If you own an apartment in a multi-story building or complex, you should consider insurance for your apartment. Why? Because your body corporate’s insurance covers the apartment’s structure, but it won’t cover the inside of your apartment. You’ll need a contents insurance policy to cover your belongings, internal walls, fixtures and fittings inside your apartment.
If you’re leasing out your apartment to a tenant, you might also consider getting landlord’s insurance, as well as contents insurance if your apartment is rented out furnished.
Renters don’t need apartment insurance, but may consider contents insurance to protect their belongings.
Apartment insurance isn’t a specific product you can purchase. However, you can help safeguard your apartment through:
There are six reasons it’s important to get insurance for your apartment.
If you have strata insurance for your apartment, it typically covers loss or damage to your apartment’s external structure, caused by certain events like flooding, storm, fire, and more.
On the other hand, if you have a contents insurance policy for your apartment, it covers your apartment’s internal walls, fixtures and fittings (i.e. kitchen cabinetry) if they’re damaged or destroyed from certain events as well as your contents inside the apartment.
It also covers your personal belongings in the apartment if they’re stolen, or if they’re damaged or destroyed by several causes (e.g. fire, storm, rainwater damage).
Contents insurance can cover such possessions as:
If you’re leasing out your apartment, you can get landlords insurance which can cover:
It’s important to check your PDS to determine exactly what’s covered by your policy.
If your apartment is under strata title and you’re paying body corporate fees, chances are high your body corporate will have taken out strata insurance that covers the building therefore there would be no need to take out home/building insurance. Your strata insurance generally covers your building, external walls, gutters, balcony, ceiling and shared facilities, such as:
However, if required, you’ll need contents insurance to cover fixtures and fittings inside your apartment, such as interior walls, fixtures and fittings (i.e. your kitchen fit-out, bathroom cabinetry) or your personal belongings (i.e. furniture, appliances, carpets, etc.).
If you pay body corporate, strata insurance can cover you for damage to your apartment’s structure. However, you should consider taking out necessary insurance to cover the tenants you’re renting out your apartment to, and to protect any belongings you may have left in the apartment.
Landlord insurance can cover you for loss of rent and rental default (if your tenants break lease early or can’t pay their rent) and legal liability (if someone is injured in your apartment and you’re at fault). Some landlord insurance policies may even cover malicious damage to your apartment caused by your tenants.
If you’re leasing out a furnished apartment, you may also want to consider taking out contents insurance. If you’ve left appliances and furniture in your leased-out apartment, a contents insurance policy can protect them against damage or theft.
As an apartment owner, it’s your responsibility to protect your investment; the only thing you’re not responsible for are your tenants’ belongings.
If you’re a tenant in an apartment, you won’t need to take out insurance for the structure of the apartment itself – that’s the responsibility of the owner. However, you will be responsible for protecting your personal belongings from damage and theft, which you can do with a contents insurance policy.
Damage to the building (i.e. external walls, balconies) or shared facilities (i.e. swimming pools, common areas, lifts, car parks) is typically covered through strata insurance, which is paid for through body corporate fees.
No, claims for building defects or faults are generally not covered by any type of insurance; most, if not all, insurance policies typically have a defects exclusion.
There are a number of factors that can affect the cost of your contents insurance premium. These factors may include:
You can potentially reduce the cost of contents insurance for your apartment if you: