GIO Platinum Strata Contents Cover: What It Means

GIO Platinum strata insurance is a comprehensive policy for owners corporations (bodies corporate) in Australia. The “contents cover” listing within it specifies the insured items that are covered under the policy, typically including common property contents such as carpets, curtains, built-in appliances, and other fixtures not covered by the building insurance. This article explains what that listing means for strata owners, what it typically includes, and how to read it correctly.

Formula

The calculator above estimates a strata insurance premium based on the building and contents sum insured and a premium rate. The formula is:

Total Premium = (Building Sum Insured + Contents Sum Insured) × Premium Rate

Where:

• Building Sum Insured (t) – the replacement value of the building structure, in AUD.
• Contents Sum Insured (c) – the replacement value of the common property contents, in AUD.
• Premium Rate (p) – the annual rate per $100 of insured value, expressed as a percentage (e.g., 0.15 means 0.15%).

This is a simplified model – actual premiums depend on many factors including location, claims history, and excess levels.

Worked Example

Using the default values from the calculator:

• Building sum insured = $500,000
• Contents sum insured = $100,000
• Premium rate = 0.15%

Step 1: Add the two sums insured: $500,000 + $100,000 = $600,000

Step 2: Multiply by the premium rate: $600,000 × 0.15 / 100 = $900

The estimated annual premium is $900.00.

Background: What is GIO Platinum Strata Insurance?

GIO (General Insurance Office) is a well-known Australian insurer offering strata insurance products. Platinum is their top-tier strata policy, designed to provide broader coverage than standard policies. For owners corporations, this insurance covers the building and common property, but the “contents cover” is a distinct section that lists what is insured beyond the structure itself.

Strata insurance is a legal requirement for owners corporations in most Australian states. It protects the collective assets of the building – the structure, common areas, and shared contents. The contents cover listing is crucial because it defines exactly what items are protected if damaged by fire, storm, theft, or other insured events.

What Does the Contents Cover Listing Typically Include?

The contents cover listing in a GIO Platinum policy usually includes items that are not part of the building fabric but are owned by the owners corporation. Common examples:

• Carpets and floor coverings in common areas (hallways, stairwells, foyers)
• Curtains, blinds, and window treatments
• Built-in kitchen appliances (ovens, dishwashers) in common areas or in units if they are owned by the corporation
• Hot water systems (if not considered part of the building)
• Air conditioning units (if they serve common areas)
• Lighting fixtures and ceiling fans
• Garden equipment and tools used for common grounds
• Furniture in common areas (lounge chairs, tables in foyers)
• Safety equipment such as fire extinguishers and smoke detectors
• Mailboxes and external signage

It is important to note that the listing does not cover individual unit owners’ personal belongings – those require a separate contents policy. The strata contents cover is solely for items owned by the owners corporation.

How to Read the Contents Cover Listing

The listing is typically presented as a schedule or a table in the policy document. It will show:

• The sum insured for contents (a dollar amount)
• A description of the items covered (either as a list or as a general category)
• Any exclusions or sub-limits (e.g., a maximum amount for a single item)
• The excess (deductible) that applies to claims

For example, the listing might say “Contents – $100,000” and then in the fine print specify that each individual item is limited to $5,000 unless separately listed. This is a common feature to avoid underinsurance of high-value items.

Common Problems and Misconceptions

One frequent misconception is that strata contents cover automatically includes everything inside each unit. That is not the case. The policy covers only items that are the responsibility of the owners corporation. If a unit owner’s personal furniture is damaged, they must claim on their own contents insurance.

Another common problem is underinsurance. Many owners corporations underestimate the replacement value of their contents, leading to a shortfall when a claim occurs. It is advisable to conduct a professional valuation of common property contents every few years.

Also, some items may be excluded from the standard listing, such as motor vehicles, money, or jewellery. If the corporation owns such items, they may need to be separately insured or listed as an extension.

How to Choose the Right Contents Cover Amount

Choosing the correct sum insured for contents is critical. Here are steps to guide you:

1. Create an inventory of all common property contents.
2. Estimate the replacement cost of each item (not the purchase price, but what it would cost to replace today).
3. Add a margin for inflation and potential cost increases (typically 10-20%).
4. Consider any high-value items that may need separate listing.
5. Review the amount annually and adjust as needed.

If you are unsure, a professional valuer or insurance broker can help. Remember, underinsurance can be financially devastating in the event of a major claim.

Costs and Premium Factors

The cost of GIO Platinum strata insurance depends on several factors beyond the contents sum insured:

• Building location (flood, bushfire, and crime risk)
• Building age and construction materials
• Claims history of the owners corporation
• Excess level chosen (higher excess lowers premium)
• Additional covers (e.g., machinery breakdown, public liability)

Premiums are typically paid annually by the owners corporation and are funded through strata levies. The contents cover portion is usually a small fraction of the total premium, but it is essential for protecting shared assets.

Alternatives and Comparisons

GIO is not the only insurer offering strata insurance. Other major Australian insurers include Allianz, CGU, and QBE. When comparing policies, look at:

• The breadth of the contents cover listing (what is included vs. excluded)
• Sub-limits for specific items
• The excess structure
• Claim handling reputation
• Additional benefits like loss of rent or legal liability

GIO Platinum is often marketed as a premium product with higher limits and fewer exclusions, but it may come at a higher cost. Always read the Product Disclosure Statement (PDS) carefully.

Frequently Asked Questions

Does GIO Platinum strata contents cover my personal belongings in my unit?

No. The strata contents cover only applies to items owned by the owners corporation, such as common area furniture, carpets, and appliances. Your personal belongings (furniture, electronics, clothing) are not covered and require your own contents insurance policy.

What is the difference between building and contents cover in strata insurance?

Building cover protects the physical structure – walls, roof, floors, and permanent fixtures. Contents cover protects moveable items that are not part of the structure but are owned by the owners corporation, such as carpets, curtains, and shared appliances. Both are typically included in a strata policy but with separate sum insured amounts.

Can I increase the contents sum insured after the policy starts?

Yes, you can usually request an increase mid-policy, but the premium will be adjusted accordingly. It is better to review your sum insured annually to ensure it remains adequate.

Are there any items that are automatically excluded from the contents cover?

Yes, typical exclusions include money, securities, motor vehicles, and items of high value like artwork or jewellery unless they are specifically listed. Also, items that are part of the building structure (e.g., plumbing pipes) are covered under building insurance, not contents.

How do I know if my owners corporation has the right contents cover?

Review the current policy schedule and compare the contents sum insured with a recent inventory of common property items. If the sum seems too low or you have acquired new items, contact your strata manager or insurer to update the cover.

Does the contents cover include damage caused by tenants?

Generally, damage caused by tenants is not covered under strata insurance – it is the responsibility of the tenant or the unit owner. The contents cover is for accidental or insured events like fire, storm, or theft, not for intentional damage or wear and tear.

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in t | Building sum insured | AUD | 500000 | 0
in c | Contents sum insured | AUD | 100000 | 0
in p | Premium rate | % | 0.15 | 0 | 100
out total | Total annual premium | AUD | (t + c) * p / 100 | 2