Strata Title Insurance provides cover for buildings (home units, villas, town houses, commercial or retail strata properties) which are registered under strata or unit title legislation.
If you own a portion of a large apartment block, a Townhouse, villa, duplex, factory, warehouse storage units a retail shop or office which is strata titled then you need Strata Title Insurance.
Each state and territory has different legislative requirements that deal with insurance for strata title properties. You should always check that your insurance meets those legislative requirements.
In Tasmania, the body corporate must insure all buildings and other improvements (if any) on the site. This applies whether the buildings or improvements are on common property or are on privately owned lots.
Strata insurance covers loss or damage to the building itself and common property, such as walls, garden, lifts, car parks and balconies.
If you own a strata title then your insurance policy must:
- cover damage from fire, storm, tempest and explosion, and costs incidental to reinstatement; replacement of the buildings, including the cost of removing debris, and the fees of architects and other professional advisers; and
- provide for the reinstatement of the buildings and improvements to their condition when new
- cover public risk in respect of the site.
Strata policies do not cover your contents and personal items separate insurance cover is required for this.
The body corporate must also take out and maintain any additional insurance agreed to by ordinary resolution of the body corporate. This could include loss from dishonesty, negligence or other wrongful conduct.
Talk to us today about what other insurance you may require to adequately cover your Strata Title risks.