Quick Answer: Does Strata Insurance Cover Water Damage?

What repairs are body corporate responsible for?

1) When there is any damage or loss to common property, the owners’ corporation is responsible for the repairs.

This also includes repairs to the item causing the damage such as a clogged gutter, a failed roof or a leaking pipe..

Why is strata so expensive?

As mentioned, strata levy increases can be due to adding facilities or because of an insufficient amount of money in the capital works fund to cover repairs. … However, there is another important factor that strata levies can increase – inefficient strata management.

What is covered by strata insurance?

What is strata insurance? Strata insurance covers shared or common property in a strata-managed complex, owners’ corporation or body corporate-managed complex. Generally this covers external areas such as balconies, common-area gardens and barbeques, pools and tennis courts, intercoms and garages.

Who is liable for water damage in a condo?

According to the National Association of Insurance Commissioners (NAIC), condo owners are responsible for insuring their own unit. That means if a water leak causes damage to an individual condo, it’s typically the responsibility of the condo owner, not the Homeowners Association (HOA).

Is plumbing a strata issue?

When you live in, manage or own a strata property, you’ll have to deal with plumbing issues just like any other home, apartment or business facility. … In general, anything inside the unit is the unit owner’s responsibility, while any common areas are the strata property owner’s purview.

What do I do if my apartment ceiling is leaking?

Make the call as soon as you notice a leaky roof. Follow up with an email if you don’t reach the landlord, or walk over to the property manager’s office and notify them in person if you live in an apartment building. Unplug electronics in the room, and remove them. Place them in a room where there are no leaks.

Is Strata responsible for window cleaning?

Our apartment complex is registered with the Land Titles Office prior to 1 July 1974. Our Strata Manager is adamant that regardless when the Strata Plan is registered, the Owners Corporation are responsible for the costs of exterior window cleaning to all apartments.

What happens if you don’t pay your strata fees?

An owner’s obligation to pay strata levies is independent of any other matter between the owner and the body corporate. Therefore, if an owner refuses to pay his/her/its strata levies – the owner will become non-financial, and incur interest at 30% (or such lesser rate set by the body corporate).

Can you negotiate strata?

It’s not impossible – you can negotiate a cut in your strata levies. … Before you can act to cut levies, you have to understand what they are. They’re your share of the cost of running your building.

Is waterproofing covered by strata?

In New South Wales, waterproofing is categorised as a major renovation work. Also, walls and shared plumbing are generally part of strata common property, and therefore usually owners corporation responsibility to fix and maintain.

Is home insurance covered by strata?

Under a strata scheme in NSW, the owners corporation is legally required to take out strata insurance cover for the building, common property and common contents managed by the owners corporation. Strata insurance covers the following: … Public liability insurance for common property areas.

What happens if you don’t pay body corporate fees?

In addition to recovering the unpaid levies, a Body Corporate may also seek to recover: any penalty for late payment, including interest of not more than 2.5% per month. any costs reasonably incurred by the Body Corporate in recovering the amount outstanding, such as legal costs.

What does the body corporate insurance cover?

The Body Corporate insurance covers damage and consequential damage to the building itself and all fixtures within the units. The insurance is for reinstatement of buildings but does not cover normal wear and tear, but it does cover legal liability on the common property.

What does strata pay for?

Strata fees, also called levies, are contributions generally paid quarterly into the strata plans bank account. These fees are used to fund the ongoing expenses of the scheme for things like cleaning, gardening, electricity and building maintenance, plumbing works etc.

Are strata fees worth it?

Higher strata fees can be a great sign of a good investment, and low strata fees can actually be a sign of a disaster waiting to happen. Many small and minor maintenance issues can turn into major and expensive ones if left untreated, so I always look for an active strata when analysing potential investment properties.