As Good As SOLD

Strata Insurance: Do I Need It? Yes.

August 5th, 2007

When buying a strata property the issue of insurance is often ovelooked, especially by first-time buyers. First-timers may not have had insurance on their contents in a rental dwelling and, on buying a stratra property, may be under the misapprehension that the strata’s existing insurance is sufficient. That simply isn’t the case.

The strata’s obligatory insurance looks after the structure itself. It does not provide any coverage for the contents of the home, or for any personal liability issues that might arise for which the owner might be held responsible — an overflowing dishwasher, tub, or a leaking water bed, for example.

Strata corporations are now feeling the weight of higher insurance premiums and deductibles on their insurance, and some are now very sensitive to flood and water damage. Individual owners within a strata need to be aware of that, for if their suite can be proven to have been the cause of damage to the building they can be sued by the strata council for the damage caused. Without a policy providing for personal liability, you may well face any legal action on your own.

Insurers tell us that, in some buildings, up to 50 per cent of owners may not carry any personal insurance — a shocking figure. If you are in a strata make sure this coverage is in place. Given the liability, it’s a prudent thing to do.

Entry Filed under: Real Estate Matters