Strata insurance premiums vary, depending on the level of risk exposure of the area where the building is located
According to the Insurance Council of Australia, many strata schemes pay around a third of the premiums of an equivalent stand-alone home policy
The number of apartments in Australia is increasing - with a 30.6% rise in apartment approvals predicted in November 2017
In general, strata insurance costs the same or less for each unit owner than the premium paid by the owner of a stand-alone residence or building in the same area.
Each strata insurer develops and offers a unique commercial product in accordance with its underwriting appetite. Some common factors contributing to the premium include:
Mandatory requirements of state-based law
Government taxes on insurance (stamp duty duty and GST)
The age and condition of the building
The replacement cost of the building
The risk profile of the location
The claims history of the strata complex
The vulnerability of the insured property to an insured event (age, building codes, building design and materials)
Commercial activities carried out on the premises, such as holiday letting Fee and commissions from agents
The level of excess payment selected by the body corporate, payable at the time of a claim
Fee and commissions from agents
The costs of common property, for example car parks, stairwells, fire protection systems, lifts and pools
Your Buildings and Common Contents are covered for accidental damage, physical loss or destruction of property by any cause not otherwise excluded in the PDS and policy wording.
Your Property is provided cover for Breakage of internal or external Glass. This insurance is extended to include the additional benefits of building & common contents.
You are provided cover for Loss or Damage to Your Insured Property occurring as a result of theft or attempted theft. Additional Benefits include those of buildings & common contents, as well as Loss of Keys.
You are provided cover for Legal Expenses you incur in appealing against any imposition of an improvement or prohibition notice or determination made under any Workplace, Occupational Health and Safety or similar legislation. This section of the policy is extended to also include Continuous Cover.
You are provided cover for loss that is incurred as a result of fraudulent Misappropriation of funds. Addition
Committee members are provided cover for Loss arising from a Wrongful Act which results in a Claim.
Government Audit Costs include the reasonable and necessary Audit costs incurred due to an investigation of your financial affairs by a Government body.
The Owners Corporation/Body Corporate is provided cover for their legal liability following an event that causes Personal Injury or Property Damage.
Legal Expenses provides cover for costs you are liable to pay following legal proceedings brought against you. Legal Expenses is extended to also include Continuous Cover and Appeal Proceedings.
You are provided cover against sudden and unforseen physical destruction or physical damage to Machinery that requires repair or replacement to enable normal working of the Machinery to continue. This section of the policy provides Additional Benefits for Hire of Temporary Machinery, Expediting Costs and cover for Additional Machinery.
Voluntary Workers cover provides monetary benefits in accordance with the Schedule of Benefits of your policy in the event that a Voluntary Worker is injured or dies as a result of an accident while carrying out that voluntary work.
