Non-Strata Insurance

If you’re a landlord in Australia, you’re most likely aware of the importance of protecting your investments with insurance. But what if your property isn’t a strata unit? 

Many Australians are left scratching their heads when insuring non-strata unit blocks. The traditional insurance market largely ignores this niche, leaving many non-strata landlords with inadequate coverage or overpriced commercial insurance packages.

At Duo Insurance, we’re committed to simplifying the process and connecting you to your property’s most suitable and pocket-friendly non-strata insurance options.

The Specifics of Non-Strata Insurance in Australia

When it comes to residential unit blocks in Australia, a majority fall under the strata property category. This means they’re part of a shared building network, including common areas such as stairwells, garages, and roofs – collectively managed by the strata company.

But what about non-strata properties? These unique assets have largely slipped under the radar in the insurance market. 

Non-strata insurance cover is designed to protect unit blocks that a strata company doesn’t manage. These could be any residential properties, from duplexes to full-blown apartment blocks, that don’t fall under a strata plan.

This segment, however, tends to be overlooked in the building insurance world – resulting in first, incorrect coverage through single-tenant landlord policies, and second – costly commercial insurance packages. 

The problem is that these ‘blanket’ policies often do not cater to the specific needs of non-strata property owners. They may be expensive or provide inadequate coverage, burdening the owner with unnecessary financial strain or uncertainty.

That’s exactly why our team at Duo Insurance offers a specialised option for landlords needing non-strata insurance coverage.

Why Non-Strata Is the Way to Go

If you’re a landlord in Australia, you may be familiar with the intricacies of strata insurance. Fewer are aware of non-strata insurance and its benefits, especially if you own a block of units that isn’t strata.

On the Australian property market, nearly all residential unit blocks are either strata or not. And just as you would expect, a specialised insurance market has surfaced to accommodate the needs of these structures. But, non-strata unit blocks tend to slip beneath the industry’s radar.

This often leaves landlords in a precarious position as these non-strata unit blocks have inappropriate insurance. Either they’re covered under a single-tenant landlord policy, which may not sufficiently cater to the needs of a unit block, or find themselves dishing out more money than necessary for an expensive commercial insurance package.

So, what’s the solution?

The Problem

If you’re a landlord facing this dilemma, Duo Insurance might have the answers you want. 

We’ve recently had the pleasure of assisting a client who found themselves overpaying for their insurance; they were paying an incredible $6,500 for a property with a value of $1.75 million. However, with our help, they were able to reduce this hefty charge to a far more manageable $5,500. 

And that’s not all, we were also able to enhance their loss of rent coverage to an impressive 15% of the building’s sum insured value. This gave the owner the peace of mind of not worrying about adjusting this figure again.

The Outcome

  • Savings: By switching a client who was paying $6,500 for a property valued at $1.75 million, we reduced their insurance cost to a considerable $5,000. The right insurance policy makes a world of difference to your wallet.
  • Specialist Coverage: Every residence is different, and yours should be treated as such. Our non-strata insurance policies are specifically designed for residential blocks of units that aren’t strata, catering to their unique risks and needs.
  • Enhanced Loss of Rent Coverage: We don’t just provide monetary savings, but also peace of mind. We boosted a client’s loss of rent coverage to 15% of the building’s sum insured value. You’ll never have to fret about updating this figure again, we’ve got it covered.
  • Effortless Process: Insurance can be daunting, and we understand that. At Duo Insurance, we’ve simplified the steps to ensure an easy, hitch-free experience. Breeze through your insurance dealings while you focus on what’s essential – running your properties.
  • Personal Attention: Partner with Duo Insurance, and you’ll work one-on-one with an insurance expert who understands your unique needs and can tailor your insurance to the last detail.

Save Money Now

Still need some assistance in navigating your way around non-strata insurance? The team at Duo Insurance is here to help. Reach out to us today!

Contact us for a quote or to get more guidance on how this form of landlord insurance could be the perfect fit for you.

Get a Quote Now

Frequently Asked Questions

  • What is the difference between strata and non-strata insurance?

    Strata and non-strata insurance fundamentally differ in terms of the properties they cover. Strata insurance primarily covers buildings subdivided into units, apartments or townhouses with multiple owners, and common property areas governed by strata management or a corporate body. This kind of insurance typically includes coverage for damages to the building and commonly shared areas like gardens, lifts, and pools. 

