Residential Strata Insurance Plan

How is strata insurance different from home insurance?

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.

Do I need to get additional insurance if I already have strata insurance?

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. We offer contents insurance if you live in an apartment, unit, villa or townhouse to protect your personal belongings, as residential strata insurance only protects the building, not your personal property or possessions.

Is Residential Strata insurance mandatory? 

Generally speaking, strata Insurance is a legal requirement and normally the responsibility of the strata title owners, with the cost split between the individual unit owners. If you live in one of the following, chances are you need Strata Insurance. 

• Townhouse 
• Unit/Flat 
• Apartment 
• Duplex 

What is the excess on my policy?

An excess is an amount a policy holder must pay if they proceed with making an insurance claim on their insurance policy. The standard excess on our residential policies varies by total insurable value:  

• For policies with a building sum insured < $2M – $1,000 excess applies. 
• For policies with a building sum insured > $2M – $2,000 excess applies. 
• For policies with a building sum insured > $50M – $5,000 excess applies. 

You may choose to voluntarily increase or decrease this excess. This may result in changes to your premium. 

There may be additional excesses imposed depending on the individual situation, such as claims performance, the presence of defects or other issues. Please check your quote thoroughly for more information. 

Are there any exclusions to the Residential Strata Insurance Plan?

Yes. General exclusions are outlined in the General Exclusions section of the Product Disclosure Statement and Policy Wording. There are also policy specific exclusions to the Residential Strata Insurance Plan located within each policy section.

Sometimes, we may place additional exclusions on your policy in specific situations; please review your policy carefully and contact us for information on any other specific exclusions. 

Why do I need Loss of Rent and Temporary Accommodation when my building is owner occupied? 

The standard loss of rent and temporary accommodation sum insured limit that is offered under Policy 1 is 15% of the building sum insured value. This benefit covers owners who lease out their lot but also lot owners who reside in their unit - if the property becomes uninhabitable or unfit for purpose due to a claimable event, CHU will cover the reasonable costs for the residing owner to live in accommodation, or the rent that the owner will lose as a result of the tenants vacating.  

What is Fidelity Guarantee? 

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. 

What is Common Area Contents? 

A range of items that are owned or the legal responsibility of the Owners Corporation and are located in or adjacent to the common areas of the strata property. These items include furniture, furnishings, household goods, light fittings, internal blinds, curtains, fire extinguishers, built-in or freestanding appliances, carpets, floor rugs, and various other items. For example:  carpet in shared staircase, garden furniture in a communal backyard.  Items such as driveways, letterboxes, lighting and any other permanent fixtures or structures are covered by the building sum insured. 

Can I cancel my policy if I’ve sold my unit? 

We do not cancel strata policies mid-term due to sale. Strata insurance policies in Australia are not held by the owners of a unit, but rather by the strata scheme as an entity. If an owner has sold, and no longer forms part of the Owners Corporation, they are no longer party to a strata policy. In most cases, pro-rated insurance payments are considered as part of a settlement process between a lot owner and conveyancer.

What is Lot Owners Fixtures and Fittings? 

Lot owner’s fixtures and fittings refers to any fixture or structural improvement installed by a lot owner for their exclusive use and which is permanently attached to or fixed to the building so as to become legally part of it. This includes any improvements made to an existing fixture or structures. 

How does Office Bearers' Legal Liability protect lot owners? 

Office Bearers' Legal Liability protects lot owners by providing coverage for legal expenses that may arise from claims made against the Office Bearers of the strata-titled property. This includes claims for wrongful acts, errors, or omissions committed by the office bearers in the course of their duties. The specific coverage details are outlined in the Policy Wording.

What is the minimum amount of Liability needed for my state and is there any other covers that I must have for my state for Residential Strata? 

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:  

WA $5,000,000 in a survey strata or non-single tier strata scheme (e.g. A multi-storey block of flats) $10,000,000 in a Single Tier Strata Scheme: 

TAS - minimum of $5,000,0000 

VIC - minimum of $20,000,000 

SA - minimum of $10,000,000, as well as mandatory cover for fidelity guarantee  

QLD -  minimum of $10,000,000 

NT - minimum of $10,000,000 

NSW - minimum of $20,000,000, as well as mandatory cover for voluntary workers 

ACT - minimum of $10,000,000 

What is Cladding? 

Cladding is a broad term referring to material used to provide a decorative finish on the outside of a building. Common cladding materials may include timber, weatherboard, fibre cement, vinyl and composite materials such as Aluminium (ACP) or Expanded polystyrene (EPS).  and metal. 

Where ACP or EPS cladding materials have been used, CHU may require further information, such as product name, percentage of coverage and confirmation from a qualified professional that the cladding complies with the National Building Code.  

How do I know how much to insure my building or strata for? 

Obtaining a current strata building valuation is the best way to know how much to insure for. The valuation needs to accommodate for the full reinstatement of your property so it is not worse or less extensive than when new, along with including allowances for additional costs such as removal of debris, professional fees and cost escalation.  

Recent escalations in building prices mean that if your building has not been valued in the past 12 months, there is a likelihood it is underinsured, and in some states and territories, there is a requirement to obtain a valuation at least once every five years. Without being otherwise directed, CHU will automatically index the sum insured at each renewal.  

I have taken out Residential Strata Insurance - do I require any other insurance? 

Although not legislated, we recommend Landlords insurance cover for those leasing their strata unit, to continue to receive rent if your tenant suddenly departs or damages your property where it is unfit to be occupied, and to cover items such as carpets, blinds and appliances. For those occupying their own strata unit, we recommend Contents insurance cover for your fixed and portable possessions to protect from theft, accidental or malicious damage, water damage, fire and storms. 

Strata Insurance Queensland

In Brisbane and throughout Queensland, body corporates and community title schemes bear the responsibility of maintaining and ensuring the safety of common areas as stipulated by the Body Corporate and Community Management Act 1997 (Qld). You can find out more about strata insurance for QLD here.

Strata Insurance New South Wales

In Sydney and New South Wales, owners corporations bear the responsibility of managing five key areas within their scheme: property, finances, insurance, records, and building defects, as mandated by the Strata Schemes Management Act 2015 No 50 (NSW). Find out more about legislation on how strata are managed in NSW.

Strata Insurance Victoria

Throughout Melbourne and Victoria, owners corporations are entrusted with fulfilling a spectrum of responsibilities delineated in the Owners Corporation Act 2006 and additional regulatory frameworks.

In line with our dedication to residential strata insurance, CHU provides comprehensive protection tailored for Victoria's owners corporations. Learn more about it here.

Strata Insurance South Australia 

In South Australia, the responsibility for maintaining the safety and maintenance of common property falls upon state-specific strata schemes and community corporations. Our comprehensive strata insurance policies encompass coverage for public liability, building damage and repairs, theft from common areas, and recovery costs associated with catastrophic events for your residential strata. Learn more here.

Strata Insurance Western Australia 

In Perth and throughout Western Australia, the responsibility for maintenance and repair of common property, as well as public liability in common areas, lies with strata companies. Significant reforms to shared and community titles are currently underway in Western Australia. CHU's comprehensive strata cover ensures protection for strata companies in WA. Learn more about it here.