If you're a resident in a strata-titled property in Victoria, it's important to understand what is and isn't covered by your Owners Corporation insurance. In most cases, it covers damage to the common areas and shared facilities of a building. Here's a closer look at what usually is and isn't covered by Owners Corporation building insurance in Victoria.
In Victoria, Owners Corporation insurance policy typically covers damage to the following:
Building structure: This includes damage to the walls, roof, floors, and other structural elements of the building. If your building suffers damage from a fire, storm, or other covered event, the repair costs will typically be covered by the building insurance.
Common areas: This includes damage to shared facilities such as elevators, car parks, gardens, and swimming pools. If a common area suffers damage from a covered event, the cost of repair or replacement will typically be covered by the building insurance.
Fixtures and fittings: This includes damage to shared fixtures and fittings such as light fittings, air conditioning units, and hot water systems. If a fixture or fitting suffers damage from a covered event, the cost of repair or replacement will typically be covered by the building insurance.
Liability: Building insurance may also provide coverage for legal liability claims that arise from injuries or property damage suffered by third parties on common property. This can include slip and fall accidents, property damage caused by falling objects, and more.
What isn't covered by Owners Corporation building insurance?
While Owners Corporation building insurance can provide valuable coverage for a range of events, it doesn't cover everything. Some of the items that are typically not covered by building insurance include:
Damage to individual units’ contents: Owners Corporation building insurance usually doesn't cover damage to contents. This means that if a resident's personal property is damaged in a covered event, they will need to rely on their own home and contents insurance to cover the cost of repair or replacement.
Wear and tear: Building insurance typically only covers damage that is caused by sudden, unexpected events such as storms, fires, and water leaks. It usually does not cover damage that is caused by wear and tear or gradual deterioration over time.
Acts of terrorism: Most building insurance policies exclude coverage for damage caused by acts of terrorism or war.
Illegal activities: Damage caused by illegal activities such as drug cultivation or theft is usually not covered by building insurance.
Non-standard building features: If a building has non-standard features that require specialised coverage, such as heritage-listed buildings or buildings with unusual construction materials, the Owners Corporation may need to purchase additional coverage.
In conclusion, if you're a resident of a strata-titled property in Victoria, it's important to understand what is and isn't covered by your Owners Corporation building insurance. Please note that the above is general advice and if you have any questions about a particular Owners Corporation insurance policy, contact one of our team members and we can pass on your enquiries to the OC’s insurance broker.