This article and Q&A alerts Queensland lot owners to the fact that air-conditioning units servicing an individual lot are not covered by strata insurance.
Table of Content:
- QUESTION: I own an investment unit in a strata building and I have landlord insurance. What is covered under my landlord insurance and what is covered under my strata insurance?
- QUESTION: Are the compressor units on the roof and the header units inside the apartment, together comprising my air conditioning unit, covered under Strata insurance or my personal contents insurance?
- ARTICLE: Is Your Air conditioning Unit Covered By Strata Insurance?
RECEIVE OUR REGULAR STRATA NEWSLETTER
Question: I own an investment unit in a strata building and I have landlord insurance. What is covered under my landlord insurance and what is covered under my strata insurance?
Answer: If you were to pick the unit up and shake it, anything that falls out is lot owner’s contents
The basic principle is that if you were to pick the unit up and shake it, anything that falls out is lot owner’s contents + temporary flooring such as carpet, blinds & curtains, appliances that are not permanently attached and aircon units servicing an individual lot (QLD only).
Other permanent fixtures including but not limited to kitchen & bathroom cabinetry are covered by strata insurance.
Lot owners should also have contents/landlords insurance to cover property not insured by the strata policy & liability within the lot and I always suggest lot owners add an extra say $10,000 contents cover on what they believe should be covered for any incidental items not considered as it might only cost say $50 for the extra piece of mind.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129
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. 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.
This post appears in the April 2021 edition of The QLD Strata Magazine.
Question: Are the compressor units on the roof and the header units inside the apartment, together comprising my air conditioning unit, covered under Strata insurance or my personal contents insurance?
Our 75 apartment complex has Strata Insurance which mentions cover for motors burnt out by Fusion. I also have contents insurance. Are the compressor units on the roof and the header units inside the apartment, together comprising my air conditioning unit, covered under Strata insurance or my personal contents insurance?
Answer: In Queensland, Airconditioning units that service an individual lot are the lot owners responsibility.
In Queensland, Airconditioning units that service an individual lot are the lot owners responsibility to insure under contents insurance.
So if you have a contents insurer you should make contact with them first. They may need a decline letter from your strata insurer before a claim can be considered.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129
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. 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.
This post appears in the April 2021 edition of The QLD Strata Magazine.
In Queensland, is Your Air conditioning Unit Covered By Strata Insurance?
Queensland lot owners of strata properties need to be mindful that air-conditioning units, whether fixed or not, are not covered by strata insurance.
The Body Corporate and Community Management (Standard Module) Regulation 2008 implicitly states that Air-conditioning units servicing an individual lot are the not part of the definition of building for insurance purposes:
.. building includes improvements and fixtures (but not including carpet) forming part of the building, but does not include —
- (c) mobile or fixed air conditioning units servicing a particular lot;
Other states in Australia do not have such exclusions in their strata legislation for Airconditioning units and therefore, insurers only seek to exclude Airconditioning units in Queensland in their insurance policy.
It is not unusual for individual states to exclude cover for items a reasonable person might deem to be part of the building, for example in New South Wales and Australian Capital Territory strata legislation excludes cover for paint and wallpaper.
To avoid any gaps in cover we recommend all owners of lots in strata take out contents or landlords insurance which is intended to cover anything that is not covered by strata insurance.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129
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. 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.
This post appears in Strata News #292.
Have a question or something to add to the article? Leave a comment below.
Read next:
- QLD: Q&A Body Corporate Rules and Insurance for Duplexes
- QLD: Short Term Letting Affecting Strata Insurance
Visit our Strata Insurance OR Strata Legislation QLD.
Looking for strata information concerning your state? For state-specific strata information, take a look here.
After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.
I accidentally broke my shower screen and my Strata Manager said that Strata will provide a replacement screen, it was beyond fixing and so old. I was going to have my bathroom renovated in a year so we agreed to replace the screen then. Strata paid on average $500 and this came from the funds, not through our insurance company. Our new Strata Manager has decided this is illegal and will not accept my request for a replacement screen, despite having no formal insurance policies in place with her company, our Insurer and the COO.
She is also not allowing me to have my walls fixed after they were water damaged by my own bathrooms unsealed tiles. Our Strata Manager back then said I have to pay to for the waterproofing, tiling and all of that expense, however, internal hallway water damage Strata will pay for. One insurer called it resultant damage.
My concern beyond my own self is why this new Strata Manager wants to include our Insurance Excess Policy in our By-laws. I haven’t seen that before!
Regards
Ianthe
The strata corporation can not pay for repairs and maintenance to property inside your lot unless you can demonstrate a legal responsibility – for example there is damage to your property due to negligence from the strata corporation. Repairs to your lot is your responsibility.
The requirement for the strata corporation is to arrange insurance, however a broken shower screen for the value of $500 may fall below the policy excess, in which case the lot owner is responsible for the costs.
In relation to the water damage claim, we recommend you request the matter is referred to the insurer for a formal response on the claim. Any matters not covered by insurance that are inside your lot are your responsibility to maintain.
Tyrone Shandiman
Strata Insurance Solutions
http://www.stratainsurancesolutions.com.au
07 3899 5129
[email protected]
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.
Hi Richard – Is that in Queensland? None-the-less they are covered as part of owners contents insurance.
Shop around, there is at least one insurer (they do not deal with brokers) who covers individual apartment air conditioners