What is a strata insurance policy?

What does strata insurance usually cover?

Strata insurance generally covers the building and common property and contents as defined on the title for the property. This might include common areas, garden equipment, wiring, lifts, swimming pools, car parks, walls, windows, gardens, ceilings and floors.

What does strata insurance generally not cover?

Generally speaking, items that aren’t covered by strata insurance include internal fittings and fixtures, lights, carpets, floorboards, furniture, electrical items, jewellery and other personal belongings.

How much does strata insurance cost?

There’s no fixed standard for Strata Levies, which vary from scheme to scheme depending on how many communal facilities it has and other factors. In New South Wales, average Strata Fees can be anywhere from 0.3% to 1.2% of the property’s value (0.8%–1.2% with facilities, 0.3%–0.7% without facilities).

How does home insurance work in a strata?

Strata home owner associations strongly recommend that strata owners and tenants purchase insurance to cover their needs. Strata fees only pay for the strata corporation’s insurance; strata fees do not pay for homeowner’s or tenant’s insurance.

What is Strata responsible for?

Generally speaking, in most strata schemes, the lot owner owns the airspace and everything in it within the boundary of the unit. They don’t own the main structure of the building. The owners corporation is responsible for the repair and maintenance of common property.

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Does strata insurance cover internal walls?

Strata insurance covers the following: Common property such as common areas, car parks, stairwells, lifts, gardens, and common floors, walls, and ceilings.

Is Strata responsible for leaking shower?

Liability for strata plumbing issues depends on the cause of the water leak or fault. … Leaking shower in private property: If the cause of the leak is from an internal fitting, then the owner will be responsible unless the cause of the leak can be traced to a plumbing issue caused by common property infrastructure.

Does strata insurance cover water damage?

Physical evidence of a water problem

The intent of strata insurance is to cover claims for water damage that is sudden and accidental. In many instances, strata insurance will cover the hidden perils of burst or leaking pipes when physical evidence of damage is first noticed and a claim is made.

Does strata insurance cover accidental damage?

Strata Insurance provides cover for the common or shared property for apartment buildings or flat complexes. … Such policies will tend to insure against standard perils such as fire, earthquakes, storm and water damage, accidental damage by tenants, injury to tenants, theft, floods and more.

Are kitchens covered by strata insurance?

It also covers the fixed parts of your unit, including kitchens and bathrooms, although there are exceptions to this if you upgrade — we’ll discuss those later. Strata insurance also covers public liability for people working onsite or visiting the property.

Does strata have building insurance?

It is a legal requirement under the Strata Act in NSW that all Owners Corporations of a Strata Scheme insure the building and keep the building insured under a contract of insurance against fire, lightning, explosion and any other occurrence specified in the policy.

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Who pays insurance excess in strata?

If an excess is applicable under the policy, it is generally paid by the Insured. Strata Insurance policies are intended to cover the Owners Corporation for losses that occur in a common area that they can be held legally responsible for.