Contents Insurance for Lot Owners
Do I need to take out Contents Insurance?
In our roles as Strata Managers, time and time again, we see Owners who have been impacted by damage to their apartments that is caused in another apartment, a building failure (defect) or a common property leak that damages their personal property. Very often these items are not covered by Strata Insurance and should be Insured under a contents or landlords insurance policy.
We wish to advise all our owners that the contents and fittings within your lot ARE NOT covered by the Strata building insurance. This is the case irrespective of whether the damage is caused by the building/a claimable event under the Strata insurance Policy. E.g. if there was a storm which caused the roof to leak and an Owners contents were damaged as a result.
ITEM, COVERED BY:
| STRATA | CONTENTS | LANDLORDS INSURANCE |
|---|
| Furnishings and furniture | No | Yes
| No |
| Building | Yes | No | No
|
| Common property | Yes
| No | No
|
| Common property public liability | Yes
| No | No
|
| Liability within your apartment | No | Yes
| Yes
|
| Clothes and personal items | No | Yes
| No
|
| Carpets | No | Yes
| No
|
| Paint on walls and ceilings | Sometimes - please check | Yes
| No
|
| Floating floorboards | Sometimes - please check | Yes
| No
|
| Wallpaper | Sometimes | Yes
| No
|
| Curtains and blinds | No | Yes
| No
|
| Light fittings | No | Yes
| No
|
| Kitchen benches and appliances | Yes
| Yes
| No
|
| Bathroom cabinets | Yes
| Yes
| No
|
| Water damaged lights and light fittings | No | Yes
| No
|
| Ceiling fans | Yes
| Yes
| No
|
| Tenant malicious damage | Sometimes | No | Yes
|
| Loss of rent | For owners in an insured event | No | Yes
|
| Eviction costs | No | No | Yes
|
We wish to advise all our owners that the contents and fittings within your lot ARE NOT covered by the Strata building insurance. This is the case even if damage or loss to
your contents or fittings is caused by, for example, a storm or leak which has resulted in damage to the building.
Lot owners are responsible for obtaining and paying for their own contents insurance cover. Although contents cover is not mandatory by law, it is highly recommended as a protection to your own valuable assets within your lot.
Contents can include:
- Furnishings and furniture
- Clothes and personal items
- Electrical appliances that are not hardwired to the building
- Carpets and underlay
- Floating floorboards
- Wallpaper
- Curtains and blinds
- Light fittings
- Paintwork on walls and ceilings
- Ceiling fans
You can obtain quotes for Contents insurance directly from the major insurance companies or via the compare the market insurance websites.
Contents insurance cover is offered by a wider range of insurers than just those insurers who provide Strata building policies. For example, there may be multiple policy discounts available to you for placing your contents insurance with the same insurer as your motor vehicle.
Alternatively if you would like to have a broker quote and place the contents insurance for you, please contact The Strata Collective and we will arrange this for you.
Landlord's Insurance
If you have an investment property you will still be responsible for some items that are considered to be contents for insurance purposes (such as the unit fittings and paint) therefore taking out Landlords Insurance is recommended. Landlord insurance policies may also cover additional items such as malicious damage by tenants, loss of rent, and eviction costs.
Policy wordings (and premiums) can vary widely for Landlords Cover, depending on the extent of policy inclusions. As with Contents insurance, quotes can be obtained from the major insurers or via an online policy comparator such as Canstar or Compare the Market. If you would like a broker to assist in selecting and placing Landlords insurance for you, please contact us at The Strata Collective.
This advice is general and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.