4 Key Items That Strata Insurance Covers


Securing the right insurance is important if you own strata-titled properties. If you’re like other property owners you may even be asking yourself “Do you need home insurance if you have Strata?” Strata insurance, also known as body corporate insurance, is a specialized form of coverage designed to protect the shared interests and assets of property owners within a strata community. Here are 4 key items that it covers.

A Building’s Structural Integrity

Strata insurance covers the structural integrity of a building. It provides protection from events such as vandalism, fire, and natural disasters that can damage a building. And it extends beyond individual units to safeguard communal elements such as stairwells, elevators, and lobby areas.

In the event of an unexpected catastrophe, like a fire that engulfs the common areas, strata insurance acts as the financial shield. It will give you compensation to facilitate the repair and reconstruction processes. Additionally, it caters to damages caused by events that might not be within the control of individual unit owners. This collective approach to safeguarding the structural elements ensures that every stakeholder in the strata community is shielded.

The specifics of the coverage can vary and property owners need to review their strata insurance policy thoroughly. The policy will outline the exact extent of coverage for the building structure and common areas, providing transparency about what is included and what might require additional coverage.

Liability Protection

Strat insurance doesn’t only cover physical structures: it also covers liability. It can protect property owners, including the body’s corporate committee members, from legal and financial ramifications in case an accident occurs on the property.

For instance, if a visitor were to slip and fall in a common area, sustaining injuries, the liability coverage in strata insurance would come into play.  It will cater to the legal expenses, medical bills, and compensation claims, alleviating the financial burden from individual owners and the corporate body.

You need to understand what the liability coverage entails. Clear communication and education on the extent of liability protection will ensure that all residents comprehend the shared responsibility and accountability that comes with strata living.

Shared Assets

In a strata-titled property, the responsibility for insurance isn’t limited to the structural aspects alone; it protects shared assets as well. Common property, including furniture, fixtures, and equipment in shared spaces like gymnasiums or meeting rooms, can be covered under strata insurance.

This facet is crucial in mitigating risks associated with theft, vandalism, or damage to shared assets. For example, if there is a break-in resulting in the theft of communal furniture or damage to shared amenities, strata insurance for contents can assist in the replacement or repair costs.

Property owners should pay attention to the valuation and coverage limits outlined in the strata insurance policy for contents. Adequate coverage will save you from the financial burden of replacing or repairing shared assets.

Loss Of Rent

In the unfortunate event of significant damage to a strata-titled property that renders it uninhabitable, strata insurance includes provisions for loss of rent and temporary accommodation. This coverage aims to ease the financial burden on property owners who may face challenges in covering ongoing mortgage payments or securing alternative accommodation during repairs.

Loss of rent coverage is particularly valuable, as it protects owners who rely on rental income to meet their financial obligations. It ensures that, even in the face of adversity, such as fire or extensive damage, owners can continue to meet their financial commitments without undergoing undue hardship.

Wrapping Up

Strata insurance is a multifaceted and essential component of property ownership in a strata community. It covers physical structures, liability, shared assets, and loss of rent. It’s important to go through your policy to gain an understanding of what it covers. Top of Form


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