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Insurance for Apartments
Insurance for Apartments
Written by
Tina Sendin
Edited by
Laura Crowden
Reviewed by
Natasha EtschmannCompare home and contents insurance the easy way
Save time and effort by comparing a range of home and contents insurance policies with iSelect
What type of home insurance do I need for an apartment?
Long story short
Home insurance protects your apartment against life’s curveballs
Apartment insurance comes in all shapes and sizes – strata, contents, and landlord insurance. They’re a big part of your safety net if life goes pear-shaped.
The cost of apartment insurance can vary widely
Apartment insurance premiums depend on where you live and risks like floods or bushfires.
What you pay depends on the type of cover
The average price of contents insurance purchased through iSelect is $448 a year,2Based on iSelect home insurance sales, July 2023 – June 2024 while strata insurance sits around $6,181. Things like building age and safety features can bump up the price.
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Apartment living has its own special quirks. Balcony gardening, close neighbours, and taking the dog downstairs for toilet time at the crack of dawn. These fun times aside, protecting your home and everything in it is just as important for apartment folks as those people living on a huge acreage in the country. This is where insurance comes in.
What type of home insurance do I need for an apartment?
Let’s break down this insurance jargon for our apartment dwellers. There are three types of insurance you need to know about if you rent or own an apartment: strata, contents, and landlord. Each type may or may not be relevant to you depending on whether you’re an owner occupier, a landlord, or a renter – more on that in a minute!
Strata insurance (also known as body corporate insurance)
Most apartment buildings are strata titled, which means the owners of individual apartments share ownership of common property – things like outer walls, lifts and driveways.
Owners pay regular strata fees, some of which goes toward insurance for the building, typically covering damage to shared property, building fixtures, and potentially shared contents like gym equipment. This means that you usually don’t need separate home or building insurance (the ‘home’ bit in the combined home and contents policy) for your apartment’s structure.
However, rules can vary, so it’s a good idea to confirm with your strata manager or body corporate.
Contents insurance
While strata insurance covers the apartment building itself, it doesn’t cover what’s inside your apartment. That’s where contents insurance can be very handy for both renters and owner-occupiers.
There could be unexpected events like a burst pipe or a fire that wreaks havoc inside your apartment. This type of insurance covers the goodies like your bling, furniture, TVs, appliances, and even your clothes – essentially what’s inside your place that bites the dust due to accidents or disasters.
So, if your TV decides to take an unexpected dive, contents insurance can step in to cover its repair or replacement.
Helpful tip
If you rent an apartment, contents insurance doesn’t just cover your stuff. Some policies can also provide temporary accommodation if the apartment you’re renting gets so damaged that it’s uninhabitable. Just make sure you check the policy’s product disclosure statement (PDS) if you feel like this safety net is a must-have.
Natasha Etschmann
Investor & Personal Finance Educator
What doesn’t home insurance for apartments cover?
It’s important to note that your strata or body corporate insurance won’t cover things like your internal walls, fixtures, fittings, and all the cool stuff you’ve gathered inside; that’s where contents insurance is required.
Of course, even contents insurance comes with exclusions. Some situations might not be covered, like intentional damage or theft that occurred because you forgot to lock your doors and windows.
Also, certain items might not make the cut. Some expensive items may need to be specified under a portable contents or personal effects policy. It’s like building a custom protection plan – you decide what’s in and out.
So, bottom line: it’s a good idea to be your own detective. Check those exclusions, see what’s missing, and decide if you want to add extra layers of protection.
What apartment insurance do I need if I’m a landlord?
Landlord insurance
Yes, strata insurance covers the building’s structure. But if you’re renting your apartment out, then landlord insurance can come in handy too. This type of home insurance can cover malicious damage by tenants, as well as lost income if tenants default on their rent.
First off, there’s the issue of liability. Accidents happen, and if someone gets injured in your apartment, you might be in a sticky situation. Landlord insurance covers your liability if someone takes a tumble in your rental space.
Then there’s the matter of rent. Sometimes, tenants might face tough times, and they could struggle to pay the rent or break their lease early. Landlord insurance can cover those losses. It’s like having a financial cushion, ensuring you’re not left high and dry if your tenants face difficulties.
What apartment insurance do I need if I’m a tenant?
Contents insurance
While your landlord might take care of insurance for the apartment building itself, what about your personal stuff? That’s a whole different story. If you’ve got precious belongings like your laptop, favourite guitar, or that leather jacket with the fabulous lining, you might want to think about getting a contents insurance policy.
Renters don’t need building or strata insurance
If you’re a renter who snagged a cool apartment, you don’t need to worry about insuring the building itself (meaning you can ignore both strata insurance and the “home” bit in home and contents insurance). As mentioned previously, your landlord should take care of that. It should be right there in your rental agreement, which your property manager hands over before you sign the lease – make sure to give it a read!
Additional accidental damage coverage
Here’s a heads-up about contents insurance – generally most standard policies don’t cover accidental damage. You know, the kind of mishaps like spilling coffee on your couch or accidentally knocking over your favourite vase.
So, if you’re the clumsy type (no judgment, we all have our moments) or if you just want that extra peace of mind, it might be a smart move to add accidental damage cover to your policy. With this added protection, you’re more likely covered for those everyday mishaps.
Contents insurance for share houses
If you’re sharing an apartment with your friends, there are a couple of options regarding insurance. First off, you and your housemates can team up and get a shared policy. It’s like the whole gang getting covered under one umbrella. Everyone’s listed, and you share the protection. If you’re more of a lone wolf, however, you can totally go solo and get your own policy.
Some providers will offer shared contents insurance for shared houses or apartments. It’s not your regular run-of-the-mill contents insurance – it’s customised for the unique challenges of living in a shared space. It’s got your room covered, but it usually doesn’t stretch its arms into communal areas like the kitchen or bathroom.
How much does home insurance for apartments cost?
The cost of home insurance for apartments can vary heaps depending on where you live and what you’re covering.
For instance, contents insurance usually only sets you back a few hundred dollars a year. iSelect customer data for FY2024 shows contents insurance costs an average of $448 a year.3Based on iSelect home insurance sales, July 2023 – June 2024 However, how much you’ll actually pay could vary significantly depending on how much stuff you have and where you live. If you’re in a spot prone to floods, cyclones, or bushfires, you might be paying a fair bit more.
That’s why it is always a good idea to shop around and get a few quotes to see what might work for you!
Meanwhile, the average premium paid for strata insurance across most of Australia is $6,181.4Australian Competition & Consumer Commission – Insurance monitoring December 2023 Keep in mind that the cost of strata insurance is likely being shared across multiple owners. But still, the price of strata insurance can also swing a fair bit depending on a few things, like location, construction type, and coverage.
For instance, a standard two to three storey apartment building in Australia usually costs around $2,000 to $3,000 a year to insure. But if your apartment building’s a bit older and doesn’t have up-to-date safety features, your body corp might be looking at even higher premiums because of the extra risk.
Where can I find and compare home insurance?
Looking for home, contents or landlord insurance? Look no further! At iSelect, we’ve got a variety of policies for you to choose from in the range – and you can use the iSelect comparison tool to give them a look.
Get started on comparing home and contents today!
Save time and effort by comparing a range of home and contents insurance policies with iSelect
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