Who would pay for fixing the washing machine? Ideally, if you own it, then you fix it, right? But what if it is owned by a group of people living in the same apartment complex? Then who pays for it? Is it paid by the person who last used it or the person who wants to use it next? There are many situations like this, who would fix the chipping paint on the common walls, who would be responsible for the leaking pipe in the building, who would be buying the equipment for the common garden or who would be responsible for the cleaning of the common benches. How is it handled when there is not one owner but multiple owners?
The answer is simple. Many buildings have a body corporate, a group of people who share ownership of a building and contribute to solving the above problems. The body corporate contributes towards the administration, maintenance, and insurance of the building. One of the responsibilities of body corporate is to get the right body corporate insurance. Body corporate insurance, also known as Residential Strata Insurance, covers up the costs of damage done to the shared property of a body corporate.
What’s covered under the insurance?
It covers common property of buildings which is in shared or common areas of the building. These shared areas can be recreation spaces, gym, swimming pool, common gardening space, or lift lobby areas. There can be common machinery like washing machines, dryers, common gardening equipment, plumbing, electrical fixtures, or fencing. Apart from this, some insurers also provide cover for permanent fixtures like doors, stove, tiling, and paint.
Body corporate insurance does not insure personal belongings, loss of rental income, malicious damage to the property, injury, or disability to others. The landlords can use Landlords Insurance to claim the loss of rental income, personal belongings, malicious damage, liability to others, and payout if the building is unfit for living. The tenants can insure their personal contents and injury or disability through Contents insurance.
What should you look out for?
Every building is different depending on its location, geography, structure, and risk factors. Every building’s needs and requirements will be different. Selecting the right residential strata insurance is important to be assured for the insurer’s compensation when accidents or failures happen.
Before opting for a policy, proper assessment of the building should be made. What is the main concern for the inhabitants, is the area prone to thunderstorms, or flooding, or does it have high risks of catching fire? The insurance should undertake the effects of these disasters in its terms. Also, it should include and quote very clearly the conditions when a claim can be denied.
What to do after taking the insurance?
Body corporate should conduct proactive, regular meetings, ideally once a month, to review their insurance plan’s present status. This becomes even more important when the insurance premium or maintenance is increased. Investing in a good insurance can yield good results in the long run and vice-versa investing in a bad insurance can become a regular headache. It is advisable to read all the terms and conditions before investing in a body corporate insurance.
If there arises a situation when the current insurance does not hold up to its investment, then the best move would be to research other options and change the insurance. The right insurance will save you a lot of headaches and a couple of bucks, but the wrong one will empty not only your pockets but also your peace of mind. However, no insurance is one size fits all. Only you can choose the right insurance for you.
So, what are you waiting for? Get online and visit 2bsure to get a quote now!