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Strata and non-strata homes are insured differently. What are the differences?

In Finance
July 07, 2022
Strata and non-strata homes are insured differently. What are the differences

For a homeowner who resides in a strata, there are significant differences in coverage between homes in a strata and homes in a non-strata structure. Take a look at our quick and easy guide for more information.

There is no doubt that having commercial strata insurance coverage is worthwhile in the event that your belongings or home are damaged or destroyed. In spite of this, did you know that cover for strata title properties can differ from that offered on non-strata title properties, which come under a different set of rules?

Throughout this simple and straightforward guide, we will be highlighting some of the key differences between the two. A strata law and strata insurance policy vary from one state to another, and insurance coverage varies from one provider to another. It is therefore important to verify the coverage under your insurance policy.

Strata insurance versus building insurance

An individual building insurance policy will typically cover a residential property, as well as permanent structures such as a house garage or granny flat that is permanently attached to the house.

A strata titled property is often accompanied by a body corporate that is directly responsible for any residential strata insurance required by the law for strata titled properties. Building strata title generally refers to a set of agreements between a building developer and its strata owners which entail management of the building and common areas.

A strata policy typically covers common areas such as gardens, lifts, walls, windows, pools, ceilings, and floors. It also usually includes liability coverage in case third parties are injured on common property. There will be differences between states in strata laws and strata insurance, so you should check what is covered by your strata policy.

Strata insurance vs. contents insurance

Contents cover is offered for both non-strata titled dwellings as well as strata-titled dwellings, which covers the contents of both dwellings under the same policy. In most cases, personal belongings like clothes and furniture are covered by the contents insurance policy.

Strata insurance does not cover all areas of residential contents insurance, so you may also need to consider them in your residential contents insurance policy.

It is important to note that certain items may not be covered under your strata insurance, such as additions to your own fixtures and fittings, such as replacing the kitchen, bathroom, or built-in wardrobes as an example. Check with your strata management to make sure you know what your cover is and what you may be entitled to as a tenant. Your residential insurer may be able to offer you coverage for these special items if you have gaps in your contents insurance policy. It may be a good idea to discuss the possibilities with them.

You should disclose any renovations you make to your non-strata titled home that increase the value of the property, such as a new extension or loft conversion, to your insurer. There are a number of factors that could increase the value of your home and the cost of rebuilding it, which is why you may need to increase your building insurance to ensure that you are covered.

As strata laws, strata insurance policies, and insurance covers vary from state to state, you should check what is covered under your policy.