Insurance ‘Game Changer’ to Reduce Premiums For Your Strata Property

In Queensland, as in other parts of Australia, strata properties have specific insurance requirements that bother owners and residents must adhere to. In this article, we will delve into the intricacies of insurance compliance in strata properties in Queensland, helping you understand your obligations, rights and services available.

Understanding Strata Properties

Before we dive into insurance compliance, let’s clarify what strata properties are. Strata properties, also known as community titles or body corporate schemes, are multi-unit developments where individual owners have exclusive ownership rights over their individual units or lots. Common areas and facilities, such as lobbies, swimming pools, and gardens are collectively owned and maintained by all owners through a body corporate.

Why do I need an Insurance Valuation?

  1. Inflation
  2. Availability of labour
  3. Building costs
  4. Quality of finish
  5. Shared facilities
  6. Legally compliant
  7. Peace of mind

Insurance requirements in Queensland

Queensland has specific laws and regulation that govern insurance for strata properties. The Body Corporate and Community Management Act 1998 (BCMM Act) is primarily legislation that outlines these requirements. Here are the key insurance-related aspects that strata property owners and residents should be aware of:

  1. Mandatory Insurance: Under the BCCM Act, it is mandatory for a body corporate to have insurance coverage for the building, common property, and public liability. This insurance is collectively funded by all owners through their contributions to the body corporate.
  2. Replacement Value: The insurance coverage must be based on the replacement value of the building and common property. This means that the insurance should be sufficient to cover the cost of rebuilding the property to its original condition in the event of a disaster.
  3. Public Liability Insurance: Strata properties must also have public liability insurance to cover any injuries or damage that may occur on the common property. This is crucial to protect the body corporate from legal liabilities.
  4. Duty to Insure: The body corporate committee is responsible for ensuring that the property in adequately insured. They must regularly review the insurance policy to make sure it meets the required standards.
  5. Access to insurance information: Owners and residents have the right to access information about the insurance policies, including policy documents, premium details, and claims history. This transparency is essential for ensuring that everyone is aware of the property’s insurance coverage.
  6. Voluntary Additional Insurance: While the BCCM Act mandates certain insurance coverage, owners can also choose to take out additional insurance for their individual lots or units.

Why Insurance Compliance Matters?

Insurance compliance in strata properties is crucial for several reasons:

  1. Protection: Adequate insurance coverage protects both the individual owners and the collective body corporate from financial losses in the event of accidents, natural disasters, or other unforeseen events.
  2. Legal obligation: Failing to comply with insurance requirements can lead to legal consequences, including fines and liabilities. It’s essential for owners and committees to understand and fulfill their legal obligations.
  3. Peace of Mind: Knowing that the property is properly insured provides peace of mind to all residents, as they can trust that their investments and assets are safeguarded.

Insurance compliance is a fundamental aspect of strata living in Queensland. It ensures that the property and its residents are adequately protected in the face of unexpected events. Owners and resident should be proactive in understanding their insurance obligations, staying informed about the property’s insurance coverage, and working together to maintain a safe and secure living environment in their strata property. By doing so, they can enjoy the benefits of strata living with confidence and peace of mind.

For more information on insurance compliance and services to get you compliant check out Strata Umbrella’s website: