Another type of insurance cover that is frequently overlooked is the liability exposure of the owner of a strata unit.
A body corporate will insure the strata building and common areas against property damage and legal liability. As an owner of a unit in the strata complex, you will be protected against law suits or liability claims against the strata company.
However, the strata company will only protect the interests of its members insofar as they form part of the body corporate. They will not protect owners being sued individually.
A case a few years ago involved a unit owner who laid paving on “his” patio which was part of the common area. A tenant tripped on the paving and sued the body corporate and the owner separately.
The body corporate insurer defended the body corporate and left the unit owner to fend for himself. Fortunately, the owner had a Landlord Protection policy covering the contents of the unit which had a liability insurance included, so he was OK.
It is apparent that a lot of owners don’t consider the contents of the unit worth insuring and consequently don’t carry liability insurance.
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