Understanding the distinction between insurance and maintenance is essential to protecting your investment, and preserving its long-term value. A proactive approach to both insurance and maintenance helps protect your property, reduce unexpected costs and optimise market value.
Strata insurance is not a maintenance plan
Strata insurance and preventative maintenance both protect your property, but they perform very different roles.
Insurance is designed to respond when sudden or unexpected damage occurs from an insured event, such as a fire, storm or escape of water. It is not intended to pay for deterioration, defects, wear and tear or damage caused by inadequate maintenance.
Understanding this distinction can help your body corporate avoid declined claims, unexpected repair costs and preventable damage.
What does strata insurance cover?
Typically, bodies corprorate are legally required to maintain a policy that covers all buildings and improvements on the site, including all units and the common property, for damage. They’re also required to insure the body corporate for public liability with respect to the common property.
Strata insurance provides a competitive and comprehensive means of meeting these obligations. Good strata insurance policies cover the units, fences, sheds and other improvements as well as the common property for damage.
Damage is defined by each insurer and varies from policy to policy, but in essence it means sudden, accidental and/or unforeseen damage such as fire, storm, water damage from burst pipes, impact damage and so on. To understand what you’re covered for, it’s important to read your own Product Disclosure Statement (PDS).
Strata insurance is not intended to cover damage that occurs due to poor maintenance or defects, or damage that has happened over a long period of time. Again, it’s important to read your PDS to learn what is excluded and for what you are responsible for.
Why maintenace matters
Maintenance issues won’t improve with time. A blocked gutter, deteriorated seal, loose roof sheet or minor leak can develop into significant damage that could affect several units.
Apart from the inconvenience and distress caused to residents, poor maintenance may result in:
repair costs that are not covered by insurance
higher premiums and excesses
denied claims
difficulty obtaining alternate insurance quotes
unexpected special levies for major repairs
deterioration in the appearance of your property reducing the market value of it.
Insurance is not a substitute for maintenance. Proactive and regular maintenance is essential for optimising the value of your property and your investment.
Prevention costs less than repair
Preventative maintenance is a cost-effective way of allowing a body corporate to identify and address risks before they become emergencies.
Regular inspections and a properly prepared long-term maintenance forecast help the body corporate understand:
what work is immedately required to prevent damage
what work will be required in the future
when that work is likely to be required
how much it is expected to cost
how much to budget for each year for the sinking fund.
A coordinated approach
Strata management, maintenance and insurance should not operate independently.
Building inspections can identify risks that may affect insurance. A capital maintenance forecast allows the body corporate to budget for work before deterioration results in damage. Claims histories identify trends that
Terrace combines strata management, insurance expertise and long-term maintenance planning. This enables us to identify risks early, assist bodies corporate to make informed decisions and advocate for clients when an insured event does occur.
Our Capital Maintenance Program converts a 15-year forecast into a practical schedule of inspections, budgets and works. It helps bodies corporate protect their buildings, control costs and reduce avoidable insurance claims.
protect your property
Good insurance provides essential financial protection. Good maintenance reduces the likelihood that you will need to rely on it.
Contact Terrace Strata Management to discuss your insurance arrangements or find out how our Capital Maintenance Program can help protect the safety, integrity and long-term value of your strata property.
Plan Ahead with Our Capital Maintenance Program
Avoid surprise costs — get your Capital Maintenance Forecast. Click below to plan ahead.
At Terrace Strata, we’re driven by values, transparency, and professionalism. We provide integrated strata management, advisory, and insurance solutions for residential, commercial, and industrial schemes. With an ethical, client-first approach, we deliver clarity, confidence, and support — every step of the way.
Knowing what you own and what is common property is important for peace of mind and for avoiding disputes, unexpected costs and confusion when it comes who pays for what. We recommend you seek advice from an expert to explain your strata plan so understand what’s yours and what’s shared. Understand Your Strata Plan with […]
Preventative maintenance is a cost-effective way of avoiding the cost and distress of events like water damage. With a long-term maintenance plan prepared by experts, you can schedule and budget for recommended upkeep to save money, reduce insurance claims and increase the value or your property. We recommend getting a trusted contractor known for quality […]
Our Capital Maintenance Program is a unique and innovative system for scheduling, budgeting for and implementing capital and preventative building maintenance to protect your property and reduce your costs. It is integral to optimising the market value, integrity and safety of your strata property.
