INSURANCE IN STRATA

I listened to a pod cast and it was about a woman who bought into a strata building (new) and lives on the 7th floor, good security to be able to get into the building, good secure parking.  She felt that she was now in a position not to have any contents insurance on her home and was loving the fact she didnt have to deal with any insurance companies anymore.  She just felt so safe and secure for the first time in her life.

DANGER !! One of the biggest claims in strata insurance is water damage - burst pipes from the apartment above you or from the side.  Also if a person falls over in your apartment and damages themselves well the strata insurance wont pay for it either as it is in your lot.

Your strata insurance pays for building insurance, common area contents, public or legal liability, office bearers (not always), catastrophe insurance, lot owners fixtures and improvements (not always), flood.

What it doesn't pay for is any damage on the inside of your apartment, i.e. if a burst pipe happens and you get flooded you will be up for new carpets, flooring, light fittings, kitchen everything internally in your apartment. 

My advice is always to get contents insurance it only costs $320 per year and well worth the piece of mind if anything does happen within your lot.  Most insurance companies now are on board with this type of insurance.

New buildings are hardly likely to have a burst pipe but do you want to run the risk?

When I first bought an apartment the one upstairs had a blockage and my tenant was away for two weeks the apartment underneath me rang me to say they had water dripping through their ceiling.  When I went to inspect the whole lounge/bedroom was covered in water as it was coming up through the kitchen sink.  The strata company paid for the repair of the blockage but it was my responsibility to pay for everything inside my unit.  Yes I did not have contents insurance as I was renting the property out myself and so that was something I didnt think about (called being green).  What I did do after that though was get all my properties insured with contents insurance including if my tenants abscond without paying the rent.  I now sleep at night.  My advice is you cannot afford not to have it.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!