    On the other hand, non-strata insurance covers blocks of units owned by a single entity with no strata title, strata manager or body corporate.

    This type of insurance handles risks of buildings where the landlord is solely responsible for the legal liability of the entire block. It covers the building, property owner’s liability, and loss of rent. The unique aspect of non-strata insurance is that it suits the needs of single-owner blocks not covered by other specific insurance products.

  • What are the benefits of non-strata cover building insurance?

    Non-strata insurance can provide a range of benefits for landlords, particularly those who own a block of residential units that isn’t under the strata scheme. 

    Just as a starter, it’s custom-designed to cater to the unique needs of non-strata properties, ensuring a more tailored fit for coverage. 

    • Firstly, it offers a cost-effective alternative to expensive commercial packages. This was demonstrated in a recent case where a client’s rate dropped from $6,500 to $5,500 for a $1.75 million property.
    • Secondly, with non-strata insurance, there’s an enhanced loss of rent coverage for landlords, usually up to 15% of the building’s value. The benefit? It gives you peace of mind knowing that you’re protected from potential loss of rental income.
    • Thirdly, it addresses the issue of incorrect coverage often seen with single-tenant landlord policies. For multi-unit landlords, this is no small matter.
    • Finally, it fills a significant gap in the market, as many insurers largely overlook non-strata blocks, leaving landlords with inadequate coverage options.

    In a nutshell, non-strata insurance takes a more personalised approach to protection. That means you get the assurance that comes with having an insurance policy crafted with your specific needs in mind.

  • What are the common mistakes landlords make with non-strata insurance?

    One of the biggest errors is treating their non-strata property as if it were a single-tenant property. They end up purchasing a single-tenant landlord policy. This policy often needs more vital covers and fails to compensate for possible risks of owning a block of units. 

    Another frequent mistake is choosing an expensive commercial insurance package. Although it might seem like the logical choice regarding the comprehensiveness of coverage, commercial insurance rarely offers value for money when discussing blocks of units. 

    Many landlords also frequently need to pay more attention to the importance of accurate property valuation and subsequent updating of this valuation. If you don’t update your property valuation, you could be left without adequate insurance coverage during a claim, leading to potential financial losses.

  • How can non-strata insurance save money for landlords?

    Non-strata insurance can save landlords significant money by accurately aligning the cover to the specific risks associated with individually-owned properties. By leaving the domain of broad-brush strata policies, you can avoid paying for coverage you don’t need and enjoy an appropriately tailored, cost-effective policy. 

    Consider the example of a client initially paying $6,500 on insurance for a $1.75 million property. With the switch to non-strata insurance, the client dramatically reduced their costs to just $5,500 – a significant saving. 

    This solution also enhanced their loss of rent coverage to an impressive 15% of the building’s insured value. This kind of savings is typical in transitioning from strata or commercial packages to a non-strata policy. 

  • What is the process of applying for non-strata insurance with Duo Insurance?

    Applying for non-strata insurance with Duo Insurance is a straightforward process, designed to offer convenience that aligns with your busy schedule as a landlord. The first step is to contact us through a phone call or by filling out the contact form on our website. You must provide some background information about your unit block to get started. 

    Once we have these details, one of our experienced insurance advisors will assess your situation and discuss the insurance options available to meet your specific needs. 

    We’ll set it up for you once you’re completely satisfied with the proposed plan. Remember that we’re here to cater to your needs, answer any questions, and provide you with all the necessary information. Consider us as your insurance guide – safely navigating this vital process.

  • What are the risks associated with not having proper non-strata insurance?

    Non-strata insurance is crucial for landlords of non-strata residential buildings in Australia who want to mitigate potential financial risks. With proper coverage, landlords may have the correct insurance, which can lead to heavy financial losses. 

    Often, these landlords end up with a single-tenant landlord policy that fails to cover the full value of all the units in the block. In other instances, landlords may be relegated to an expensive commercial insurance package, which often includes unnecessary coverages for residential blocks. 

    Lack of proper non-strata insurance makes it easier for landlords to manage unexpected damages or losses due to fires, floods, theft, or tenant misconduct. The out-of-pocket cost for such incidents can be steep and significantly impact the financial stability of the landlord. 

    Without coverage for loss of rent, landlords must bear the brunt if a tenant cannot pay rent. This could lead to severe impacts on their cash flow.