Commercial Strata Insurance
Commercial strata insurance is a mandatory cover across Australia for owners of a strata titled property.
Any owner of a property that is part of a complex of units with shared ownership of certain areas will have to take out a communal strata insurance policy with the other owners.
These policies are mainly designed to cover the building and common areas of a property for damage, destruction, and liability cover for personal injuries.
One of the issues we have encountered with many of our commercial strata policy clients is that they are often not fully protected by taking advantage of optional policy extras.
Let me explain.
What Is Commercial Strata Insurance?
Commercial strata insurance is a type of policy that is designed to cover common areas of a property that are shared among multiple owners.
In a commercial setting, this is likely to include shopping centres and office buildings but may also cover mixed-use properties of commercial and residential units.
The important thing is that the property consists of multiple units with shared spaces such as lobbies, driveways, footpaths, stairs, and even lifts.
These areas are jointly owned by the members of the owners’ corporation and therefore are the legal liability of those members should there be an accident, damage, or an injury.
Commercial strata insurance policies commonly extend to the following protections:
– Building and common area contents
– Emergency and temporary protection
– Legal liability
– Temporary accommodation, rent, and storage
– Removal and storage of insured property due to damage
– Architects’ and professional fees
– Emergency and temporary protection costs
– Government fees, contributions or imposts
– Legal fees
Not all of these are automatically included in policies but rather offered as policy extensions.
If you have any concerns about your current strata building insurance, then talk to one of our property insurance brokers at Aspire Insurance on 1300 886781.
We will advise you on any risks you may still be exposed to in order to fully protect your financial interests.
What Risks Does It Cover?
Some of the common mistakes we see around commercial strata insurance come from confusion about what is and is not covered by standard commercial property insurance.
Many of our clients ended up in situations where the shared property was underinsured, resulting in all members of the owners’ corporation being exposed to significant risks.
In our experience, the most common risks that owners overlook include these three areas.
1 – Machinery Breakdown
This is an optional cover on most policies, but it’s also a type of cover that could end up saving you a fortune. It’s designed to cover electrical and electronic machinery that forms part of the shared areas.
Examples of these might be pool pumps, air conditioning units in foyers, as well as lifts and escalators.
We have encountered several situations where the lift in an office block breaks down due to a fuse box fire.
Without this type of policy extra, all the owners would have to split the costs of the repair, which could quickly run into the thousands of dollars.
2 – Flood Cover
On most policies, flood cover is an optional extra, and many owners mistakenly dismiss this as not required because they don’t own property close to rivers, lakes, or the ocean.
But you don’t have to be in a known flood area to be at risk from flood damage.
There have been countless situations where severe storms have caused large volumes of water to cause flooding, as well as storm drains and canals to overflow.
Such situations can cause hundreds of thousands of dollars worth of damage to commercial buildings, and common areas of shared ownership would not be covered under your standard property insurance policy.
This is not a risk worth taking.
3 – Office Bearers Liability
This optional cover is designed to protect the office bearers of the Body Corporate from legal liability due to wrongful acts while carrying out their duties.
Not only is it important to add office bearer protection to your policy, but you’ll need to make sure that the sum insured is adequate for the type and size of the property in question.
Many of our clients are surprised by the risks they could be exposed to through inadequate policy wording.
Make sure you don’t leave yourself exposed to unnecessary financial risks and ask one of our brokers for a complimentary policy review and a no-obligation quote.
Partnering With Aspire Insurance
All of our clients at Aspire Insurance gain the same level of peace of mind through a combination of services that other insurance brokers simply cannot compete with.
Accidental damage or destruction of assets is a stressful enough problem to deal with. But you shouldn’t make that more stressful by having to deal with insurance claims on your own.
That’s why we offer a 24/7 support service to ensure you get the help you need when you need it the most.
Policies Tailored To Your Needs
Through our careful policy review process, we will ensure that you only consider the policies that offer you the best possible protection. This helps you avoid situations where you aren’t covered for common risks or where the sum insured is inadequate.
Annual Policy And Premium Review
We review your policy and overall risk situation of the strata property at each policy renewal date. This way, you will always have the best possible policy wording and premiums available for consideration.
Face To Face Contact
One of the biggest problems with online quoting systems is that they don’t offer the same peace of mind that comes with fully understanding your insurance needs. Our insurance brokers will always deal with you directly, meaning that you’ll never have to use automated systems.
Call Us Today
If you’d like to take advantage of a full policy review and a no-obligation quote to maximize your financial protection, then call our team today on 1300 886781.
Our experts in commercial property insurance are standing by to answer all your questions and ensure that you don’t end up taking unnecessary risks.