Here are the most common questions we get about Residential Strata Insurance.
Question:
What is a building generally covered for under a Residential Strata Insurance policy?
Answer:
Strata Insurance policies generally cover material damage as a result of an insured peril to structural fixtures including fixed plant, machinery and underground services. They also generally extend to provide cover for proprietors’ fixtures, fittings and improvements which form part of the building. Some of these items include built-in ovens, stovetops, kitchen cupboards, hand basins, baths, showers and spas and pools in common areas.
Question:
Are contents usually covered under a Residential Strata policy?
Answer:
Strata Insurance specifically excludes contents within individual units such as carpets, curtains, blinds, light fittings and electrical appliances not actually wired into the premises. These items should be insured by your Contents Insurance or Landlord Insurance policy.
Question:
Should strata properties get a valuation on their building?
Answer:
The law requires that buildings are insured for full replacement and reinstatement value. Resolute recommends that you obtain a professional valuation for the properties you manage at least every 3 years.
Question:
What is a flood?
Answer:
The flood definition has been standardised for all ‘retail’ products which includes residential strata. Refer to the relevant insurer’s Product Disclosure Statement for a full definition.
Question:
Is flood covered under a Strata Insurance policy?
Answer:
Strata Insurance policies do provide storm cover but generally do not automatically provide flood cover. Flood cover may be requested by strata owners, however insurers will assess their willingness to offer flood cover based on the location of property and the proximity of rivers, lakes and dams. This extension of cover, if granted, will attract an additional premium.
Question:
What if a Lot Owner rents out their unit?
Answer:
Lot owners need to purchase Landlord Insurance as separate policies to the Strata Insurance. Landlord Insurance provides insurance protection for their liability as a Landlord. In addition the insurance provides for Landlord’s contents, loss of rent by an insured peril and other benefits.
Question:
What type of insurance should a Lot Owner have?
Answer:
An owner occupier of a lot, should arrange cover for their contents eg furniture, personal contents, jewellery, collections and other special items. Personal Contents Insurance policies provide legal liability protection for any third party injuries or damage to third party property that may occur anywhere in Australia.
Question:
What type of insurance should a Tenant have?
Tenants should arrange their own Contents Insurance. Tenants’ Contents and Public Liability are not covered by the Landlord’s Insurance policy.
Question:
How should my clients make a claim?
Answer:
Prompt notification of any fire, accident, theft, malicious damage or injury, which may lead to an insurance claim is of the utmost importance, contributing towards achieving a speedy settlement from the insurers.
The provision of as much detail as possible when reporting incidents on the insurance claim form is of equal importance to avoid delays. We’ve created a claims checklist to assist you prepare your claim. See our article on lodging claims.
If you need to notify us of a claim, please fill out our online claims lodgement form or contact our Claims Department by phone 1300 668 033.
If your property is professionally managed, contact your Strata Manager and they will advise you of the procedures for lodging a claim. Strata Managers wishing to lodge a claim on behalf of their client should also use our online claims lodgement form.
Question:
How do my clients get a Certificate of Currency?
Answer:
Should your clients require a Certificate of Currency or need to note the interests of a Mortgagee on the building policy, they should complete the online application. A $44.00 fee applies for a Certificate of Currency which can be paid for using our online payment facility. Certificates will be issued within three working days. If they require a certificate urgently, they should contact our office directly and a fee of $66.00 will apply.