15th September 2017 COMPULSORY INSURANCE in Strata Managed Schemes
Did you know, OWNERS need to BUY insurance for the HOME CONTENT insurance? Most do not, even I did not, I thought paying the quarterly strata levy will include all the insurance needs for my apartment, it does NOT.
This means, if the building burned or flooded, your content is NOT covered! As investor, MAKE SURE YOU buy your insurance for the content. Wait, but is that not the TENANT’S RESPONSIBILITY?
Yes, tenant’s are responsible for their CONTENTS but NOT YOURS as landlords!
Strata Scheme Management Act 2015 states only these are COMPULSORY by the Owners Corporate (formerlly “body corporate”) Section 160 Division 1:
1. Building insurance on building and common properties; 2. Voluntary Workers Compensation; 3. Public Liability; Leading Committee Insurance; 4. Leading Committee Insurance (most takes this, some do not, taken to protect the owners);
Building insurance is different from Home Content insurance. Make sure you have the home content insurance to protect your content, it is NOT convered in the strata scheme compulsory insurance.
What content? The kitchen cabinets, the laundary white goods, the painting inside the apartment, the tiles in the toilet and bathroom, the kitchen, the stove, oven, dish washing maching, microwave oven, carpet. These are NOT covered, so please take care can conver yourself from potential lost in your investment properties.
Stephen Licence Real Estate Agent (LREA), Stock and Station Agent, Auctioneer Oracodes Realty Pty Ltd
Licence Real Estate Agent in NSW. Background in Life coaching, Therapy, Energy Healing, Meditation Facilitator, Construction knowledge in Building, Road, Theme park, Writer, Accountant, Property Investor