If you own a home within an apartment complex, townhouse development or other strata titled property, then you’ll be aware that you need to pay regular body corporate fees. These fees include your share of an annual body corporate insurance policy.
Body corporate insurance, also known as strata insurance or homeowner’s association insurance, is a type of insurance that covers the common areas and amenities of a multi-unit residential complex or community.
It is typically required for buildings that have a body corporate, which is an organisation responsible for managing the shared areas and common facilities of a multi-unit residential complex.
Body corporate insurance typically covers the following:
- Building structure: This includes the physical structure of the building, such as the walls, roof, floors, and foundations. It also covers any permanent fixtures or fittings, such as lifts, stairs, and swimming pools.
- Common areas: This includes areas that are shared by all residents of the complex, such as lobbies, corridors, elevators, and recreational facilities.
- Liability: This covers the body corporate against claims made by third parties for injury or damage that occurs on the property. It may also cover legal costs associated with defending such claims.
- Fixtures and fittings: This covers any fixtures and fittings that are owned by the body corporate and located in the common areas, such as lighting, security cameras, and furniture.
- Loss of rent: If the complex is damaged and becomes uninhabitable, this coverage can help to compensate the body corporate for lost rental income.
- Contents: This covers any contents owned by the body corporate and located in the common areas, such as office equipment, tools, and cleaning supplies.
- Glass: This covers any damage to glass in the common areas, such as windows, mirrors, and shower screens.
- Alternative accommodation: If the complex is damaged and residents need to find temporary accommodation, this coverage can help to cover the costs.
- Professional fees: This covers the costs of hiring professionals, such as architects, engineers, and legal advisers, to help with the repair or rebuilding of the complex.
It is important to remember that body corporate insurance does not cover the contents or building structure of individual units within the complex. If you’re a homeowner, you’ll need your own insurance for this. Landlords would also be wise to take out a landlord insurance policy.
In addition to the standard coverages listed above, some body corporate insurance policies may also offer additional options, such as coverage for natural disasters, terrorism, or cyber-attacks.
If you would like to know this detail, your body corporate manager should be able to give you a copy of the policy so you can understand what is and is not covered.
Overall, body corporate insurance is an important form of protection for multi-unit residential complexes. It helps to ensure that the common areas and amenities are properly maintained and protected.
It is typically required by law and helps to ensure that the body corporate has the financial resources to repair or rebuild the complex in the event of damage or loss.
Get in contact with your Capitol body corporate manager to discuss any aspect of body corporate insurance here: https://www.capitolbca.com.au/contact-us/