• Residential Strata
• Commercial Strata
• Common Ground Liability

A strata insurance policy covers:

Building

Covers material damage to all improvements and structural fixtures including fixed plant, machinery and underground services. Also provides for "Proprietors fixtures, fittings and improvements which form part of the building". Some of these items include built-in ovens, stovetops, kitchen cupboards, hand basins, bath, showers and spas and pools in common areas.

What is not covered under a "Building" policy?

This policy specifically excludes contents within individual units such as carpets, curtains, blinds, light fittings and electrical appliances not actually wired into the premises. These items should be insured by your Householders insurance or Landlord Contents insurance policy.

The law requires that buildings are insured for full replacement and reinstatement value.  Whitbread Insurance Brokers recommend that you obtain a professional valuation for your buildings annually to ensure the correct sum insured is arranged.

Common Contents

This covers appliances, equipment, furniture and fittings, works of art in any common area for which the Owners Corporation is responsible.

Public Liability 

Cover for the Legal Liability arising out of the ownership, by the Owners Corporation, of the property and /or common contents. This does not insure the liability of the unit owner, except where liability relates to Owners Corporation property or common contents.

Loss of Rent

Loss of Rent and/or alternative accommodation based on the rental value of a unit.  If a unit becomes uninhabitable as a result of an uninsured peril, cover is provided for the loss of rent for the indemnity period detailed in the policy.  Loss of rent is automatically included up to 15% of the building sum insured under most insurance polices. 

Personal Accident for Voluntary Workers

Personal Accident Insurance provides compensation to any person who voluntarily works on behalf of the Owners Corporation. The volunteer worker's name must be recorded in the books of the Owners Corporation.  This is a compulsory insurance under NSW Strata Legislation.

OPTIONAL POLICY EXTENSIONS

Fidelity Guarantee

Protection for the Owners Corporation against fraudulent embezzlement or fraudulent misappropriation of the Owners Corporation's funds.

Office Bearers Liability

This cover protects the members of the Owners Corporation Committee where liability has arisen from an alleged or wrongful act, omission or breach of duty. Covers the liability and legal costs up to the sum insured. Fraudulent acts are not insured under this insurance policy.

Catastrophe

This cover provides an additional sum where the building is considered a total loss or partial loss due to catastrophe where a state of emergency is declared such as an earthquake, bushfire, tsunami or cyclone.  The insurance covers the increase in costs to repair/rebuild your building during such times of increased demand and reduced supply for builders and trades people. 

NB: Some insurers provide limited free cover (15% of building sum insured). Others who charge a premium offer a selected percentage of the sum insured (eg 35% or 40%). This is a specialised policy and should be discussed by the Owners Corporation committee if protection has not been purchased.  

Machinery Breakdown

This covers electrical parts that may breakdown for reasons other than maintenance issues.  This insurance can apply to boilers, pool pumps, air conditioning units and motors that operate garage doors.

Workers Compensation

Effective from 1st July 2008, Workers Compensation insurance is only compulsory for strata schemes paying annual wages and salaries exceeding $7,500.  Workers compensation insurance can be affected for all schemes where the Owners Corporation employs staff e.g. building managers, caretakers, gardeners etc directly and pay wages and salaries over $7,500.

The above information is an overview only and should only be read as general advice. Please contact our office or your Owners Corporation Manager to obtain a copy of the policy wording, Product Disclosure Statement for full conditions and exclusions or for personal insurance advice.