What is Owners Corporation Insurance?
In Australia, owners corporation insurance (also known as body corporate or strata insurance) is essential for owners of strata-titled properties, including apartments, townhouses, and other multi-unit complexes. This insurance plays a crucial role in protecting the common property and the welfare of unit owners, ensuring coverage for damage to common areas and structural elements, while also mitigating risks and liabilities.
Smart cover for your owners corporation or body corporate
CHU is Australia’s strata insurance specialist. CHU offers comprehensive, competitive insurance for the members of an owner's corporation or body corporate.
Residential Strata Insurance Plan
Commercial Strata Insurance Plan
Insurance Plan to meet your needs and obligations
Each state has different strata laws, however owners corporations (also known as body corporate) across Australia all carry similar responsibilities for the safety, upkeep, repair and good governance of their buildings.
What’s more, an owner's corporation can be held liable for any personal injury or property damage that occurs in connection with common areas or common property. That’s why so many owners corporations across the country turn to CHU Residential Strata Plan and CHU Commercial Strata Insurance Plan for their mandated building insurance and liability cover.
Residential Strata Insurance Plan
Commercial Strata Insurance Plan
What we cover for Owners Corporations
Owners corporation insurance covers the replacement, repair, and rebuilding of the strata property in the event of damage caused by natural disasters, fire, and unexpected incidents such as vandalism or water damage caused by burst pipes.
Additionally, owners corporation insurance protects property owners in case of legal liabilities or injuries occurring in common spaces. This helps property owners have greater control and protection over their properties, ensuring peace of mind and minimising potential financial and legal costs.
1. Building Insurance
Covers damage to the physical structure of the building and shared spaces within the strata property. This includes damage caused by natural events such as storms, fire, and water damage caused by burst pipes.
2. Common Area Contents Cover
Extends protection to the fixed and portable possessions within the common areas of the strata property. Contents insurance for strata properties extends to malicious damage or vandalism, theft, water, fire, and storm damage. It encompasses items owned by the Owners Corporation like furniture, equipment, and decorations in shared spaces like lobbies, hallways, gyms, and community rooms
3. Public Liability Coverage
Provides financial protection in case of injuries or property damage to visitors in common areas. It covers legal costs and compensation payments if a resident, visitor, or third party is injured or their property is damaged due to negligence or accidents in shared spaces.
4. Office Bearers Liability
Covers the legal costs and damages awarded against committee members if they face claims for wrongful acts, errors, or omissions in managing the strata property.
5. Catastrophe Insurance
Provides additional coverage for damage caused by major and unforeseen events such as earthquakes, floods, bushfires, and extreme storms. Catastrophe insurance provides property owners with the finances needed to rebuild or repair the property in the aftermath of such an event.
Why Choose CHU Insurance
24/7 Emergency Hotline
Over 40 years of insurance expertise
Peace of Mind for Common Strata Risks
The owners corporation must ensure that all common areas of the strata property are well maintained and free of any potential risks or safety hazards. Insurance plays an important role in mitigating these risks, however, being mindful of the common strata risks can further enhance property safety and resident wellbeing.
Some of the most common strata risks include:
1. Plumbing and electrical issues
From broken pipes causing water damage to faulty wiring leading to electrical fires, insurance plays a crucial role in covering the cost of repairs and replacements.
2. Fire damage
Whether caused by faulty appliances, cooking accidents, or unattended candles/fireplaces, insurance can be used to replace burnt/damaged structures.
3. Theft and vandalism
If property is damaged with malicious intent (such as graffiti and smashed windows) or if someone steals items from your strata property, insurance can compensate for the losses.
4. Personal injury
If a resident or visitor is injured in a common area, insurance can cover the medical expenses and legal costs associated with liability claims. Injuries often occur as a result of accidents such as slips on wet floors, trips over uneven surfaces, or falls from poorly maintained steps and walkways.
5. Legal claims against the body corporate:
Disagreements may arise regarding funds, property maintenance, or allegations of non-compliance against the body corporate. Insurance covers legal expenses in the event a dispute is escalated into legal action.
Ensure the safety and wellbeing of your property and residents with CHU's comprehensive insurance solutions. Request a quote today for residential or commercial strata insurance.
Residential Strata Insurance Plan
Commercial Strata Insurance Plan
Owners corporations and commonly faced risks
Damage can come from a leaking roof, broken plumbing, electrical wiring issues, inadequate security and much more. Even if a problem is unforeseen or unexpected, the body corporate may still be liable to cover the costs of repair.
All states and territories require the owners corporation of a strata scheme to manage common property and keep it in a reparable state.
Make sure your building and your committee are adequately covered by their strata insurance policy. CHU’s product offers cover for the office bearers of the owners corporation should they become legally liable to pay compensation for any wrongful act they commit while carrying out the functions of their position.
Residential Strata Insurance Plan
Commercial Strata Insurance Plan
Or contact your local CHU Insurance specialists
Frequently Asked Questions
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What is an owners corporation and why do I need insurance for it?
What is an owners corporation and why do I need insurance for it?
An owners corporation (also known as a body corporate in some states) manages and maintains common property in strata-titled buildings. Insurance is essential to help maintain and protect shared areas and assets from damage, liabilities, or unexpected events.
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What is not covered by the Owners Corporation Insurance?
What is not covered by the Owners Corporation Insurance?
Typically, owners corporation insurance does not cover the personal belongings of individual unit owners/residents. Owners corporation insurance only covers the shared or common property within the strata building.
