A Strata Title provides the legal ownership of a portion of an apartment block. These portions are known as ‘lots’. Owners of a ‘lot’ receive a title deed to their unit. You can sell, lease or live in your lot as you would a house. Each unit owner owns the interior spaces of the lot, but the building as a whole is owned by the Owner’s Corporation.
Strata Title Insurance is issued to the Owner’s Corporation and covers the building and other common area contents as well as legal liability. Each individual unit holder is responsible for insuring their own contents and liability for incidents occurring inside their unit.
In addition to the cover for the building, and common liability the residential strata insurance can also provide the following covers in accordance with the strata titles act.
Some Residential Strata policies can accommodate risks that are 100% residential, 100% office or commercial though some insurers do not write high hazard tenant occupations (including wood workers and wok cooking risks) or any mix in between without the loss of benefits for residential units. Many insurers will not deal directly with body corporate entities nor will they appoint strata managers as Authorised Representatives. Therefore utilising the services of an Insurance Broker to obtain cover for you is a huge advantage.
The key benefits and features of Residential Strata policies vary amongst insurers and while we seek to get you a good price, you also need good cover. A broad package backed by strong insurers offering an excellent claims service should be your priority. You do get what you pay for.
The main sections of a Residential Strata Insurance policy includes the following:
Property – Buildings & Common Contents
This section of the policy insures your buildings and common contents for physical loss, damage or destruction by any cause (not otherwise excluded). Some of the benefits include:
Additional benefits can be included with some insurers such as:
Property Owners Legal Liability
This section of the policy covers the Owner’s Corporation or Body Corporate for their legal liability following an occurrence that causes personal injury or property damage. It can include:
Additional benefits with some insurers can include:
We recommend a Sum Insured of at least $20,000,000
Fidelity Guarantee covers the amount of any loss that the insured incurs as a result of fraudulent misappropriation of the Body Corporate’s funds. The loss must occur during the period of insurance and must be caused by a person who has responsibility to care for and protect the funds. Unfortunately some people in a position of Trust do not always act honestly. This cover provides protection should this happen.
Voluntary Workers Personal Accident
This section of the policy provides monetary benefits in accordance with a Schedule of Benefits listed in the policy in the event that a voluntary worker is injured or dies as a result of an accident while carrying out that voluntary work. Many Body Corporates have volunteers who provide Garden or maintenance services etc, so there is a need to look after them should they become injured. The Schedule can include:
There are a number of additional benefits provided under this section of the policy that include:
Office Bearer’s Liability
Office Bearers Liability will indemnify the committee members for Loss arising from a Wrongful Act which results in a Claim. A Wrongful Act could be anything from an error or omission, misstatement, defamation, breach of confidentiality, breach of trust and any other allegation of a breach of a duty of care while holding a committee position within the Body Corporate.
There are a number of additional benefits and extensions of cover available including:
This provides cover against sudden and unforseen physical destruction or physical damage to machinery that requires repair or replacement to enable normal working of the machinery to continue. In a Residential Body Corporate, these can be the Pool pump, submersible pumps that deal with rain water run-off or Airconditioning systems forming part of the buildings. Cover can include:
This section covers Legal Expenses you are liable to pay following legal proceedings brought against you.
This section covers reasonable and necessary Audit costs incurred due to an investigation of your financial affairs by a Government body.
Other Sections that can be available also in a Residential Strata Insurance
Workplace, health & Safety Breaches
This covers you for legal expenses incurred in appealing against any imposition of an improvement or prohibition notice or determination made under any workplace, occupational health and safety or similar legislation.
Lot Owner’s Improvements
This covers Damage to Lot Owners Improvements (i.e. new fixtures or upgraded fixtures to a unit) that are not otherwise covered in Section 1.
This section provides cover for employees and is subject to the relevant workers’ compensation legislation in the State or Territory where the employees are based.
Note: Some circumstances make workers’ compensation insurance compulsory if you have employees
Who can help?
An insurance broker’s role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one.
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