Strata Insurance Western Australia – Explained
WA legislation (the Strata Titles Act 1985 (WA) and other legislation) requires businesses and property owners’ councils to carry certain minimum levels of insurance.
Residential and Commercial Strata Insurance automatically includes the following insurance:
Insured Property – Includes the cost of damage and repairs to Buildings (For Example, driveways, stairways, fire escapes, plumbing and electrical equipment, roof-top gardens, pools etc that aren’t part of the individual properties. It also covers Common Areas on your property (For Example, washing machines in a common laundry room, Gym Equipment etc) that are shared.
Liability to others – This is covered by your insurance policy’s involuntary liability coverage.
If someone is injured on common property, your body corporate can be held liable for negligence and ordered to pay damages.
A Strata Insurance Policy also has other covers with are either in-built into the policy, or can be added as “optional extras” such as:
Voluntary Workers – for voluntary workers in the event the voluntary worker sustains bodily injury whilst voluntarily engaged in work on your behalf
Workers Compensation – Most strata insurers now no longer offer Workers Compensation on their policies but it can be purchased at an extra cost as separate policy. It is highly recommended that all Strata Policies take out a worker’s compensation policy in addition to their strata insurance.
Fidelity Guarantee – If a company suffers financial loss due to theft or fraudulent misappropriation of funds by a member of the strata committee.
Office Bearers’ Legal Liability – If you are a strata manager, or are currently performing the duties of an executive, executive insurance is important protection. This indemnification is intended to protect members of owners’ corporation boards from losses arising from alleged illegal acts committed in the performance of the board’s duties. In an increasingly litigious society, all boards of proprietary companies must be adequately compensated for this type of risk exposure.
Public Liability – Helps cover legal costs and protect the Owners Corporation if an unpleasant incident occurs on common property that causes personal injury or property damage.
Machinery Breakdown – Machinery breakdown insurance protects against unexpected damage to machinery owned by a strata company. Repairing Machines can prove pricey and repair delays are inevitable. Common machines to consider: Pool and Spa Motors, Air Conditioners, Elevators/ Lifts, Automatic Gates.
Catastrophe Insurance – This often “snubbed” option comes into play when a major disaster occurs, such as a hurricane or wildfire, and you face rising costs to repair your property due to soaring demand on builders and contractors.
Government Audit Costs and Legal Expenses – Covers protection in the event of a state audit, protection if the owners’ association must appeal an unreasonable order of a statutory authority, and legal defense costs.
Lot Owner Fixtures and Improvements – It is important to note that fixtures within units are automatically included in the main building section of the policy. However, when the sum insured of the main building cover is fully exhausted, THIS SECTION will provide extra cover for fixtures within units.
Need help? We can assist you, please contact us at sslipper@avoca.com.au for all your Strata enquiries, demands, probes and doubts.
