A professional strata building valuation is the most common way to determine the appropriate sum insured.
The valuation should cover:
- Full reinstatement (like-for-like rebuild)
- Debris removal and professional fees
- Inflation and cost escalation
CHU automatically indexes your sum insured at renewal, but valuations should be carried out regularly. In some states, valuations are legally required every five years.
Cladding refers to material fixed to the outside of a building for decoration or protection.
- Cladding may include timber finishes, fibre cement sheeting, aluminium composite panels (ACP) or expanded polystyrene (EPS).
- Where ACP or EPS is used, CHU may request additional information from the insured.
They are permanent improvements installed by a lot owner for their exclusive use. Examples include upgraded floorboards, renovated bathrooms or built-in cabinetry. These become part of the building once installed.
No. Strata policies cannot be cancelled mid-term by individual lot owners. Strata insurance is held by the Owners Corporation, not individual owners. If an owner has sold their unit they are no longer party to the strata policy. Any adjustments such as levy contributions would be typically managed by your conveyancer through the property settlement process.
Common area contents are items owned by the Owners Corporation that are located in shared spaces.
Examples include:
- Garden furniture in courtyards
- Curtains or blinds in communal areas
- Fire extinguishers and shared appliances in common areas
Permanent fixtures like driveways and letterboxes are covered under the building sum insured, not contents.
Fidelity Guarantee is cover for the Body Corporate in the event your funds are misappropriated during the period of insurance. Whilst only required by legislation in South Australia, Fidelity Guarantee forms part of CHU’s specialised cover and is standard on all Residential Strata policies.
It covers you if your home becomes uninhabitable after an insured event. CHU will cover reasonable accommodation costs for owners living in their lot. If you rent out your unit, this cover also protects your rental income if tenants need to vacate.
No. Strata insurance does not cover defects, wear and tear, or poor maintenance.
It is designed to cover sudden and unexpected damage (e.g. fire, storm or water damage), not ongoing maintenance or construction issues.
Strata insurance is arranged by the Owners Corporation (body corporate), not individual owners.
- All lot owners’ contribute to the premium through strata fees.
The policy covers the whole building and shared property on behalf of the group
In most cases yes. Strata legislation in all states and territories requires Residential Strata Insurance, but specific requirements vary.
The cost is shared between lot/unit owners and managed by the Owners Corporation (body corporate). Strata insurance can cover many types of dwellings including:
- Townhouse
- Unit/Flat
- Apartment
- Duplex
It is advisable to check what is covered under your strata insurance policy and determine if you require any additional coverage for personal belongings, improvements to your unit, or additional liability protection. If you live in an apartment, unit, villa or townhouse, we offer contents insurance to protect your personal belongings, as residential strata insurance only protects the building and not your personal property or possessions.
Strata insurance covers common property and shared areas in strata-titled properties, while home insurance covers individual units or houses. Strata insurance also typically includes liability protection for the body corporate and its members.