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  • Writer's pictureCarrie McInerney

Why you need Body Corporate Insurance

Updated: Oct 21, 2022

Beyond a legal requirement, having adequate Body Corporate insurance could be the difference between creating a liability for owners and ensuring a secure investment.

South Australian apartment flat townhouse

All unit owners in a strata development make up the body corporate. The body corporate is liable for a number of administration, financial and organisational matters relating to the common property and the unit title development as a whole.

Body Corporate insurance, also known as residential strata insurance, covers the common contents and property under the management of a strata title or body corporate entity.

Owners of units within the strata usually share the premium costs of Body Corporate insurance - it's built into the regular strata fees and liabilities.

Section 30 of the Strata Titles Act means Body Corporate insurance is mandatory and must include public liability covering people injured on common property.

Why do we need Body Corporate Insurance?

By law, Strata Corporations must have an insurance policy covering all building and building improvements for their full replacement value. The policy must also include all costs incidental to and associated with any replacement. Corporations are further required to keep themselves insured against liability for negligence.

What does Body Corporate insurance cover?

Body Corporate insurance typically covers a building or group of buildings within the strata scheme, the common property, and contents as described in the title for the strata property.

Common property can cover anything from gardens and garden equipment, wiring, lifts, swimming pools, and car parks to walls, windows, ceilings, and floors. In this way, Body Corporate insurance policies often have to cover things that the average home policy does not.

Body Corporate insurance may also cover some of the fixed parts of your unit, such as ducted air conditioning, but because it won't cover everything, you should make sure you understand what is and isn't covered in your unit.

What doesn't Body Corporate insurance cover?

What is and isn't covered will vary from policy to policy, strata group to strata group, but typically a policy will list specific exclusions. Typical exclusions might include coverage against landslip or flood damage or for the property's fencing. Make sure you understand the exclusions of your Body Corporate Insurance agreement before signing on the dotted line.

Tip: Body Corporate Insurance doesn't cover the contents and personal items of unit holders or residents - make sure you have individual insurance for this.

How Horner Management can help

Horner Management services include our obligation to arrange and pay for your Body Corporate insurance following your instructions. Our managers can give you information, general advice regarding insurance policies and answer your questions to ensure you have the best policy for your group.

In addition to our management services, Horner Management is an Authorised Representative of CHU Underwriting Agencies. We are also Authorised distributors for SUU Insurance and Strata Community Insurance.*

This arrangement means that we liaise with Insurers directly. We promptly lodge claims on your Corporation's behalf, contact your insurer regarding existing claims, and seek advice from them when our clients have queries.

Is your strata building adequately insured?

More than just having Body Corporate insurance in place, it's also essential to make sure that insurance is up to the task. If your insurance policy does not cover your needs, it could leave owners in a vulnerable position; having a level of cover that properly covers the costs to repair and rebuild matters.

To find an insurance policy that meets your strata group's requirements, contact us to see how we can help.

*CHU Authorised Representative No. 269526. Horner Management may receive a commission for placing your insurance.

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