BLOG TEMPLATE
Table of Contents
Understanding the distinction between insurance and maintenance is essential to protecting your investment, and preserving its long-term value. A proactive approach to both insurance and maintenance helps protect your property, reduce unexpected costs and optimise market value.
Strata insurance is not a maintenance plan
Strata insurance and preventative maintenance both protect your property, but they perform very different roles.
Insurance is designed to respond when sudden or unexpected damage occurs from an insured event, such as a fire, storm or escape of water. It is not intended to pay for deterioration, defects, wear and tear or damage caused by inadequate maintenance.
Understanding this distinction can help your body corporate avoid declined claims, unexpected repair costs and preventable damage.
What does strata insurance cover?
Typically, bodies corprorate are legally required to maintain a policy that covers all buildings and improvements on the site, including all units and the common property, for damage. They’re also required to insure the body corporate for public liability with respect to the common property.
Strata insurance provides a competitive and comprehensive means of meeting these obligations. Good strata insurance policies cover the units, fences, sheds and other improvements as well as the common property for damage.
Damage is defined by each insurer and varies from policy to policy, but in essence it means sudden, accidental and/or unforeseen damage such as fire, storm, water damage from burst pipes, impact damage and so on. To understand what you’re covered for, it’s important to read your own Product Disclosure Statement (PDS).
Strata insurance is not intended to cover damage that occurs due to poor maintenance or defects, or damage that has happened over a long period of time. Again, it’s important to read your PDS to learn what is excluded and for what you are responsible for.
Why maintenace matters
Maintenance issues won’t improve with time. A blocked gutter, deteriorated seal, loose roof sheet or minor leak can develop into significant damage that could affect several units.
Apart from the inconvenience and distress caused to residents, poor maintenance may result in:
Insurance is not a substitute for maintenance. Proactive and regular maintenance is essential for optimising the value of your property and your investment.
Prevention costs less than repair
Preventative maintenance is a cost-effective way of allowing a body corporate to identify and address risks before they become emergencies.
Regular inspections and a properly prepared long-term maintenance forecast help the body corporate understand:
A coordinated approach
Strata management, maintenance and insurance should not operate independently.
Building inspections can identify risks that may affect insurance. A capital maintenance forecast allows the body corporate to budget for work before deterioration results in damage. Claims histories identify trends that
Terrace combines strata management, insurance expertise and long-term maintenance planning. This enables us to identify risks early, assist bodies corporate to make informed decisions and advocate for clients when an insured event does occur.
Our Capital Maintenance Program converts a 15-year forecast into a practical schedule of inspections, budgets and works. It helps bodies corporate protect their buildings, control costs and reduce avoidable insurance claims.
protect your property
Good insurance provides essential financial protection. Good maintenance reduces the likelihood that you will need to rely on it.
Contact Terrace Strata Management to discuss your insurance arrangements or find out how our Capital Maintenance Program can help protect the safety, integrity and long-term value of your strata property.
Plan Ahead with Our Capital Maintenance Program
Avoid surprise costs — get your Capital Maintenance Forecast. Click below to plan ahead.
About Terrace Strata
At Terrace Strata, we’re driven by values, transparency, and professionalism. We provide integrated strata management, advisory, and insurance solutions for residential, commercial, and industrial schemes. With an ethical, client-first approach, we deliver clarity, confidence, and support — every step of the way.
You may be interest in
Know your strata plan
Knowing what you own and what is common property is important for peace of mind and for avoiding disputes, unexpected costs and confusion when it comes who pays for what. We recommend you seek advice from an expert to explain your strata plan so understand what’s yours and what’s shared. Understand Your Strata Plan with […]
Avoid the stress and expense of events like water damage
Preventative maintenance is a cost-effective way of avoiding the cost and distress of events like water damage. With a long-term maintenance plan prepared by experts, you can schedule and budget for recommended upkeep to save money, reduce insurance claims and increase the value or your property. We recommend getting a trusted contractor known for quality […]
Worried about a surprise special levy?
Our Capital Maintenance Program is a unique and innovative system for scheduling, budgeting for and implementing capital and preventative building maintenance to protect your property and reduce your costs. It is integral to optimising the market value, integrity and safety of your strata property.