What Is Strata Insurance?
Residential strata insurance (also known as body corporate cover in some states) is an insurance that covers the property that is under the management of a strata title or body corporate entity. Generally, the premium costs of strata insurance are shared across the owners of strata titles as part of their strata fees and liabilities. In Australia, it is mandatory to hold start insurance under each state’s relevant strata legislation.
What Does Strata Insurance Cover?
- Personal accident cover
- Liability cover
- Loss of rent
- Building and common property
- Office bearers liability
- Fidelity guarantee
- Catastrophe cover
What Does Strata Insurance Typically Not Cover?
- Personal items
Its important that you discuss these requirements with your broker to ensure you understand what is covered and what is excluded.
Strata Insurance Price Fluctuations
In some parts of Australia strata insurance is more expensive, this depends on the level of risk. For example, Cyclone prone areas are exposed to greater risks and therefore are often more expensive than other areas.
What Factors Contribute To A Strata Insurance Ace Premium?
- Government taxes
- Replacement cost of the building
- the risk profile of the building
- Claims history
- Commercial activities held within the premises
- Fees and commissions
- Excess payments
Costs of common properties eg. car parking, stairwells, safety equipment, elevator and swimming pools.
Companies like MGA Insurance offer competitively priced strata and community title insurance and have access to exclusive in-house Residential and Commercial Strata products.