The difference between Home and Strata Insurance
A number of insurance brokers have contacted me of late concerned that unit holders and body corporates are obtaining quotations from comparator sites and some new entrant direct insurers on their body corporate or their individual unit.
This of course is a nightmare situation as the cover afforded under a home building policy is totally different from a residential strata complex.
Issues such as common areas, liability coverage and a raft of others are specifically addressed by a strata insurance policy and provide much better coverage tailored to this form of accommodation.
I know of a number of complaints that have been lodged with ASIC on this issue, however it still remains unresolved. In the meantime, my strong advice is to only insure residential body corporate units under a residential strata policy.
If you are on the management committee you may well find yourself personally liable if the insurance does not adequately cover all the unit holders, not only for your own unit but the others where the unit holders have entrusted you to get it right!
Not all Directors and Officers Insurance coverage provides protection for inappropriate or inadequate insurance. Think of the personal risk to you not some perceived and possibly illusory saving in premium.