What is Strata and Who is it For?

Tragedies occur, to even the most diligent of us—a tree will ruin your roof in a storm, a guest will slip in your driveway and injure his ankle.

If you are the holder of the strata, and the roof (or driveway!) belongs to the owners as a whole, who is liable for the clean-up and the related costs? That’s where the policy strata come in.

What is strata insurance?

Housing strata insurance is insurance coverage that common property of the strata.  This may include parking spaces, common driveways, roofs, interior and exterior walls, elevators and other common areas. It also includes the fixed sections of your building, namely bathrooms and kitchens, but there are variations to this if you upgrade—we’ll mention them later.

Strata insurance also protects the liability coverage of individuals working in the area or visiting the premises. If your owner’s company chooses to repair the exterior and the contractor is hurt, the expense of the lawsuit should be protected by your Strata Insurance quote.

What’s the distinction between contents, building and strata insurance?

Building coverage is meant to protect permanent buildings. If you own a free-standing property, you’re protected by building insurance. This is the same for a granny flat or a garage. If you own strata land, you’re unlikely to need building coverage on top of a strata policy.

Content coverage protects detachable products inside your house. Things like furniture, electronics, clothes artwork and everything else can be gathered up to remove. If you reside in a strata property, you can take out content coverage just as you would if you stayed in a free-standing primary residence.

You’re still required to verify that your strata insurance covers anything you think it does.

Claims usually protected by strata policy

Strata insurance plans are generally described as a wide spectrum plan. Although your strata insurance policy does not state what is protected (as maybe your car or content policy), it will clarify the exclusions of your policy, explaining what is not covered. The list below details the strata claims that are widely accepted.

  • Damage on effect
  • Damage due to water
  • Accidental losses
  • Malicious losses
  • Fire damages
  • Storm impact 

There are some other unique claims made which have been compensated by insurers, including:

  • Flood. These incidents do not happen very often.
  • Cleaning of the house after removal of the cadaver
  • Repairs after forced entry from emergency responders (ambulance, police etc.)

What does strata insurance cost cover?

Your insurance premium would depend on the following:

  • Where in the country you are — cyclone-prone or storm risk regions are costlier for insurance companies, so they ramp up the premiums
  • The condition and age of the house, including any known current defect
  • The intent of the housing complex a large proportion of the units are used for Airbnb rental, the cost could be higher relative to the landlord occupied properties.
  • Groups of common property included, with pools and gyms raising the price relative to the bare-bones complex.
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