Building insurance versus strata insurance
Building insurance typically covers the domestic residence and permanent structures like garages and granny flats. However, with strata buildings the body corporate is required by law to hold residential strata insurance, and this generally covers common or shared property under the management of a strata title.
Strata insurance usually includes cover for common areas such as gardens, lifts, walls, windows, pools, ceiling and floors. Strata insurance also includes liability cover for injury to people on common property. You should check what is covered under your strata policy.
Items that may not be covered under your strata insurance include any amendments or additions to any element of the original building, like putting in a new kitchen or bathroom, built in wardrobes etc. To make sure you know where you stand, check with your strata management to understand what you're covered for. If there are gaps in cover, you may need to look to your contents cover under your home insurance policy to cover it.
For a non-strata home, tell your insurer about any renovations that increase the value of your home, such as extensions or loft conversions. These could increase the value of your home and rebuild costs, so you may need to increase your building insurance to ensure you’re covered.
Contents insurance versus strata insurance
Items that form part of a contents cover for non-strata homes also form part of contents cover for strata-titled properties. However there are some additional areas i.e. any amendments or additions to any element of the original building, like putting in a new kitchen or bathroom, built in wardrobes etc that you may also need to factor into your contents cover under your home insurance policy.