This article discussing strata insurance regarding storage cages for apartments has been supplied by Lia de Sousa, Whitbread Insurance Brokers.
Question: For lot owners to rent spare storage cages in our apartment building, our Strata Manager insists they take out full insurance. Is this insurance necessary?
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I’m after information regarding renting storage from the Strata Committee.
We have eight empty storage cages in our garage area and owners would like to rent them to store personal belongings. The Committee has agreed to allow this for a small fee, however, our Strata Management Company has informed our Chairperson that an insurance policy will have to be taken out by the individual renters for a sum of $10,000,00.00 each before they can take up the rental.
Does this sound like the correct procedure? Do the lessees need this insurance? If they do not have it, can the Committee be liable somehow?
Answer: It is good practice to ensure that any occupants intending to rent a storage cage have taken out the necessary insurance.
It is good practice by the Strata Committee to ensure that any occupants intending to rent a storage cage have taken out the necessary insurance e.g. contents insurance and / or liability insurance.
If the party renting the cage has no relevant cover in place, there may be some exposure to the Strata Committee in the event that loss, damage or injury occurs, particularly if the cages are located in the common area.
This post appears in Strata News #260.
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