Is there Insurance on my Building?

Summary: 

Strata
If you are an owner of a lot in a strata complex - the strata company must purchase insurance which covers the buildings, common property and common area contents.

Survey-Strata
If you are an owner within a survey-strata scheme, then you must purchase your own insurance for your building. The strata company will only insure the common property (usually the driveway).

Legal liability
Both types of title also require legal liability coverage of up to $5m ($10m after the reforms). Whilst this is automatically included for individual lots and common property under a strata titled complex, things are a little more complicated for owners of Survey-Strata properties.

Survey-Strata owners must purchase their own legal liability coverage (which can be included on a building insurance policy). The strata company policy covers legal liability for the common property only. Any insurable loss event which occurs within the boundary of your lot (as defined on the strata plan) will not be covered by the strata company policy. Therefore, owners must include this option when purchasing their buildings insurance, to comply with the requirements as set out in the Strata Titles Act.

Workers Compensation insurance is required by law if the strata company employs. In WA as per the Act, circumstances that deem whether someone is an employee or sub-contractor can be confusing, you can be employing and not realise.  The Strata Company will have many people coming onto common property attending repairs and maintenance work, we would always recommend a Strata Company has Workers Compensation Insurance. Depending on what and how an accident happens, the contractor may make a claim under the strata Workers Compensation Insurance.  It is at the time of the accident that determines the facts and then who might be responsible. This is why it is important that the strata company has Worker Compensation insurance.


Excerpt From Act

Insurance is covered under Division 4 of STA 1985. Sections 53 - 59
http://classic.austlii.edu.au/au/legis/wa/consol_act/sta1985173/s53.html  


Example Case:

Maggie was an owner in a strata complex in West Leederville. After an attempted break and enter, her front window was broken. As this window formed part of the common property, its replacement was covered under the strata insurance building policy. 

Maggie contacted her Strata Manager and passed on the Police report number, along with other details of the incident. Her Strata Manager contacted the insurers' preferred glass contractor and the repairs were carried out that day, securing the unit before nightfall.

Maggie did not face any out of pocket expenditure for the repair, as the small excess was covered by strata company funds, which she contributed towards via her quarterly levies.