Strata Insurance is a specialist area with tight regulations on body corporates which vary from state to state.

There are common elements however which apply regardless of whether your complex is a simple duplex or a 20 storey apartment complex with restaurants at the base.

All strata policies are based around a building sum insured (including common contents) which is taken from a valuation the body corporate must organize periodically.  This building sum insured includes Accidental Damage and Perils, and Flood Cover may be available for an extra cost depending on location.  Basic cover is often included for small air-conditioning units, but larger systems (or certain States!) may require this to be insured separately under Machinery Breakdown.

The building sum insured is generally extended to provide a Catastrophe buffer which increases the nominated value insured in the event of a government declared disaster and additional cover may also be added for either Loss of Rent (for investment owners) or Temporary Accommodation costs (for owner occupiers).

Liability cover is the second important element of the package, but remember this cover is only for areas where the body corporate is responsible.  It is no substitute for individual lot owners having their own liability cover for anything happening internally or within exclusive use areas.

Larger body corporates will want to pay close attention to the covers available for committee members and the governance of the complex including Office Bearer’s Liability, Legal Expenses and Fidelity as well as protection for Voluntary Workers or even Worker’s Compensation (again, depending on State regulations).

To get a quote on your complex, you’ll need to let us know standard construction and valuation details as for any building, but we’ll also want to know about common facilities (e.g. pools/gyms), the number of lots and a spread of their usage – e.g. standard residential, holiday let or commercial.