The Importance of Contents Insurance for Lot Owners

Published: 07/06/2022

The Importance of Contents Insurance for Lot Owners

Are you a Strata Lot Owner? It is important to be aware that most contents and fittings within your Lot are not covered under your Strata Insurance policy should something happen.

To insure these items, you may need to consider taking out a contents and/or Landlords Insurance policy.

It is a common misconception by Strata Lot Owners, that should damage to their lot be caused by a claimable event under their residential strata insurance policy, that any damages to the contents and fittings within their own lot will be covered under that claim.

This unfortunately is not the case. Residential Strata Insurance will only provide cover for a very specific set of items within an owners lot, as the insurance is designed and priced to cover the main building and common areas.

For example, if a storm causes a roof leak in the building and the leaking water also damages light fittings and carpets in an owners lot - these damages can not typically be claimed through Strata Building Insurance.

What can be covered under each type of insurance?

While not every policy is the same, the table below outlines what is typically covered under a Strata, Contents or Landlords Insurance policy.


Item, covered by: StrataContentsLandlords Insurance

Furnishings and Furniture

No

Yes

No

Building

Yes

No

No

Common Property

Yes

No

No

Common Property Public Liability

Yes

No

No

Liability within your apartment

No

Yes

Yes

Clothes and Personal Items

No

Yes

No

Carpets

No

Yes

No

Paint on walls and ceilings

Sometimes - please check

Yes

No

Floating Floorboards

Sometimes - please check

Yes

No

Wallpaper

Sometimes - please check

Yes

No

Curtains and Blinds

No

Yes

No

Light Fittings

No

Yes

No

Kitchen benches and Appliances

Yes

Yes

No

Bathroom Cabinets

Yes

Yes

No

Water damaged lights and light fittings

No

Yes

No

Ceiling fans

Yes

Yes

No

Tenant malicious damage

Sometimes - please check

No

Yes

Loss of rent

For owners in an insured event

No

Yes

Eviction costs

No

No

Yes


All too often Lot owners are left disappointed with the lack of contents cover provided within their Strata Insurance policy. Unfortunately, once it comes time to make a claim, there is nothing that can be done for the owner without adequate insurance in place.

That's why it is important that Strata Lot Owners understand the limitations of their residential Strata Insurance policy and consider Contents Insurance and Landlords Insurance if applicable to help prevent undue loss after an incident.


How Coverforce can help

Our strata insurance specialists handle a large number of strata claims each year. We can help Lot Owners understand the limitations of their residential strata policy and what other options are available to help prevent undue loss.

For more information or to arrange cover, get in touch with your local Coverforce Office today.


The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly



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