Strata popularity increases the need for landlord research
Strata-titled rental property is becoming increasingly popular
and with this the need for landlords to have adequate insurance remains high.
According to Terri Scheer Insurance Manager, Ms Carolyn Majda, landlords need to do their research when selecting insurance.
“While owning strata-titled property can have good rental income benefits for landlords, it does open up further questions about how to insure against all of the risks,” Ms Majda says.
“A standard building and contents policy won’t usually cover landlords for the specific risks associated with owning rental property.
“These include malicious damage by tenants, many types of accidental damage, legal liability for occurrences on the property that cause death or bodily injury, and loss of rental income as a result of damage to a property or a tenant absconding.
Every landlord, regardless of the type of rental property they own, should have a tailored landlord insurance policy that covers them for these risks.
“In strata-titled apartments strata insurance is held by the body corporate and paid for by owners’ levies. The body corporate is responsible for insuring the buildings whilst the owner is responsible for common property areas, roofing, external walls, walkways and garden areas.
“However, strata insurance cover usually doesn’t extend to cover the interior of individual units including internal wall coverings, curtains or removable flooring such as carpet or floating floors.
“This means that if a tenant damages the property or stops paying their rent, the landlord is very likely to be left out of pocket if they don’t have landlord insurance in place.
“A good landlord insurance policy should provide legal liability cover of up to $20 million,” says Ms Majda.
