Many strata rental property owners have expectations that Strata Insurance will insure them for events occurring inside their apartment – this is not the case! If you own and lease a property, it is essential to take out Landlord Insurance to cover your fixtures and fittings, rent default and public liability for inside your apartment.
Strata Insurance provides cover for a range of circumstances specifically related to living in a strata community, including:
- Public Liability – cover for legal liability of the Owners Corporations.
- Contents – cover for common contents such as appliances, equipment, furniture, fittings and works of art in any common area for which the Owners Corporation is responsible.
- Fidelity Guarantee (optional extension) – protection for the Owners Corporation against fraudulent embezzlement or fraudulent misappropriation of the Owners Corporation’s funds and tangible assets.
- Office Bearers (optional extension) – protects members of the Owners Corporation Committee where liability has arisen from an alleged or wrongful act, omission or breach of duty.
Lia de Sousa, General Manager, Strata at Whitbread, says;
“Many people are not aware that Strata Insurance does not cover owner’s fixtures and fittings such as carpets, blinds, light fittings and public liability inside their lots/units. If strata unit owners neglect to take out appropriate insurance covers such as Landlord and Contents Insurance, then they could be exposed to a significant physical loss or public liability claim.”
If a visitor slipped inside your lot/unit and was hurt, the injured party might decide to sue the Owners Corporation to cover their medical expenses. In this instance, the Owners Corporation could say they are not responsible as the incident took place on private property. The owner of the lot/unit – the landlord – may then be held liable for the loss.
In another scenario, a pipe bursts in a property and causes serious damage to the carpets and walls. While a strata policy is designed to cover damage to the walls, the carpet would not be covered here. Carpet is classified as a contents item, and is therefore the responsibility of the property owner. In this instance, the owner would need to make a claim under their Landlord Insurance to repair the damage. Landlord Insurance should offer protection in these circumstances, as long as the cover has been extended appropriately.
Want to learn more about how Landlord Insurance can maximise your rental income?
Whitbread has published a short article providing tips on how quality Landlord Insurance can help you get the most out of your rental income.
To read the full article please click here.
For further information or guidance on Landlord Insurance and protecting your rental income, please contact your Strata Manager or Whitbread Insurance Account Manager.
T: 1300 424 627
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 License Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.