Do I need home insurance if I have body corporate

Insurance is a must-have for peace of mind, particularly when it comes to your home. But it can be confusing to work out what types of insurance are best suited to your needs –particularly if you live, or have just bought into, a strata-titled property.

Apartment complexes, townhouses and other communal properties are governed by body corporate, also known as a homeowner’s association or property owners association. This is a legal entity that represents all the owners and is responsible for managing and maintaining common areas and facilities within the development, such as pools, playgrounds, or gardens.

Homeowners are charged regular body corporate fees, which include body corporate insurance.

But don’t be fooled into thinking that this means your home is completely insured against any claim. Body corporate insurance typically only covers the common areas and shared facilities of a building, such as the lobby, elevators, and swimming pool, as well as the structure of the building – the walls, floors and ceilings that make up the development. It also covers any permanent fixtures that are within the common areas.

Body corporate insurance does not cover the individual units or apartments within the building, or what’s inside them. That’s why it’s generally a good idea to have home insurance, even if you live in a building that has a body corporate. Here are a few reasons why:

More coverage against unforeseen events

Home insurance can protect you against a variety of risks, such as damage or loss caused by fires, storms, theft, and other unforeseen events. These types of events can happen even in a building with a body corporate, and having home insurance can provide extra peace of mind and financial protection.

Coverage for your contents

Just as with any home, your home insurance policy will cover the contents, including your personal possessions, furniture, and appliances. If you own valuable items, such as collectibles, jewellery or artwork, you may want to consider adding these to your policy to ensure they are fully protected.

Relocation expenses

Finally, home insurance can also provide protection if you are required to temporarily relocate due to damage to your home. This can be especially useful if you live in an area prone to natural disasters, such as earthquakes or floods.

Extra considerations for landlords

If you are a landlord, landlord’s protection insurance is particularly important as it can protect you against liability claims made by tenants. For example, if a tenant is injured in your rental property, they may try to hold you liable for their injuries. You are also protected against the extra wear and tear and replacement costs that rental properties typically experience.

In a nutshell, having home insurance is a good idea even if you live in a building with a body corporate. It can provide financial protection against a variety of risks and can be especially important for landlords and those who own valuable possessions.

If you have any questions about home insurance while living in a body corporate property, get in contact with the knowledgeable team at Capitol here: