Property owners will purchase adequate home and contents insurance to protect their assets, but what about strata complexes?
As you might imagine, with so many owners involved, the concept of insurance is a bit different in strata. In the ACT, Owners’ Corporations are required to make sure there are up-to-date insurance policies in place for all common areas and residences within a strata community.
Two required policies include:
Building insurance in strata complexes must cover the building and units against several threats, including:
- Civil commotion,
- Malicious damage.
The policy should offer the greatest possible coverage over the building (or multiple buildings) for their full replacement value.
Public liability insurance
In case of accidents in the common areas, Owners corporations must take out public liability insurance. This policy covers damage to the property, death or injury that the Owners’ Corporation could be deemed liable for.
Individual strata owners can also take out insurance for the contents within their own property, as well as an additional layer of coverage for their home.