Body Corporate Insurance Explained: Are You Covered?

Understanding Body Corporate Insurance

If you own a unit in a complex or apartment building, you’ve probably heard of ‘body corporate insurance’. But do you know what it covers and just as importantly, what it doesn’t? Many people assume they’re fully covered, only to get a rude shock when they try to make a claim. Let’s break it down in simple terms so you can understand exactly where you stand.

What is Body Corporate Insurance?

Body corporate insurance is a type of policy that covers shared areas in a building complex. Think of it as protection for the parts of the property that everyone uses, like the building’s exterior, stairwells, lifts, and common areas such as pools or gardens. Since these areas belong to all unit owners, the cost of the insurance is shared among them.

The big question, though, is: does it cover everything? Not quite. That’s why it’s important to understand the details.

What Does Body Corporate Insurance Cover?

A standard body corporate insurance policy usually takes care of damage to the physical structure of the building, whether from storms, fire, or vandalism. It also includes public liability, meaning if someone is injured in a shared spacelike slipping in a hallway the insurance can cover medical costs and legal fees.

Another key aspect is legal protection for committee members. Those who manage the body corporate can face legal claims, and this insurance helps cover them. Some policies even provide extra support for rebuilding costs after a major disaster.

What Isn’t Covered?

Here’s where people often get caught off guard. The body corporate’s insurance does not cover everything inside your unit. Your personal belongings like furniture, appliances, and electronics are your responsibility, so you need separate contents insurance.

Wear and tear are also not covered. If something breaks down due to age or lack of maintenance, the insurance won’t help. Similarly, things inside your unit, like carpets, curtains, and air conditioning, might not be included in the policy. If damage happens because of something an owner did like a burst pipe from DIY plumbing might also not be covered.

The Role of Body Corporate Management

This is where a body corporate management company comes in. They help ensure the right insurance is in place, liaise with insurers, and assist with claims. Without proper guidance, a building might end up underinsured or paying too much for unnecessary coverage.

How to Make Sure You’re Fully Covered

First, don’t just assume you’re protected. Get a copy of your body corporate insurance policy and go through it carefully. If something isn’t clear, ask questions.

Next, consider taking out your insurance for your contents and any parts of your unit that aren’t covered by the body corporate’s policy. It’s also a good idea to keep up with maintenance fixing small problems early can prevent expensive damage later.

Are You Really Covered?

The truth is, that body corporate insurance isn’t a one-size-fits-all solution. Many owners only realise the gaps when they try to make a claim. Being proactive understanding your coverage and arranging extra protection if needed will help you avoid financial headaches down the track.

If you need expert guidance on body corporate services in Brisbane, professional consultants, such as Archers The Strata Professional, can help make sure you and your property are properly covered.