Whether you are a Strata Manager, Council Member, or Strata Owner, it is important to protect your investments from the many risks effecting Residential and Commercial Strata in Australia. The foundation of a Residential Strata insurance or Commercial Strata insurance policy is based on covering the Building and Legal Liability for Strata Corporations and their owners. Traditionally this covers the Owners from Loss or Property Damage to the Building and Common Contents as well as indemnifying the Body Corporate for sums they become legally liable to pay with respect to third party property damage and personal injury which occur at the premises or within Australia.

What is in a Strata Title insurance policy?

Strata Insurance policies have evolved to include a wider scope of coverages, such as:

Loss of Rent/Accommodation

If a unit becomes uninhabitable following an insured event, to ensure income protection the owner can claim for loss of rent or alternative accommodation whilst the premises are unfit for occupancy due to property damage

Legal Defense Expenses

Covers the Owners Corporation against legal defence costs where the Strata is joined in litigation with another party, as well as the costs of expenses incurred in defending actions brought against the Body Corporate.

Office Bearers Liability

This insurance cover protects the Body Corporate (which may include the Strata Manager acting on the committee’s behalf) against the liability and legal costs (up to the sum insured) where liability has arisen from an alleged or wrongful act, omission, or breach of duty (fraudulent acts are not insured under this section).

Audit Costs/OHS Breaches

Covers professional costs in connection with the ATO and the Office of Business and Consumer Affairs as well as the legal expenses incurred in appealing against an improvement or prohibition notice brought under any workplace, occupational health, safety, or similar legislation.

Voluntary Workers

This insures voluntary workers against bodily injury, inability to work, or death as a result of an accident which occurs while they are undertaking voluntary work for the strata company.

Fidelity Guarantee Protection

An additional sum can become available to assist in the escalating costs of the claim. The limit of insurance covers up to either 15% or 30% of the Building Sum Insured value.

Machinery Breakdown

Provides protection against unforeseen physical destruction/damage to electrical, electronic and mechanical machinery and plant – also includes lifts, elevators and escalators.

Lot Owners Improvements

This coverage is for fixtures and structural improvements installed or upgraded by Lot Owners for their exclusive use.

Catastrophe Following a Catastrophic Event (e.g earthquake, bush fire, tsunami, or cyclone)

An additional sum can become available to assist in the escalating costs of the claim. The limit of insurance for this cover is usually either 15% or 30% of the building Sum Insured value.

Workers Compensation

Indemnifies the Body Corporate for legal liability to their employees under workers compensation legislation. A good example of this being relevant: if a tradesman has an accident on a complex with no WC cover, the liability could fall back on the Strata.

Contents Coverage

At KBI we have leveraged our networks, strong relationships and our depth of knowledge of the Strata space to customise insurance solutions for Property Owners, Developers and Property Managers. As experts in this area of insurance, we work closely with our clients to understand their unique needs. We approach insurance companies on your behalf to obtain multiple strata insurance quotes, with a range of coverage and pricing options. Next, we compare these options and present our recommendations and relevant Product Disclosure Statement (PDS) to you. Finally, we secure the insurance that you select and review it with you annually.