Do I need insurance if my property is managed by strata?

If you own or rent an apartment, townhouse, unit or any other dwelling in a residential complex, you may be unsure what's protected by your strata's insurance and what you need on top of this.

While some areas of your complex and dwelling are already insured by your strata, it pays to ensure that valuables in your home are covered.

What is strata insurance?

Strata insurance covers shared or common property in a strata-managed complex, owners' corporation or body corporate-managed complex. 

Generally this covers external areas such as balconies, common-area gardens and barbeques, pools and tennis courts, intercoms and garages. It could also include cover for anyone working onsite on behalf of strata.

The payment of strata insurance premiums are shared between owners of property titles and they're usually included as part of strata fees and levies. 

It's worth noting that strata laws and strata insurance differ state by state. For example, in NSW strata won't cover paint and wall paper, while in Queensland strata doesn't cover air conditioning units.  So it's a good idea to do some research to understand what you're covered for under your state's legislation.

What does strata insurance cover?

Here's what you can expect strata insurance to cover:

• building fixtures such as pipes, hot-water systems, intercoms and air-conditioners
• common property including gardens, lobbies, car parks, pools and stairwells
• common contents such as shared outdoor furniture and gym equipment
• public liability insurance that covers common property.

What strata insurance doesn't cover

Strata insurance doesn't cover belongings inside your property or anything that is not permanently attached to the building. Generally speaking, items that aren't covered by strata insurance include internal fittings and fixtures, lights, carpets, floorboards, furniture, electrical items, jewellery and other personal belongings. 

If you're renting out your property it's worth keeping in mind that strata insurance doesn't cover theft or interior damage by tenants, legal fees resulting from taking action against tenants, or loss of rent if a tenant doesn't pay. 

If you want to insure your belongings against loss, theft or damage or protect yourself from potential issues with your tenants, you can take out contents insurance or landlord insurance.

What is contents insurance?

Contents insurance is designed to financially protect your personal belongings from loss or damage from defined events such as flood, fire, theft and accidental breakage (if you have chosen accidental damage as an optional benefit). It can be taken out by an owner-occupier to cover personal items and certain household fittings such as expensive taps or light fixtures. Renters' personal belongings can be covered by this type of insurance also.

To learn more about home and contents insurance make sure to check out our answers to frequently asked questions.

What does contents insurance cover?

Most household items that aren't permanently fixed to the building will be covered by contents insurance including furniture, carpets, floating floor boards, blinds or curtains, electronics and appliances, clothing, jewellery, and other personal possessions.

If you have particularly valuable items such as engagement or wedding rings, mobile phones, family heirlooms, artwork, TVs or laptop and any other costly items are generally also covered under content insurance.  For ANZ Contents insurance or Home and Contents insurance the maximum payout is $3000 per item for valuables, so if you have individual items worth more than this you may want to consider topping up your cover by specifying the item and the value you wish to insure the item at.

In addition, you can take out portable-contents insurance to guarantee that important items are covered while using them away from the home. At ANZ, you can individually cover high value items up to a maximum value of $40,000. This way you'll be offered peace of mind knowing your treasured possessions are completely covered for what they're worth.

If you're curious about how you can best protect your belongings you can read our tips for getting more from your home insurance.

The benefits of contents insurance for strata property

Whether you're a homeowner or renter there are plenty of benefits to taking out contents insurance to protect your valuables from loss due to unexpected accidents, damage or theft. So it pays to be prepared by sufficiently protecting yourself from the sudden costs of replacing or repairing items.

ANZ Contents Insurance provides several advantages including:

• new-for-old replacement regardless of the item's age^disclaimer
• cover for natural disasters including flood and bushfire^disclaimer
• cover for electrical motor burnout and power surge^disclaimer
• cover for contents away from home and anywhere in the world^disclaimer

What's the difference between contents insurance and strata insurance?

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To read more about the different types of insurance available and to ensure you're sufficiently covered against loss, damage or theft, make sure to check out our home insurance learning centre.