These are just a couple of the many events that can impact you and your personal possessions. It’s vital you ensure you are protected by your strata contents insurance.
SCENARIO ONE: A plumber working on your apartment trips on a rug, badly damaging his knee.
Does your insurance cover the costs of his treatment and loss of earnings, and if he takes you to court, does the insurance cover your legal costs?
SCENARIO TWO: A flexi hose attached to your washing machine breaks, flooding much of your apartment. The flooding damages possessions, like your television and furniture, and personal items, such as jewellery and clothes. The flooding makes the apartment inhabitable. Does your insurance cover the cost of repairs to your apartment, the replacement of damaged possessions and provide you with accommodation costs?
Does your insurance cover the cost of repairs to your apartment, the replacement of damaged possessions and provide you with accommodation costs?
A major source of confusion for many owners of units, apartments and townhouses is thinking theresidential strata insurance that protects the building also covers their personal property and possessions. Residential strata insurance only provides cover for the building, common property and common contents– not your personal contents or property.
You need content insurance to protect yourself and your personal contents. Some contents insurances, like offered by CHU, are designed specifically for units, apartments and townhouses.
Contents insurance will cover your household and personal possessions such as clothing, jewellery, furniture, TV, computers, carpets and electrical appliances. It covers the cost of repairing or replacing these possessions if they are damaged in events as fire, floods and storms with new for old replacement. That means if your possessions are damaged beyond repair or stolen you will be provided with a new equivalent item, regardless of the age of your original item.
Your contents policy often includes insurance for liability claims. That is, as in scenario one, the plumber seeks recompense for his medical treatment and lost earnings then your content insurance covers these costs. It will also cover the legal costs if you defend an action brought by the plumber.
It’s important to ensure that your contents insurance, like CHU’s, includes as standard what is called portable contents. Thisprotects your smartphone, jewellery and other prized possessions when they are away from your property (for example, you lose a valuable watch in a motel you were briefly staying in), in transit, storage or when you are moving into or out of your home.
The table below shows why you need contents insurance and how it varies vs residential strata insurance:
When the unexpected occurs, speed to get you back on your feet is vital. So make sure your contents insurance, like CHU’s, offers 24/7 claims support with emergency assistance and accommodation costs of up to 12-months from the time of damage to your home.
NB It is important you read the policy purchased by your owners’ corporation / body corporate to understand what is and is not covered in your lot/unit so you can take out contentscover.
CHU are strata insurance specialists, organising the insurance for almost 1 million apartments, units and townhouses across Australia.