Do I need Strata Insurance in NSW?
If you own Strata Property in New South Wales (or any part of Australia for that matter), you are required to pay towards Strata Insurance, which is a specific type of insurance designed for the unique needs of Strata Schemes.
Unlike standard home insurance, which is the responsibility of the individual household, the premiums of Strata Insurance are shared among all owners of the Strata Scheme. The cost to you is typically included in your Strata Levies.
Read this short guide to find out what is and isn’t covered by Strata Insurance and how Strata Managers in NSW can help you to choose the most cost-effective insurance for your needs.
What does Strata Insurance cover?
Strata Insurance is usually managed by the Owners Corporation of your Strata Scheme, often with the help of a Strata Manager. Like other maintenance fees you may be paying, this insurance covers the building itself and Common Property, but not your own home contents.
Your property’s Strata Plan and By-laws define what counts as Common Property. In most schemes, this means:
- building structures and windows
- common corridors, common rooms and shared services
- common gardens and gardening equipment
- lifts and stairwells
- car parks
- common swimming pools
- some wiring
Strata Insurance may cover these against damage and provide liability cover for people injured on Common Property. Check the terms of your Strata Insurance or talk to your Strata Manager to find out the specifics.
What isn’t covered?
Strata Insurance can have exclusions like any other type of insurance. For example, your Strata Scheme may not be insured against natural disasters such as fire or flooding.
Keep in mind that your personal belongings will not be covered by Strata Insurance. It’s recommended that you take out standard home contents insurance to make sure your valuables are protected.
How does Strata Insurance work?
A number of insurance companies offer Strata Insurance. Taking out insurance, keeping it up to date and making claims is the responsibility of the Owners Corporation, who will divide the cost of premiums between all owners as part of your Strata Levies.
It’s important that your Strata Scheme keeps up with insurance payments, or you could face penalties for breaching regulations and you won’t be covered in the event that you need it.
Owners Corporations may deal with insurers directly or go through their Strata Manager. A Strata Management Company that employs an insurance specialist could negotiate a better deal on your insurance cover and premiums for you, compared to doing it yourself.
Strata Insurance Specialist in NSW
At Lake Group Strata, we have experienced insurance coordinators who work with Owners Corporations in NSW to make sure their scheme’s insurance is up to date and administered as required by law. We can also obtain insurance valuations and quotes to help you get the most cost-effective deal.
To find out more about our Strata Management services across Lake Macquarie, Newcastle, the Hunter Region and Myall Lakes, call our Charlestown office on 02 4942 3305 or our Maitland office on 02 4933 6466.