APARTMENTS & STRATA PLANS

These are similar in providing residential accommodation for many in one or a group of buildings.  The main difference in insurance needs is that:

1. Apartment owners need rental income protection to cover ongoing financial commitments (e.g. mortgage) whilst their building is being rebuilt or repaired.

2. Strata Plans need Directors & Officers Liability to defend legal suits brought against board members arising from their bad decisions or wrongful acts;

Important elements of an insurance package that should be incorporated are;

1. Insure your "Property of Every Description" rather than simply "building" as this will pick up items like lobby furniture and lawn mowers in storage;

2. Include Building By-Laws.  Without this you won’t be reimbursed for the increased cost of reconstruction to meet current building codes nor the cost to demolish and clear away undamaged portions of the building as ordered by the local building inspector;

3. Include Underground Services and Foundations.  Major fires and earthquakes can destroy these;

4. Earthquake deductible of 10%.  Some insurers impose a 20% deductible.  This can mean a difference in claimable amount of $500,000 on a $10,000,000 building.

5. Obtain Glass Breakage insurance with a $100 deductible.  Glass claims are common;

6. Buy high limit General Liability insurance. It doesn't cost much. If your lower limit is insufficient to cover the judgement and costs, then other assets, such as the building, will have to be liquidated to satisfy the amounts awarded;

To provide a proposal please fill out the form Strata Insurance Form