The Importance of Contents Insurance for Lot Owners

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:	Strata	Contents	Landlords 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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