insurance?
Strata insurance essentially covers shared or common property. It protects a group of people who share ownership of a strata property. In Australia, the Strata Company is legally responsible for taking out and maintaining strata insurance. It serves as a safety net for the building itself and common areas on the property.
What Strata Insurance Covers
Before taking out strata insurance, it is important to know how you are being covered. Strata insurance typically covers:
Common Property and Scheme Buildings
Strata insurance mainly covers the structural foundations of the building and common property, including:
- Building Structure: Floors, walls, roofs, electrical and plumbing systems
- Common Areas: Lobbies, hallways, garages, and shared amenities
- Common Assets: Items owned by the Strata Company but used by residents
Fixtures and Fittings
Strata insurance extends to cover your fixtures and fittings that are attached to or form part of the building. This includes:
- Built-in kitchen, bathroom, and bedroom furniture
- Nailed or glued down hard wooden flooring, tiles, paints on walls, and wallpaper
- Electrical equipment wired to the electrical cabling
- Solar Panels
Contents Insurance and The Insurance Gap
While strata insurance is broad, it does not cover everything. As a landlord owner or occupier, you should insure anything deemed as ‘contents’.
Personal Contents
Strata insurance excludes items that are not permanently fixed to the building. This includes movable items such as:
- Personal items and valuables
- Tables, chairs and other loose furniture
- Screwed in or plugged-in appliances (e.g., lamps, computers, microwave, fridge)
- Free-standing contents that are not hard-wired or hard-plumbed to the building
The Personal Liability Gap
Additional insurance is significant depending on your role:
Landlord Owners
If you lease your property, you should insure anything deemed as ‘contents’. Obtaining contents and landlord’s insurance will also include legal liability insurance, covering your negligent exposure arising from the use of your Lot.
Owner-Occupiers and Tenants
If you live in your Lot or are a tenant living in strata, you should have contents insurance that covers your contents and legal liability. A tenant can become liable to the Strata Company for negligent claims that encroach beyond the confines of the Lot and extend into common property.
Lync Insurance: Your Strata Insurance Specialists
At Lync Insurance, we are your trusted strata insurance specialists with an extensive understanding of strata schemes and their complexities. Our expert team can provide you with professional advice on choosing the right strata insurance policy for your property or tailor a policy around your needs to ensure that you are fully insured. Ready to have your strata complex safely insured? Contact our team today to find out more.
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