Residential Strata Insurance
Owners of certain types of commercial or residential real estate are legally obliged to take out more than just building and contents insurance.
Where a townhouse, unit, or apartment is concerned, you must take out residential strata insurance.
Shared common areas, buildings, and equipment are exposed to the same types of risks as the individual units, but the type of policy required is completely different.
Unless you have the right policy cover, you could be exposed to a level of risk that would have significant financial impacts. Our team here at Aspire Insurance has the experience necessary to make sure that common property is fully protected.
Let me start with an explanation of why it’s a critical insurance cover.
What Does Residential Strata Insurance Cover?
First of all, let me say that both residential and commercial strata insurance is not an optional cover.
If you own real estate in an apartment block, townhouse complex, or as a unit of a larger building, then every Australian state makes it a mandatory policy.
It’s a type of policy that covers common property shared between multiple units within a building or complex of buildings.
This could be walkways, green areas, security fencing, a lobby, and even electrical equipment and machinery for heating and air conditioning.
These are areas not covered by your regular insurance for apartment or townhouse units.
But they are still exposed to the same types of risks ranging from accidental damage, to flooding, or even malicious damage.
These common areas are the joint liability of all the individual owners combined, with that group commonly referred to as the body corporate.
Even if that damage happens away from your unit or was the fault of someone else, you could end up in a bad financial situation where you would have to share in the expenses.
A residential strata policy would be taken out and paid for by the body corporate collectively.
It is not a policy that every single owner is required to take out individually.
What Are Your Potential Risks?
Whether you own an apartment in a large building or a townhouse in a small gated development, the risks you could be exposed to are the same.
Everything from personal or workers’ injuries to legal liability for damage to other people’s property are risks to consider.
But there are three areas that many owners of strata title properties underestimate.
And they are often optional extras with many insurance policies, meaning that you’re not automatically covered for them.
1 – Machinery Breakdown
This cover is aimed at protecting you from financial losses that may result from electric or electronic equipment breaking down that is part of the common property.
Examples would be pool filtration pumps, air conditioning units in the foyer or even lifts.
Even a minor mechanical failure with some of these machines could run into the thousands and tens of thousands of dollars that would have to be shared by all the owners.
Fortunately, this is something you can add to your policy for complete peace of mind.
2 – Flood Cover
We have encountered many owners of strata title properties who completely dismiss the need for flood damage. Their property could be miles away from the ocean, lakes, or rivers, so they think that accidental damage from flooding is a low risk.
What these owners don’t factor in is the risk from runoff water due to storms, or even flooding as the result of canals or storm drains overflowing.
And because water will find its way into every last corner of a property, it’s one of the most costly situations to have to deal with.
3 – Cover For Floating Floors
These are the wood or laminate type floors that are held in place by their own weight. When strata property owners encounter a situation where a burst waterpipe might damage their floating floors, most owners claim on their home and contents insurance.
However, if the body corporate has an optional extra for floating floors, then all owners would be protected and could claim under the residential strata policy instead.
If you’re uncertain whether your current policy provides you with all the financial protection you need, then speak to one of our dedicated team members at Aspire Insurance.
Call us for free advice and a no-obligation policy review and quote on 1300 886 781.
What Will You Gain By Partnering With Aspire Insurance
Our team here at Aspire Insurance has developed a client relationship process that has resulted in a very loyal customer base.
Rather than battle with online quoting systems, we have an approach that will ensure your legal liability exposes you to the least amount of risk.
24/7 Expert Advice
We have a dedicated team that is available 24/7 to help you directly deal with any type of insurance claim.
These are stressful situations, and having someone directly advise you on what steps need to be followed to file and process a claim quickly is a valuable service that all our clients deserve.
A Policy For Your Specific Needs
Residential strata insurance is generally provided online with the most basic cover legally required.
But this could still leave you open to unnecessary risks for your particular property.
We ensure that you only consider those policies that provide you with the right cover for maximum peace of mind and limited legal liability.
Automatic Annual Cover Review
Just like everything else in life, insurance policies constantly change in cover and pricing. Our clients receive an annual policy review to save you having to go through the same process of finding the best deals every year.
A Personal Relationship
When you deal with Aspire Insurance, you’re dealing with real people and not some automated online system that involves a lot of guesswork.
Our general advice is that you should avoid online quoting systems if you really want to make sure you have maximum financial protection.
Contact Us Today
If your current residential strata insurance is due for renewal, or you want to be prepared for the next policy anniversary, then contact our team on 1300 886 781 today.
We have a team of experts in real estate insurance standing by to make sure that you get the best possible policy to fully protect your financial interests.