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.

Contents Insurance The Strata Collective

Furnishings and furnitureNoYes
Common propertyYes
Common property public liabilityYes
Liability within your apartmentNoYes
Clothes and personal itemsNoYes
Paint on walls and ceilingsSometimes - please checkYes
Floating floorboardsSometimes - please checkYes
Curtains and blindsNoYes
Light fittingsNoYes
Kitchen benches and appliancesYes
Bathroom cabinetsYes
Water damaged lights and light fittingsNoYes
Ceiling fansYes
Tenant malicious damageSometimesNoYes
Loss of rentFor owners in an insured eventNoYes
Eviction costsNoNoYes

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.

The Strata Collective

Level 9, 387 George St
Sydney, NSW 2000

Ph: 02 9137 2320

Strata Community Australia Member

Winner of the
SCA NSW Strata Community Awards 2020
Medium Category

Congratulations to The Strata Collective and Principal, Rod Smith for winning such a prestigious award.

See the full story and photos here.

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