Body corporate insurance can vary greatly between properties, and it’s important that all owners understand what is and is not covered by their specific insurance policy.

Strata insurance can be more expensive in certain areas of Australia, such as areas which are more prone to cyclones and those exposed to greater risks. Building in these areas are more expensive to insure than buildings in less-hazardous regions, so body corporate owners will have to take geographic risks into consideration when insuring their property.

Other factors which are taken into consideration when determining insurance costs include:

* The age and condition of the building

* The vulnerability of the property to an insured event

* The claims history of the strata complex

* Commercial activities carried out on the premises (for example, holiday letting)

* The costs of common property (for example, pools, lifts, car parks, fire protection systems etc.)

* Government taxes on insurance

* The level of excess payment chosen by the body corporate

Any body corporate has a legal duty to insure the property and to make sure their insurance policy meets the minimum legislative requirements. Find more on Body corporate insurance 101 here >>

This information is intended to be of a general nature only, and no person should act specifically on the basis of the information contained in this article. You should obtain appropriate professional advice based on your personal circumstances. If you’d like to talk to a body corporate specialist, click here.