We received a question from a TAS lot owner about strata insurance Tasmania. The following response has been provided by Whitbread Insurance Brokers.
Question: The insurance company said our home was part of a Strata scheme so all properties on that scheme should be insured by the Strata. What do we need to know about strata insurance Tasmania?
We have a property in Hobart which was one of three houses that are jointly serviced by utilities. To turn around a quick sale, the vendor converted them to Strata. This has caused major problems for our particular property.
We recently tried to insure our home, but the insurance company said it was in a Strata scheme so all properties on that scheme should be insured by the Strata. I don’t know if this is correct. There is no body corporate which I think, by law, we should have.
In general, I have no idea which way to proceed with this problem. What do we need to know about strata insurance Tasmania?
Answer: In Tasmania, if a property is a Strata Scheme, it is legislated under the Strata Titles Act 1998 that the building(s) and common areas of the property must be insured under a Strata Insurance policy.
In Tasmania, if a property is a Strata Scheme, it is legislated under the Strata Titles Act 1998 that the building(s) and common areas of the property must be insured under a Strata Insurance policy. Please refer to the relevant section of the Strata Titles Act 1998:
Insurance (sections 98 to 101)
The body corporate must insure all buildings and other improvements (if any) on the site. This applies whether the buildings or improvements are on common property or are on privately owned lots. The body corporate must also take out and maintain public risk insurance over the site (see Chapter 4 for more information on a body corporate’s responsibilities to insure).
As this particular property is a Strata Title, Strata Insurance is the only way in which you will be able to insure the buildings / common areas of the property, collectively with the other owners in the Strata Scheme.
It is also worth noting that Strata Insurance will only act to insure the building and common property. In order to protect contents inside of the property, you should consider purchasing one of the following insurance policies:
- Contents Insurance – if the property is owner occupied
- Landlord Insurance – if the property has been leased to tenants
Should you require free strata property advice in addition to the above, we recommend contacting one of our clients who is a local Strata Management expert:
TAS Strata & Property Group
P: 03 62 231 701
E: [email protected]
This post appears in Strata News #193
This information is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.