Why Commercial Strata Insurance Is Wise Investment?


Best Landlord Building InsuranceWith new legislation introduced in November 2016, many are flocking to online resources to learn more about commercial strata insurance and its benefits. Commercial strata properties such as retail shops, office spaces, warehouses and multi-tenanted sites are highly valuable to their owners as these do not only bring in steady flow of income to their coffers, any damage may also lead to be catastrophic. In some cases, strata properties with no adequate protection from unforeseen circumstances can easily put owners in a quandary, leading to bankruptcy.

How It Works?

Many property owners think that their standard commercial insurance will suffice. Upon closer look, however, there are certain limitations to such policies which do not extend to commercial properties under a strata title. Much of the challenge in finding the right insurance policy for such properties is due to the varying activities being pursued by individual occupants in commercial complexes or mixed tenancy buildings. Commercial strata policies provide an added safety net for owners in the event of natural and man-made disasters not fully covered in a standard commercial insurance policy.

A specialized insurance policy, strata insurance underwrites commercial properties in a manner tailored to the hazards and risks involved. Its main goal is to help minimize the strata property owner’s burden of spending large amounts of money out of their own pockets. It’s a safety net which can be customized to individual needs allowing an owner to run his or her business without the worry of blowing their budget in times of damage.

Benefits of Commercial Strata Insurance

Like all other insurance policies, commercial strata insurance is deemed a wise investment for property owners by experts. Some of the notable benefits include, but are not limited to, the following:

Long-Term Safety Net
Natural calamities and disasters like earthquakes, cyclones, flooding, and irregular ocean movements are noticeably becoming more devastating to Australia. While a debate continues raging on its causes is largely focused on the onset of climate change and global warming, the safety guarantee of commercial strata insurance cannot be denied. These catastrophic events can create a hugely negative impact to property owners unless adequate strata insurance protection is in place.

Short-Term Protection
Man-made disasters like fire, theft, and other malicious acts can also create a huge gaping hole to property owners’ coffers. To gain back partial, if not all, of the financial damage incurred is quite a task. It does not only help reduce the burden of shouldering such risks involved but also provides a breathing space for property owners knowing that they have something to lean on in this time of need.

Many, if not all, insurers offering commercial strata coverage offers the following comprehensive stipulations encompassing building insurance for common areas, rental income loss, fidelity guarantee, public liability, voluntary workers personal accident, office bearers liability, machinery breakdown such as AC or lift problems, and cover for catastrophe in state emergency cases. Though widely comprehensive, a good insurer can tailor-fit a strata insurance plan for your commercial property to ensure that specific requirements are met.

Tax Benefits
Top insurance companies also offer cover to audit expenses as an additional incentive. This usually covers the fees paid to a professional advisor as required by the Australian Taxation Office and other government agencies. This means thousands of out-of-pocket expenditures off your chest.

When thinking of commercial strata insurance as a wise investment, it is important to find the right plan to perfectly suit your requirements. The key is in finding the right insurer who can ensure that such needs are met. In doing so, you do not only enjoy a risk-free property but peace of mind as well.


Want a comprehensive insurance coverage for your strata titled property? Schedule a consultation with Landlord Insurance HQ ASAP! Allow us to assist you in customizing an insurance portfolio that satisfies your requirements. Request for a quote online or feel free to call us on 1300 815 344.