#29183
Jimmy-T
Keymaster


    @Austman
    said:
    Actually, compulsory strata building insurance usually covers all the building(s). That’s common property building structures but also private lot property building structures.  It also often covers lot fixtures and improvements.  Sometimes it’s legislated that way (eg NSW, VIC, ACT) but with all my OC’s policies (they are all CHU) it’s actually written that way or in the case of lot fixtures and improvements, offered as an optional policy. CHU’s residential strata policy does however only cover common contents.

    I don’t dispute any of the above but think we have to be very careful here that we aren’t giving the wrong impression so that people think they are covered by insurance when in fact they aren’t.

    Compulsory strata insurance “covers all the buildings” means, basically,  common property and all thatentails.

    ‘… often covers lot fixtures and improvements” means what? Kitchen cupboards? An internal shelf on a wall? An approved extension?  An unapproved extension? Either way, the word “often” should have readers looking at their policies to see what actually is covered.

    The fact that lot fixtures and improvements coverage is offered as an add-on suggests that in some policies they aren’t there to begin with. Again, owners should check their policies.

    I’m only saying this because too often I’ve come across lot owners who saw the premiums come up every year as part of their strata scheme’s budget and thought they were fully insured – and discovered they weren’t when things went terribly wrong.

    If anyone is interested, this is the current CHU residential strata policy.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.