The General provisions of relevant WA legislation means that the Council of Owners must insure:

  • Common property and strata owned assets.
  • Buildings on the parcel for a scheme.

What does Strata insurance cover in WA?

It is important to note that not all policies are created equal. You can speak with our insurance specialists to ensure your property needs are being addressed and delivered. Key coverages to understand and consider as follows:

Building

Includes any building on the parcel for a scheme whether shown on the strata/survey-strata plan or not, and includes:

 

  • proprietors’ improvements and proprietors’ fixtures forming part of the building including paint and wallpaper but excluding carpet and temporary wall, floor and ceiling coverings
  • anything prescribed as forming part of a building for the purposes of this definition,

 

Building does not include: 

  • fixtures removable by a lessee at the expiration of a tenancy
  • anything prescribed as not forming part of a building for the purposes of this definition;

Insured damage

  • fire, storm and tempest (excluding damage by sea, flood or erosion), lightning, explosion and earthquake
  • damage to property, death, or bodily injury for which the strata company could become liable in damages

Valuations should be obtained at least every five years and must be for full replacement value of the buildings.

Compulsory Insurance

Applies to common property and assets.  It must cover damage and expenses incurred in the removal of debris and the remuneration of architects, surveyors,

engineers and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration. The policy must provide for reinstatement of property to its condition when new.

 

Compulsory Insurance also applies to public risk (public liability) insurance over common property and for assets for which it is practical to have public risk insurance. Public risk insurance must provide for compensation for third party bodily injury and third-party property damage.  The sum insured for such insurance must be no less than $5million.

Strata Titles Amendment Act 2018

This will introduce reform to the existing Strata Titles Act 1985 and will have implications on the requirement on how strata properties are insured. The Strata Titles Amendment Act 2018 is scheduled to come into operation the second half of 2019.

For more information please go to the Western Australian Land Information Authority (Landgate) website:

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