Request for common property certificate of currency

Why does my property need common property insurance cover

It’s mandatory in Australia to have insurance that conforms to your state’s strata legislation. Common property insurance protects aspects of a property that the average home insurance policy doesn’t. Whether your property is your investment or your home, the financial impact of losing your property could be devastating. Common property insurance insures your property financially against accidents, loss, damage, and many types of natural disasters.

If a guest, resident, or contractor sustains an injury on your property the owners of the property are financially responsible for any resulting legal action. That is why most common property insurance policies also cover public liability (e.g. death or injury to a person on strata common property), office bearer’s liability, and personal accident/volunteer worker cover.

If you are looking for a way to protect your property against legal action relating to personal property damage or personal injury your property may benefit from Community Health & Safety.

What does my common property insurance cover?

Common property insurance protects the building and common property, not your personal property. Common property insurance ensures you are protected for accidents, loss, damage, and many types of natural disasters.

Generally common property insurance covers:

• Public liability insurance for common property areas
• Common contents such as communal furniture, equipment, and appliances
• Reinstatement and replacement insurance for buildings on common property
• Strata insurance doesn’t cover any personal contents in individual units or lots
• Common property such as common areas, car parks, stairwells, lifts, gardens, and common floors, walls, and ceilings
• Voluntary workers insurance to cover people carrying out voluntary works on behalf of the owners corporation
• Fixtures and fittings that cover common areas of the building such as ducted air conditioning, balconies, water pipes, and sewage pipes

An insurance policy may have exclusions, so it is important to check the inclusions and coverage level of your policy.

Do I need both common property and contents insurance?

There is a common misconception in Australia that having common property insurance, which is compulsory, protects owners from things that happen on the other side of the door. In fact, common property insurance only covers issues like theft, storm damage and legal liability, within the common areas.

This means as a landlord and owner, the belongings within your property aren’t covered. Much like you’re not covered should your tenants default on rent, depart, or damage your property.