Sharing space? Why not split the costs

It is mandatory for strata title properties to hold residential strata insurance across Australia.

Residential Strata insurance is for Residential strata titled properties - commonly units/flats, apartments or townhouses, with common areas such as stairways, lobbies, elevators, gyms and swimming pools. Duplex and Triplex houses which may only share common driveways or gardens are also considered strata titled.

A common residential strata insurance plan will provide cover for:

There are often exclusions, deductibles and limits which apply, so contact an Avoca Insurance Broker to discuss your specific insurance needs.

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Frequently Asked Questions

These include contents owned by the Body Corporate/Owners Corporation such as carpets within hallways and lobbies, pot plants, mirrors and other adornments within common areas. 

Also included are washing machines and dryers owned by the body corporate or owners corporation and used by all unit owners and housed in common laundries.

The cover provided by the Strata Building policy ends when any property is owned by the individual lot owner e.g. carpets and blinds within the unit/lot.

In general, strata insurance costs the same or less for each unit owner.

Each strata insurer develops and offers a unique commercial product in accordance with its underwriting appetite. Some common factors contributing to the premium include:

  • Government taxes on insurance (stamp duty and GST)
  • The age and condition of the building
  • The replacement cost of the building
  • The risk profile of the location
  • The claims history of the strata complex
  • The vulnerability of the insured property to an insured event (age, building codes, building design and materials)
  • Commercial activities carried out on the premises, such as holiday letting
  • Fee and commissions from agents
  • The level of excess payment selected by the body corporate, payable at the time of a claim
  • The costs of maintaining common property, for example car parks, stairwells, fire protection systems, lifts and pools

Accordingly, we recommend that you always insure for a minimum of $20,000,000 liability. 

If you are still unsure and would like to discuss Public Liability limits for your Strata entity, please CONTACT US to ask for advice specific to your situation.

Deductible or an EXCESS is a set amount that you have to pay from your pocket when making a claim. 

For example, if you have a deductible/excess of $500, and your total claim cost is $3,000, then you are responsible for paying for $500 and the remaining amount $2,500 will be covered by insurance company.