Insurance Confusion (mine)

We own some IP's one of which is a two units property. we own one, someone else the other ie Strata Title. The land the units sit on is jointly owned. We insured with RACV using their Landlord policy for @ $230 with $10m cover. Our solicitor says this is not body corporate insurance
GIO quote $230 for Strata insurance and @ $249 for Landlord Insurance.
RACV claim their, cheaper, policy covers all eventualities including events to $10m on common land.
These 2 quotes are hugely different in price. Am I missing something? I am unskilled in the area of body corporate insurance and would welcome any comments. Thanks
GC

 

With units, you need to ideally pay two lots of insurance- one for owners corporation insurance, which covers the building and common property, as well as public liability on common areas.

However, the Owners Corporation policy covers only the areas they are responsible for. Inside the unit it is your property, and therefore you must take out your own Contents and PL insurance, and Landlord's Insurance when you rent out the apartment: the Public Liability in case a visitor trips over in your apartment/has a slip on slipperty tiles etc and decides to take legal action, as well as tenant's rent defaults and malicious damage by a tenant.

The best thing to do is read both policies with a fine tooth comb and ask lots of pertinent questions of the insurance companies, to ensure you are indeed covered for any situation of loss, both on common and private property.

 

is this usually included in the strata of the property or is it additional??

say if your renting it im guessing you wouldnt need to include contents (however issues come from fittings like stoves and carpets), and PL is usually included in LL insurance isnt it?

what type of policy (or company) do u use for units jacque? do you have a link of what they offer??

 

Hi Dave

Yes, insurance that the strata takes out covers PL- I was just pointing out that it's not just restricted to insurance of the building itself.

As far as the options available with your landlords insurance, check out this link from CGU. I use them and haven't had any problems to date.

CGU Landlords Insurance