Insurance policies for strata developments generally include coverage for reinstatement or replacement of the building and common property in the event of a claim. Generally, risks covered under these policies are for accidental damage from events such as impact or a storm. What lot owners and some strata managers may not know is that many strata policies offer special or additional benefits that can be triggered if there is a valid claim.
Strata policies generally cover physical damage to the property (e.g., a burst pipe), however, expenses incurred towards repair or replacement may be covered under additional benefits (e.g., an increase to an electricity bill if dryers are hired to remove water from carpets).
What else is covered under additional benefits?
In the event of a claim involving damage to the property, the policyholder can also claim for related increased usage of gas and water. Additional management charges of metered electricity, gas, sewerage, and oil are generally included. Compensation for damage to shrubs, lawn, and rockwork, removal, or disposal of fallen tree branches and stumps after a claimable event such as a storm also fall under additional expenses.
How do you claim additional benefits?
It is important to note that each Strata Insurer has its own policy wording which means coverage, exclusions, and benefit amounts may differ per policy. To claim additional benefits, be sure to speak to your claims manager, who can review your policy and advise the type of information needed.
WITH YOU ALL THE WAY
If you have questions about your policy or in the event of a claim, please reach out to your broker to discuss further.
Claims Executive – Risksmart