What Insurance to Get - Apartment Owner/Occupier

• 

  retiredfeline on 29/11/2016 - 10:40

  +2

  Yes, strata insurance covers common property. You have to get your own home and contents insurance.

  • 

    Sex on 29/11/2016 - 10:50

    Thanks! If strata covers common property and everything outside of my immediate apartment falls into this category, why is there a need for me to get 'home insurance' if 'contents only' already covers flood damage, fire, theft, etc?

    In other words, why should I get both instead of the one and do you have examples of any instances when 'home insurance' would cover something that 'contents only' wouldn't?

    Thanks for the help!

    • 

      Skramit on 29/11/2016 - 10:58

      +1

      Think of home insurances as cover for all of the physical building structure - like walls, ceilings, doors, windows, plumbing, lights, etc.

      Contents are your personal possessions - if you sold and moved out, all the stuff you would take with you. EG Clothes, TV.

      So if for example there was a fire and everything in your bedroom got ruined, you'd likely have a claim on both home strata insurance AND contents insurance policies. The home insurance for a new bedroom to bee built and painted. Whilst your contents insurances would cover your clothes and stereo.

    • 

      retiredfeline on 29/11/2016 - 11:10

      As Skramit says, things that are not contents are those that cannot be taken with you. If flood or fire damages your wall, or bathroom fittings, those are not covered by contents. You can easily go to an insurer's website and read what contents is defined as.

• 

  Skramit on 29/11/2016 - 10:50

  +1

  Ask yourself - If there is a fire and your apartment needs to be demolished and you lose everything - how much money would you need to replace everything from new? Once you add up the cost of buying new clothes, a toaster, a microwave, a new shaver etc etc it adds up quickly.

  be careful not to under insure.

  • 

    Sex on 29/11/2016 - 10:52

    Thanks for the tip! So you're referring to 'contents insurance' only and not 'home & contents insurance', am I right?

    • 

      Skramit on 29/11/2016 - 10:53

      +1

      Correct. You only need contents insurance as your Strata plan will have insurance. Your body corporate fees are paying for the building insurance.

      if curious what it covers, ask your body corporate rep for a copy of the insurance plan details. So you can see if it covers a leaky tap etc

      • 

        MITM on 29/11/2016 - 11:09

        Not quite correct. If your leaky tap ruins your carpet, the carpet is a fixture and not a "content" and likewise if the water seeps into the internal walls, the walls are not "contents"
        And God forbid the water enters the apartment below, obviously you haven't covered your neighbours contents - you need public liability which comes with "Home" insurance.

        Yes, and never under insure your contents.

        However - if your leaky tap is caused by faulty workmanship (ie when the building was built) - then your BC's insurance will cover everything.

      • 

        Sex on 29/11/2016 - 11:15

        @MITM: Yes, that's why its so confusing. I've spoken to the strata manager who assures me that the only cover I need is for contents. I'm afraid that he doesn't know what he's talking about and that if any of the issues you mentioned come up, I'll be in
        trouble.

      • 

        ZippyRoo on 29/11/2016 - 22:31

        @johndoe1: I'm actually faced with the same situation and I have been wanting to call up an insurance company and ask them to confirm but I think you're correct, your body corporate covers the building insurance and all you need to get is contents. I've tried to look for Landlord or building insurance for my rental (which is an apartment) but when I type in the address I get nothing for those types which led me to the above belief.

• 

  MITM on 29/11/2016 - 11:04

  Your questions you can ask any insurance company - or use the online chat function.

  But what if you leave the stove on and you cause smoke damage to other apartments?
  And the tenants of the other apartments are forced to move out, and the landlord/s come to you for the missing rent.
  What if you leave your boots outside the door and someone trips on them.

  Your home & contents (combined discount)will also come with Public Liability to cover the above.

  Once you move into a "Strata community" you have added responsibilities, as opposed to detached dwellers.

  And your mortgage company will want you to insure your apartment bricks & mortar anyway (and provide proof annually).

  Just shop around, Coles and Woolies insurance are good IMHO.

  • 

    Sex on 29/11/2016 - 11:15

    Thanks for the tip, I'll try live chatting them!

• 

  MITM on 29/11/2016 - 11:51

  +1

  And just off topic, one of my tenants sued me because his boat got stolen from the "security" garage.
  At the time the door was broken (seized motor) and so the gate remained open to allow entry/exit.

  As the car space was alotted to my title, it was my property and nothing to do with BC.
  Fortunately BC had signage which stated Car Parking for Tenants & Owners only. Car being the operative word.

  Oh, and another tenant requested we install a pool. You'd think they'd have noticed there was no pool before choosing to move in and looked elsewhere.

  My advice is to get yourself onto the BC committee to stay informed. There are good BC's and bad BC's.

  • 

    airzone on 29/11/2016 - 13:34

    +2

    Oh, and another tenant requested we install a pool.

    And you didn't give them one? Geeze.

    • 

      MITM on 29/11/2016 - 13:48

      +1

      Well, we did laugh about the absurdity and were thinking we could put an inflatable toddlers pool on the front lawn as a joke, and request a rent rise for the added amenity.
      I could write a book.

• 

  Kevan2 on 29/11/2016 - 22:48

  All interesting and good post replies.

  Work from the premise that Shit happens and you will be left in the same position as you were before the event/events happened. It is not a Christmas present.

