Insurance and apartment living

Whether you’re an apartment renter or owner, insurance may be worth considering to help you protect what matters most; but it’s no one-size-fits-all solution. Here, we outline the different types available and who it’s intended for. But remember, this is a general guide only, so be sure to consider your own wants, needs and circumstances as you read through. 

Who can buy it: owners living in the apartment they bought, or tenants living in a rental.

Why it exists: to cover what it would cost to repair or replace the things you keep inside the apartment you’re living in, if they were damaged or destroyed as a result of an insured event, such as a fire, storm, or theft.

What it can cover: contents insurance can cover all sorts of things, such as:

• furniture
• rugs and carpets
• white goods (washing machine, dryers, fridges)
• clothes and jewellery 
• and more.

Contents insurance can also help cover things like food spoilage if your fridge stops working after a policy-listed event. 

How to get it: the simplest method is to start a quote online.

Who can buy it: apartment owners who are members of an owner's corporation (body corporate).

Why it exists: strata insurance (also known as residential strata insurance or body corporate insurance) helps protect common property in strata-managed complexes and properties. This provides cover for areas that are shared amongst title owners and residents, such as:

• building fixtures
• lifts and carparks
• shared recreation areas
• swimming pools and gyms
• outdoor furniture and barbeque facilities.

How to get it: Strata insurance is usually arranged by a strata company or building manager. If you’re in a boutique complex, say with no more than 4 or 5 apartments, then residential strata insurance may be taken out by the owner's corporation.

Who can buy it: owners renting out their apartment to tenants.

Why it exists: to provide a level of financial protection against certain things going wrong in your apartment while others live in it.

What it can cover: as a landlord, you may have specific concerns about protecting permanent fixtures and furnishings inside your leased apartment, such as any kitchen cabinets, the bathroom vanity or washer/dryer appliances you leave for your tenants to use. This is where landlord insurance can help.

Landlord insurance can also help cover things like: 

• loss of rental income
• tenant damage or theft
• replacement locks and keys.

Keep in mind that there can be many different variations on what's covered by landlord insurance, depending on whether you have additional benefits added. Be sure to check the Product Disclosure Statement (PDS) for specifics on what is and isn’t covered, so if you ever need to make a claim, there won’t be any surprises.

If you’re interested in a policy from NRMA Insurance and need more information, visit our contact page for ways to get in touch and choose the option that best suits your time. We’ll be happy to help.