Have you ever stopped to consider exactly what's covered by your strata insurance?
At Midland Insurance, we often see confusion around strata insurance, and it’s understandable why. When you're living in or managing strata-titled properties, knowing exactly what's covered—and what's not—can save you from unnecessary stress and unexpected costs.
Understanding strata insurance coverage
Strata insurance typically covers common areas within your property—like stairwells, lifts, pools, driveways, and gardens. But it doesn't stop there. It also covers structural elements like roofs, walls, windows, and floors. Put simply, if it's fixed in place and shared, your strata policy probably covers it.
However, strata insurance often goes beyond property alone. Most policies include public liability coverage, protecting your strata from financial risks if someone is injured in a common area. If you're unsure about the extent of your current coverage, consider something more comprehensive like public and product liability insurance.
Did you Know According to the NSW Government, strata insurance is mandatory, meaning every strata scheme must have appropriate coverage for the building and common property, including public liability.
But what about your personal belongings?
This question comes up all the time. Here's the short answer: strata insurance does not cover personal belongings inside individual units. Whether you're the owner or a tenant, your furniture, electronics, appliances, and valuables require separate insurance coverage. A policy like contents insurance or even personal asset insurance can provide crucial protection.
The importance of understanding your exclusions
We've seen property owners learn the hard way that strata insurance won't cover every scenario. A common misunderstanding involves fittings and fixtures. In many cases, these aren't covered if they're deemed personal contents rather than permanent fixtures.
For instance, if you're undertaking property renovations or fit-outs in common areas, specialised coverage lik e interior fit-out insurance becomes particularly important to bridge those gaps.
Strata insurance generally won't cover building defects caused by poor construction. Owners may face substantial repair costs if defects are discovered after insurance claims are rejected.
Situations like Sydney’s Opal Tower are reminders of why knowing exactly what's excluded from your policy is essential. You can read about the Opal Tower's issues in detail in this article on News.com.au.
When additional coverage makes sense
Sometimes, standard strata insurance isn't enough. If your property has specialty upgrades, expensive appliances, or commercial equipment, you'll likely need extra protection. For example, industries with unique risks—such as wineries and vineyards or photography studios—often benefit from tailored insurance solutions that standard strata coverage won't provide.
Why accurate building valuations matter
Underinsurance is a real problem, and we've encountered it often. If your strata property is undervalued, even a minor disaster could lead to significant financial burdens. Regular reviews of your policy limits are essential, and professional advice can ensure accurate coverage.
If you're unsure about your building valuation, you can contact our strata insurance team for guidance. We're always ready to help you stay protected.
Efficiently managing insurance claims
Strata committees handle claims collectively. Being proactive about maintenance and quickly addressing problems ensures smoother claims processing. Clear communication and immediate documentation of incidents like burst pipes or storm damage are essential to avoid delays.
Did you Know Timely reporting of strata insurance claims significantly speeds up the process. The sooner you report and document the damage, the easier it becomes for insurers to assess your claim efficiently.
Keep informed and avoid surprises
Insurance isn't something you should set and forget. Regular policy reviews and open communication with your strata committee help ensure that everyone clearly understands what's covered. Resources like this NSW Government guide and detailed
