Bendigo Bank Strata Cover: Does It Meet Standards?

Bendigo Bank’s contents insurance does not automatically include strata cover, and its standard policy is not designed to meet the specific insurance requirements of a strata scheme. If you own a unit, townhouse, or apartment, you need to check your policy documents or contact Bendigo Bank directly to see if your contents cover includes any strata-related protection. This article explains what strata cover is, what Bendigo Bank’s standard contents policy typically includes, and how to ensure you are properly protected.

What Is Strata Cover?

Strata cover, also known as strata insurance, is a type of insurance that protects the common property and shared areas of a strata scheme (such as a building of units or townhouses). It is usually arranged by the owners corporation (body corporate) and covers things like the building structure, common driveways, foyers, and shared walls. This is different from contents insurance, which covers your personal belongings inside your unit.

In most Australian states, the owners corporation is legally required to take out building insurance for the common property, but this does not extend to your personal contents. Your own contents insurance is separate and covers items like furniture, electronics, and clothing. However, some contents policies offer an optional extension for improvements and fixtures you have made to your unit (e.g., renovated kitchen or bathroom) that are not covered by the building policy.

Bendigo Bank’s Standard Contents Policy

Bendigo Bank offers contents insurance as part of its general insurance products, underwritten by a third-party insurer. The standard policy typically covers your personal belongings against events like fire, theft, storm, and accidental damage. It does not automatically include cover for the building or common property, and it does not include strata-specific features unless you add them as an optional extra.

If you live in a strata scheme, you should check your policy’s Product Disclosure Statement (PDS) to see if it includes any cover for:

• Improvements and renovations you have made to your unit.
• Fixtures and fittings that are your responsibility (e.g., a dishwasher you installed).
• Liability for damage to common property caused by you or your family.

Many standard policies do not include these, or they may only offer limited cover. You may need to ask for a specific “strata extension” or “improvements” cover.

How to Check Your Bendigo Bank Policy

To find out if your Bendigo Bank contents policy includes strata cover, follow these steps:

1. Locate your policy documents or log in to your Bendigo Bank online account.
2. Look for the Product Disclosure Statement (PDS) and any schedule or certificate of insurance.
3. Search for keywords like “strata,” “common property,” “improvements,” or “fixtures.”
4. If you cannot find the information, call Bendigo Bank’s insurance team directly and ask about strata cover.
5. Ask specifically whether the policy covers damage to common property that you are legally liable for (e.g., if you accidentally cause a fire that damages the building).

If your policy does not include strata cover, you have options: you can ask Bendigo Bank to add an extension, or you can purchase a separate strata contents policy from another insurer.

Common Misconceptions

A common misconception is that the owners corporation’s building insurance covers everything inside your unit, including your belongings. In reality, the building policy typically covers only the structure and common property. Your personal contents are almost never covered by the body corporate’s policy.

Another misconception is that “contents insurance” automatically includes cover for improvements you have made to the unit. Many policies exclude or limit cover for improvements unless you specifically declare them. For example, if you have installed a new kitchen, the standard contents policy may only cover the contents, not the built-in cabinets or benchtops. You may need to add “improvements” cover to protect those.

Also, some people assume that if they cause damage to common property (e.g., a burst pipe in your bathroom that damages the hallway), the body corporate’s insurance will cover it without any excess. In many cases, the body corporate’s insurer will claim against you or your contents insurer for the excess. A good strata contents policy can cover that excess.

How to Choose the Right Strata Contents Cover

If you find that Bendigo Bank’s standard policy does not meet your needs, you should compare policies from other insurers that specialise in strata contents. When comparing, consider:

• Coverage for improvements and renovations (up to a certain amount).
• Liability cover for damage to common property.
• Coverage for your personal belongings while they are in storage or in common areas.
• The excess amount you would need to pay if you make a claim.
• Whether the policy covers temporary accommodation if your unit becomes uninhabitable.

It is also wise to check the sum insured for your contents – make sure it is enough to replace all your belongings at today’s prices. Many people underinsure their contents, which can lead to a shortfall when they claim.

Costs and Limits

The cost of adding strata cover to your contents policy will depend on the insurer, the level of cover, and your location. Typically, adding an extension for improvements and common property liability may increase your premium by a small amount – often around 5-10% of the base premium. However, this is a general estimate; you should get a quote from Bendigo Bank or another insurer to know the exact cost.

Keep in mind that there are limits to what a contents policy will cover. For example, most policies have a maximum limit for improvements (e.g., $50,000) and may not cover items like motor vehicles or pets. Always read the PDS to understand the exclusions.

Alternatives to Bendigo Bank

If Bendigo Bank cannot provide the strata cover you need, there are other insurers in Australia that offer specialised strata contents insurance. Look for insurers that are members of the Strata Community Association or that explicitly advertise “strata contents” policies. Some general insurers also offer optional extensions that you can add to a standard contents policy.

Before switching, compare the level of cover, exclusions, and cost. It is often worth paying a little more for a policy that includes comprehensive strata cover, because the cost of repairing or replacing common property can be very high if you are found liable.

Frequently Asked Questions

Does Bendigo Bank contents insurance cover common property damage?

Generally, no. Standard contents insurance does not cover damage to common property unless you have added a specific extension. You should check your policy or contact Bendigo Bank to see if this is available.

What is the difference between strata insurance and contents insurance?

Strata insurance covers the building and common property, while contents insurance covers your personal belongings inside your unit. They are separate policies, and you typically need both if you own a strata property.

Can I add strata cover to my Bendigo Bank contents policy?

It depends on the policy. Some insurers offer optional extensions for improvements and common property liability. Contact Bendigo Bank to ask if such an extension is available for your policy.

Who is responsible for insuring the building in a strata scheme?

The owners corporation (body corporate) is responsible for taking out building insurance for the common property and the building structure. This is usually required by law in each state.

If I cause damage to common property, will my contents insurance cover the excess?

Some contents policies include cover for the excess on the body corporate’s building insurance if you are liable for damage. This is not automatic, so you need to check your policy or ask your insurer.

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