Looking for a contents policy after some neighbours in the area had some damage done to their unit via a burst water pipe and inturn shorted their electricals and their downstairs neighbour etc.
I'm trying to get clarity on value to insure but if it doesn't fall under the strata policy (unit in Sydney). I had thought the strata had a policy to cover things that are outside the unit i.e in the walls etc. however the neighbour was told because the pipe in their sink burst it's internal so the damage to their floors, tv and other electrical things (lights) wont be covered under the strata policy.
Neighbour is up for replacemnet of their floor, laundry (washing machine and hot water tank) and some electrical devices that were sitting on the floor that have shorted and the internal switch box etc.
when selecting a policy do I have to factor in replacement value of say everything across fixtures and products? ie. the kitchen or bathroom needing to be replaced in full? or am I just setting a value for incident cover?
Contents is essentially everything that isnt fixed. Flooring is usually home insurance/strata insurance (because flooring is fixed) not contents insurance; although floating floor boards are not fixed and so are contents (not home insurance). Carpet is an odd one - most people will say its a fixture but but usually its covered under contents not home/strata ie its not treated as a fixture. Damage to wiring should be covered by strata but the actual light fittings (lightshades or the bulbs) wont be covered. Tiles and original floorboards are fixtures
its just as important to figure out what your strata and contents insurance covers and does not cover as figuring out the value you need to cover. No point including $10k for (say) flooring if your contents policy doesnt cover the kind of flooring you have.
Definitely anything that is yours and you will take with you when you leave - furniture, clothing electrical appliances (including dishwashers etc) - need to be covered by contents