Quick answer: Sectional title insurance usually covers the buildings and common property of a scheme, together with key risks such as public liability and selected policy extensions. It does not normally replace an owner’s own contents or personal insurance.
Quick answer
The exact cover depends on the insurer, schedule, policy wording and scheme needs. A good review should separate what the body corporate insures from what each owner or tenant must insure personally.
Common items considered under the scheme policy
- Buildings and permanent structures
- Common property and shared facilities
- Geysers and resultant water damage, subject to wording
- Public liability for common property incidents
- Fidelity cover, where applicable
- Trustee indemnity or trustee liability extensions, depending on the policy
What owners should not assume
Owners should not assume the body corporate policy covers household contents, personal valuables, rent loss, personal liability or every internal improvement. These items may require separate personal insurance.
What trustees should check
Trustees should review the sum insured, valuation, excesses, exclusions, claims process, owner communication and renewal changes.
When to speak to a broker
Speak to a broker when the scheme has a renewal coming up, a major claim, repeated geyser losses, unclear excess disputes or uncertainty about owner versus body corporate responsibility.
Important: Insurance wording, excesses and claims handling differ between policies. Trustees should check the actual policy schedule, wording, scheme rules and renewal terms before making decisions.