Insurance – Building Vs Content
Insurance (Building vs Contents)
There is often confusion between what is classified as building and what counts as contents when it comes to claiming for items inside a Strata Titled property.
This is one of the most asked inquiries we receive as Building Managers from new Owners moving into ALT and Sienna Apartments.
Most people would agree it’s smart to be insured in the event that your home or belongings are damaged or destroyed. But did you know that building insurance for strata properties can differ to that offered for non-strata homes? Owners of ALT & Sienna Apartments share the premium costs of the strata insurance as part of their levies and liabilities. Strata insurance is also mandatory requirement to conform to each state’s relevant legislation.
What does Strata Insurance Cover?
Strata Insurance generally covers only the building common or shared property as defined on the title in the event of loss or damage. They usually include fixtures and fittings on the common areas, gardens, lifts, car parks, walls, ceilings and floors etc. Other common property that you might find is covered under strata insurance may include some of the fixed parts of your apartment.
It is important to note that Strata Insurance does not cover contents and personal items of the resident within the apartment, including the carpet. In the event of a flood or fire your contents will not be covered by the building’s insurance.
What does Contents Insurance Cover?
As ALT and Sienna Apartments is a strata building, contents cover does not form part of your Strata Insurance hence it is generally good practice to take out an independent policy to cover your personal contents and items.
Contents Insurance provides a level of protection against damage, theft or loss of personal possession within your apartment. This may include items such as:
- TV & Computers
- White goods
Contents insurance is suitable for Owner Occupiers residing at the Property to protect them against damage, theft or loss. Investors should seek Landlords Insurance for protection of the property caused by their Tenants, i.e. loss of rent, malicious damage etc.
If you own a strata property (ALT & Sienna Apartments) you should read the policy carefully so that you understand what is not covered in your apartment. Before proceeding with an Insurance Cover, it is important to contact the Owners Corporation to ensure you have the appropriate contents cover for your belongings as the Strata Insurance policy may have some exclusions or exemptions within the policy.