Residential strata insurance, also known as the body corporate insurance, covers all the common property areas that fall under the strata title or a corporate body entity.
When you own a property that shares common property, things can be a bit tricky or complicated when something happens on that commonplace.
For that, you need to have complete assurance that a residential strata insurance covers the place to get a strong backup to deal with unforeseen happenings. Here’s why it’s worth having a residential strata insurance:
To get the proper coverage for your building:
If you are living in a residential apartment, then you share a lot of commonplaces with your other neighbors or resident members. In that case, if anything happens to your common property, the liability issue over the place can get more complicated.
That’s what a residential strata insurance strives to resolve. This section of your residential strata policy offers complete coverage for any kind of damage or destruction or a physical loss due to any adverse circumstance that falls under the policy. The coverages for the category include the following:
- Any kind of accidental damages happened on the commonplace, which can cause the loss or damage of the property.
- Another common area related problem like a temporary accommodation supply service failure, the spreading out of infectious or contagious diseases, and loss of the receivable rents. It also includes a murder or suicide that happened in the place, reletting costs, etc.
- Damages caused by natural calamities like a storm or flood.
- Loss of the keys of the commonplace.
- Breaking any glass that falls within your liabilities in your commonplace.
- Theft or loss of any properties that fall under the insured list of the commonplace.
- Open-air common contents.
- Vehicle-related damages in the parking lot.
- Damages done to the common property due to a renovation in your place.
For better understanding, you can consult with the Fundamental insurance brokers – Residential strata to get a detailed knowledge of the insurance policies and coverings.
Compensation for the property owner’s legal liability:
The residential strata insurance provides compensation for the legal liability of the owner’s share in the common property. It covers the compensation in case of injuries or property damage of the third party.
Therefore, the legal costs also get covered in case of the limit of the liability.
For the underground of the overhead services, bridges, footpaths, roads, or anything that falls in the commonplace insurance category, the insurance company compensates for all the damages that you pay for.
Catastrophe coverage:
For any kind of loss or damage to the property, you have insured it can get affected through any kind of catastrophe. If anything happens during the period of insurance, the company pays an amount or percentage mentioned in the policy.
If the destruction or the damage caused by this is bigger in the amount incurred by the Lot owner, then the cost of evacuation should be paid by the insurance cover so that you can stay worry-free for the catastrophic happenings.
Damage coverage for emergency services:
Emergency services like an ambulance or a fire brigade can cause damage to the property that falls within the share of yours.
The damages caused by the lawfully-constituted emergency services that happen in the course of their duty falls within the liability of the commonplace ownership.
In such cases, if it takes place in the time within the period of insurance, the insurance company will pay for the reinstatement of the loss that happened in your property.
Loss prevention expenses:
Residential strata insurance also pays for the prevention of the loss to keep you protected from extra costs caused by the massive damages.
The costs and the expenses for any fire breakout in your place that can harm your employees or any kind of probable vicinity in the place that can damage your property needs to be protected.
The cost of installing fire extinguishing equipment at your place gets coverage through the insurance policy. Similarly, any kind of activity that disrupts the normalcy in the third party area or common area, like shutting off the water supply, can fall under the chargeable act.
Therefore, the liabilities for any fire-causing act, like the accidental discharge of provocative fire equipment, will get complete compensation coverage by the insurance to give you proper backup.
Fixture and improvement coverage for the lot owners:
If the building or the insured property faces any kind of damages or needs to be renovated, a strata insurance company will pay for you. In such matters, the strata insurance company remains liable to pay for the cost if you have agreed to let them cover for you.
For any kind of renovation or fixtures, the strata insurance falls very effectively to support you from paying a whopping amount of money.
Additional benefit covering:
In return for the extra payment for the premium coverages, the residential strata insurance offers more coverages for the common property liabilities. For the removal, disposal, or cleaning of the debris that falls within the insured property of the commonplace gets additional compensation for bearing the cost by the insurance companies.
Moreover, services like the rewriting of records that are lost or damaged due to any event are paid by the insurance company.
Other coverages like funeral expenses, water removal from the basement area, removal of trees from the garden, discharge of mortgage, meeting room hire, arson reward, etc. fall within the coverage.
Owners of the strata units share the liabilities of any loss or accident that happened on common property. In this case, they also share the liability to bear the cost of the fees and premiums of the insurance.
It’s always a smart idea to opt and pay for the residential strata insurance to get a strong backup to fight with any adverse situation. You can also decide to share the premium charge with your neighbor or any other owner for having a better settlement for the insurance policy, to always stay protected and covered from additional expenses.
