Strata Insurance coverage explained

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Strata Insurance coverage explained

Following on from our previous article where we explored “What is strata insurance?”, we now look further into other sections of cover offered within some strata insurance policies and touch on what strata insurance does not cover.

Aside from Building damage cover and Public Liability, other forms of insurance Owners Corporations can add into their strata insurance policy, include;

  • Loss of Rent,
  • Temporary Accommodation,
  • Catastrophe Cover,
  • Misappropriation of Funds,
  • Committee Members Liability (Office Bearers),
  • Voluntary Workers (Personal Accident),
  • Legal Defence Expenses,
  • Government Audit Costs,
  • Workplace Health & Safety Breaches,
  • Machinery Breakdown,
  • Lot Owners Improvements,
  • Workers Compensation.

 Below we have expanded on a few of these:

  • Office Bearers cover;
    • Office Bearers cover provides Committee members protection for Loss arising from a Wrongful Act which results in a Claim.
  • Legal Expenses cover;
    • Legal Expense cover provides protection for the Owners Corporation against the costs associated with legal proceedings brought against the Owners Corporation. The cover is triggered when an action is brought against the Owners Corporation (not if the Owners Corporation is the party originating the action) and the insurance provider feels the Owners Corporation has good prospects of defending the action in court.
  • Machinery Breakdown cover;
    • Machinery Breakdown cover provides protection to the Owners Corporation for damage to electrical, electronic and mechanical machinery within the strata scheme.

What strata insurance does not cover?

What a strata insurance policy does not cover will depend on each insurer’s strata policy wording. Each policy wording will have different policy exclusions, terms and conditions. It is very important to read your strata policy wording to ensure you have a good understanding of what is and is not covered.

Strata insurance provides cover for the property & responsibilities of the owners corporation.

Typically, strata insurance will not provide cover for:

  • property damage to items not owned by the Owners Corporation,
  • public liability cover for loss or injury caused by anyone other than the strata scheme.

as these items are generally not the responsibility of the owners corporation to insure.


General Advice Warning

In accordance with the Corporations Act SUU is obliged to provide you with a General Advice Warning as we have provided you with General Advice. This warning complies with the requirements as set out in the CorporationAct.

This advice has been prepared without taking account your objectives, financial situation or needs.

Before acting on the advice, you should consider how appropriate it may be, having regard to your objectives, financial situation and needs


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