As a strata-titled property owner, you need to be familiar with strata insurance to protect yourself from any damages. It’s not a regular home policy. It’s designed to meet the specific requirements of strata corporations. Here are the eight key features of navigating strata insurance efficiently.
What is Strata Insurance?
Strata insurance is a unique product developed for multi-unit facilities like apartment buildings, townhouses or condominiums. It also takes care of the longer walks and the common areas such as the lobbies, elevators, and swimming pools. But where is your subunit in all of this? At this point, strata content coverage becomes useful.
The Impact of Strata Home Insurance Policies
While strata insurance covers the building’s general structure and common areas, your personal items within your unit are not included. That is where stratum contents cover comes in. It shields your furniture, appliances, and possessions against burglary, fire, or water damage. Without it, you might be liable to incur any of the unexpected losses or liabilities.
Understanding Your Policy
Knowing and understanding clearly your strata insurance policy is a must. Make sure you understand what is covered, what is excluded, and what limits or deductibles are defined, if any. Policies may differ, so don’t presume that all strata insurance policies are alike.
The Strata Corporation
The strata corporation or body corporate is responsible for buying and maintaining the strata insurance in the strata-titled property. All property owners share the responsibility of paying the insurance through their strata fees. As a strata resident, it is essential to be well aware of the insurance coverage and any updates to the insurance policy.
Additional Coverage Options
While strata insurance covers the building and common areas, you may need to explore additional coverage for complete protection. Such a policy could incorporate interior or exterior renovation or improvements of your unit, liability coverage if someone is hurt on your premises, or compensation for rental loss if your unit becomes inhabitable because of an insured event.
The Significance of Evaluations that are Held Regularly
To remedy the problem of insufficient coverage, the strata corporation should periodically evaluate the building’s depreciation value. Construction costs and property values vary yearly, so homeowners must revise their insurance coverage to avoid paying less in case of any insurance claim.
Know Your Responsibilities
As a homeowner of a strata property, you are obligated to assume some severe responsibilities regarding insurance. Being that the stratum corporation is responsible for insuring the building and the common areas, it is up to you to have your unit contents and all improvements or upgrades insured. When you learn what your responsibilities are, that allows you to get the adequate coverage you need.
Seek Professional Advice
Trying to navigate the intricacies of strata insurance can be a lot of work for experienced homeowners. If you are puzzled about your insurance requirements or coverage alternatives, contact professional assistance such as a broker or strata management firm. They can determine your requirements and suggest adequate coverage to protect your investment.
Muti-unit property homeowners need to be knowledgeable about strata insurance. Being well-informed is the key to understanding the difference between strata insurance and strata contents insurance, as well as knowing what your policy covers, your role as a homeowner and how this insurance protects your investment from strata-titled property.