Strata insurance covers shared buildings and common property owned by the owners corporation (body corporate). It typically includes the building structure and common area contents (lobbies, lifts, sealed driveways, pools) and includes liability cover if someone is injured on common property.
Our policy encompasses additional and increased benefits over the minimum required by law.
Yes. Strata insurance does not replace the need for contents or landlord insurance.
Landlord Insurance: Protects against tenant-related losses (e.g. unpaid rent, damage).
Owner-occupiers: Contents insurance covers personal belongings against theft, damage or fire.
If your building is insured for less than its replacement value, there may be a shortfall in your claim after a major loss. If this eventuated, this would leave lot owners responsible for covering the shortfall. Ensure valuations are a regular agenda item at your building’s AGM to reduce the risk of underinsurance.
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.
Liability to others (sometimes referred to as Public Liability) is a compulsory requirement under legislation. The minimum limit of liability varies between states and territories as follows:
ACT – minimum of $10,000,000
NSW – minimum of $20,000,000, as well as mandatory cover for voluntary workers
NT – minimum of $10,000,000
QLD – minimum of $10,000,000
SA – minimum of $10,000,000, as well as mandatory cover for fidelity guarantee
TAS – minimum of $10,000,000
VIC – minimum of $20,000,000
WA – minimum of $10,000,000
It covers legal costs if claims are made against members of the strata committee. Protection applies to wrongful acts, errors, or omissions committed while carrying out official duties.