It's important to understand the specific coverage provided by strata insurance. This ensures that you don't run the risk of being inadequately covered by your personal insurance.
Generally speaking, in most strata schemes, the lot (unit/apartment) owner owns and is responsible for the airspace and everything in it within the boundary of the unit.
Residential strata insurance offers coverage for apartments, townhouses, duplexes and units. In case of loss or damage, this type of insurance typically provides protection for:
Contents in common areas such as shared outdoor furniture and gym equipment
Building fixtures such as pipes, hot-water systems, intercoms and air-conditioners
Shared property spaces including gardens, lobbies, car parks, pools and stairwells
Public liability insurance covering common property
In this context, “common areas” could include spaces for recreation, like pools or gyms. “Fixtures” may encompass things such as doors, built-in air-conditioning, and hallway decorations. “Shared property” can pertain to features like sealed driveways and stairwells.
Some insurers might also include extra benefits in their coverage for losses and damages. These could involve expenses for debris removal, temporary lodging, and compensation for lost rental income.
Insurance claims and coverage can be complex and confusing. Here’s an example:
Normally, burst pipes in a boundary wall or outside the lot are the responsibility of the Body Corporate. However, if a pipe is for the exclusive use of the lot and is located in an internal wall, then if it bursts within the lot it’s the owner’s responsibility (e.g. a pipe in an internal wall feeding the shower). If a pipe located in an internal floor bursts and the pipe services more than one lot, it is the Body Corporate’s responsibility to maintain that burst pipe or any plumbing under the floor.
Let’s consider another example:
If your carpet or floating floorboards are damaged by a leak from a burst pipe in a boundary wall, you may not be covered by strata insurance and instead have to make a contents insurance claim (if you have a policy) or pay for the repairs out of pocket.
Generally, strata insurance policies only provide coverage for fixtures that are considered part of the building's structure, which may include concrete or tile floors but not carpets or floating floorboards. However, the extent of coverage can differ between policies.
The specific coverage offered by a strata insurer can differ based on the provider. You’ll need to check with the Body Corporate or strata manager to find out the insurance details for your building or community complex.