We are a four lot strata scheme with minimal machinery or equipment. Should we include cover for machinery breakdown in the residential strata insurance?
We are a small four lot strata group located over two storeys, i.e. two units on the ground floor and two on the first floor.
The development does not have a lift, gym, swimming pool, etc. Each unit has a garage with a garage door, reverse cycle ducted air conditioning and water heater. A common property electronic main gate gives access to the units in the development. The strata company does not own any other significant machinery or equipment.
Should we include cover for machinery breakdown in the residential strata insurance?
We generally recommend considering machinery breakdown insurance if you possess machinery items.
We generally recommend considering machinery breakdown insurance if you possess machinery items, which can encompass a wide range of equipment, including but not limited to pumps (including pool pumps), electric garage doors, elevators, central air-conditioning units, and various other machinery or electrical equipment.
In most instances, strata insurance policies provide fusion cover for motors with a power rating under 5kw. You need to refer to your specific strata policy wording and assess the motor sizes of equipment such as gates, garage doors, and ducted air conditioners to ascertain if they are eligible for the limited fusion cover.
If any of the motors powering these devices exceed the 5kw threshold or broader breakdown cover is required beyond fusion, machinery breakdown insurance should be considered.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
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Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.
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