  I would never trust that the body corporate responsibilities are always met. Not because of fraud, although that happens, but sometimes due illness, neglect, beyond skill/pay grade or the cheque got lost in the mail. Banks now do not follow up renewal of insurance policies as they once did.

  As a minimum base I would have at least = Contents , Full accident or loss old for new, and not limited to the confines of your unit. Contents may or may not include curtains, carpets, fixed goods such as stoves, hotwater, air con ….. . It also should cover Public Liability. Contents may have listed goods for specific items like camera, jewelry, teck and software. It it does not look at personal effects coverage.
  = Home and buildings as mentioned talk to company, brokers, and compare services to see what they would recommend. There may be a shortfall between the quality of your unit, security, doors to what body corporate carries, and also it will have public liability. You will be surprised at amount that you will need to carry. It may take up to 10 years to get a case on public liability to be ruled via courts against you.

                                       = Income protection insurance  as you will need to protect yourself beyond what is carried inside your super. If there many policy coverage is only for 24 months and hopefully you will live to at least 65.  Some policies now have redundancy insurance which you will need to read and understand carefully, As a side some credit cards have some form of this.
  
                                        = If you don't die insurance  - Trauma coverage - look at events ie Heart, cancer, loss of legs which coverage should be enough to clear loan, meet cost of renovations to maintain life style or cover cost difference in buying another more suitable home [ramps, wider doors, location]. Same questions for if you are permanently  disabled TPD, NOT all disabilities are covered under Trauma.
  
                                         = Death your call here, 
  

• 

  Stroudie on 30/11/2016 - 11:18

  Hi, I suggest that you speak with an insurance broker, They look after YOU and will advise on the best cover most competitive pricing (remember, you get what you pay for)
  I've noted some of the previous comments & some are at best, confusing, others downright incorrect.
  You should only need a contents cover, the coverage for interior of the unit including all that you own together with interior painting, floorcovers, wallpapering etc. This policy will include personal liability (public liability) cover for you. The building must by law, be covered by a strata plan insurance policy, the body corporate will handle this. It will probably be looked after by a specialist body corporate manager. You are entitled to attend body corporate meetings & you can raise this question & any others you may have.
  Talk to an insurance broker. They know the terms & definitions of the policy eg: what constitutes building & what is contents.

• 

  HeWhoKnows on 01/12/2016 - 20:11

  +1

  You can only get contents insurance. Building insurance is organized by the body corporate. Best place to find the cheapest quotes is comparethemarket.com.au Forget about brokers. Disgaree with stroudie above. They will always advise the insurance that gives them the best commission and YOU end up paying for it.

  • 

    Sex on 02/12/2016 - 10:19

    What do you mean by we 'can only' get contents insurance? Are we not allowed to get home insurance if we already are under a strata building insurance plan? Thanks.

    • 

      HeWhoKnows on 09/12/2016 - 20:55

      Nope. The building does not belong to you.

• 

  Stroudie on 02/12/2016 - 09:56

  Well, amayzingone, you must have had a past unpleasant experience with a dodgy broker. A competent broker puts your needs & requirements before their commission.
  By all means use comparethemarket, at your own peril. They do not offer advice, it is up to you to decide the policy you will take out & to acquaint yourself with all the terms & conditions of the policy coverages. A broker does all this for you. Also remember, that in the event of you having a claim, the broker handles this for you & will go into bat on your behalf, against the insurance coy. if they are not paying the full claim or indeed, deny the claim.

  • 

    HeWhoKnows on 09/12/2016 - 21:03

    +1

    You have too much faith in brokers. Been proven over and over again that most brokers look after their pockets first. And why wouldn't they? Thats why you get all their service. But at what cost?
    I asked a broker to give me a price on building insurance.
    Brokers Quotes were $4,000 to $6000
    I did my own research and got a policy with GIO for $1600.
    Thats because brokers dont represent GIO, Nor NRMA nor any of the other big insurers.
    There is just nothing in it for them with the big guys.
    So you are cutting yourself out of the biggest and most competitive insurers by going with a broker.

    Yes Comparethemarket is the best way to go any day you like.
    Yes Correct. you cant just compare on price.
    Yes comparethe market makes it easy to compare policies and terms side by side
    yes you can call comparethemarket FREE to help you choose the right policy.

    Suggest you give them a go next time and compare with your broker. I bet your broker will prove much more expensive. That might be fine if you want them to do all the work for you. But for most of us and in particular, this poster, the cheapest policy that fits the bill will do.

• 

  Stroudie on 10/12/2016 - 09:43

  -1

  GIO & NRMA do not deal with brokers, hence brokers are unable to offer their products.
  Re your GIO quote compared to the other quotes offered, I'd bet you didn't compare apples with apples ! What research did you carry out ? other than contacting GIO direct & receiving a quote over the phone. Did you obtain the PDS for the quotes you received & read ? Perhaps you have obtained a coverage that is not as broad as the other options. eg Defined Events as opposed to Accidental Damage. You don't mention what type of building insurance you sought. Was it commercial building, residential building, rental property or strata ? All of these types of buildings have different policy wordings, terms & conditions.
  I understand that saving money is very important, but then again, so is having the correct policy in place. All very good to state that you saved a considerable amount, but then start whinging when the cheaper policy does not offer the protection when you need it at claim time.