Strata Title / Body Corporate Insurance is designed to protect the common property of a strata scheme, which is typically managed by a body corporate or owners’ corporation. This type of insurance is essential for shared buildings and complexes, as it covers areas that individual unit insurance does not.
What is Typically Covered:
- Building and Common Contents: Covers the repair or replacement of the building structure and common area contents due to events like fire, storm, or vandalism.
- Public Liability: Provides coverage for legal liability if someone is injured or their property is damaged within the common areas of the property.
- Office Bearers’ Liability: Protects committee members of the body corporate against personal liability when carrying out their duties.
- Voluntary Workers: Offers protection for people who voluntarily work on behalf of the body corporate, such as gardening or maintenance.
- Fidelity Guarantee: Covers loss of money belonging to the body corporate due to dishonest acts by committee members or employees.
- Catastrophe Cover: Provides additional funds to cover costs if a major event, like an earthquake, affects the insured property.
What is Not Typically Covered:
- Individual Unit Contents: Personal belongings within an owner’s unit are not covered; unit owners need their own contents insurance.
- Wear and Tear: Gradual deterioration of the property over time is not covered.
- Defects and Poor Workmanship: Pre-existing defects or damage from poor construction or design are typically excluded.
- Asbestos Removal: Costs associated with the removal of asbestos may not be covered unless resulting from an insured event.
- Landscaping: Plants, soil, and landscaping features may not be covered except for specified events in the policy.