Property Lease Lawyer

When purchasing a property in a strata-managed building, many homeowners wonder: “Do I need home insurance if I have body corporate?” While body corporate insurance covers some aspects of the property, it does not provide complete protection. Understanding the differences between body corporate insurance and home insurance is essential to ensure you have adequate coverage.

What is Body Corporate Insurance?

Body corporate insurance (also known as strata insurance) is a policy arranged by the owners’ corporation or body corporate to cover common areas and shared property within a strata complex. It typically includes:

• Building structure (external walls, roof, and common property)
• Public liability for common areas
• Shared facilities (e.g., lifts, gardens, and pools)
• Damage caused by fire, storms, or other natural disasters

While this insurance is essential for maintaining the overall property, it does not cover personal belongings or specific risks associated with individual units.

Why You Still Need Home Insurance

Although body corporate insurance provides coverage for common areas, there are several reasons why you should consider additional home insurance:

1. Protection for Your Personal Belongings

Body corporate insurance does not cover the contents of your unit, such as furniture, electronics, appliances, and personal valuables. Contents insurance ensures that your belongings are protected in case of theft, fire, or accidental damage.

2. Coverage for Internal Fixtures and Renovations

If you have installed new flooring, upgraded kitchen cabinets, or made other renovations, these may not be covered under body corporate insurance. Landlord or home insurance can protect these improvements.

3. Liability Coverage Within Your Unit

While body corporate insurance includes public liability for common areas, it does not cover accidents that occur inside your individual unit. If someone is injured in your home, you could be held financially responsible without appropriate coverage.

4. Loss of Rent or Temporary Accommodation

If your unit becomes uninhabitable due to fire, flood, or another insured event, home insurance can cover temporary accommodation costs or loss of rental income for landlords. This is not included in body corporate insurance.

What Type of Home Insurance Do You Need?

Depending on your situation, you may require one or more of the following types of insurance:

• Contents Insurance – Covers personal belongings inside your home
• Landlord Insurance – Protects investment property owners against tenant-related risks
• Strata Title Home Insurance – Covers unit-specific fixtures and internal damage

How to Choose the Right Insurance Policy

When selecting a home insurance policy, consider:

• What is covered by your body corporate insurance? Request a copy of the policy to understand the exclusions.
• The value of your personal belongings and fixtures – Ensure your coverage is sufficient.
• Your risk exposure – If you live in an area prone to floods or storms, check for appropriate coverage options.

Conclusion

While body corporate insurance provides important coverage for shared property and common areas, it does not fully protect your personal belongings, internal unit fixtures, or liability risks within your home. Investing in additional home insurance ensures comprehensive protection and financial security.

If you’re unsure about your coverage needs, consulting with an insurance professional can help you choose the right policy for peace of mind.