Fergusons Insurance Brokers

39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

Common Area Liability

Residential and Commercial Strata Polices differ from household and commercial package insurance policies as they offer common area liability.

Common area is the shared land that has been subjected to subdivision which often includes common property such as driveways, gardens, storage areas, pools, stairways and elevators.

Common area liability indemnifies the owner’s corporation as owner of the insured property and common area for sums they become legally liable to pay for personal injury &/or property damage arising out of an occurrence that happens at the owner’s corporation site.

An owner’s corporation should take out and maintain common area liability insurance cover of no less than $10 million (as set out by Australian Legislation), but in view of ever increasing awards made by the courts, higher limits, such as $20 million should be considered.

If you own a unit in a shared strata complex, and you are generally concerned that there is no common area liability in place, you should speak to one of the Fergusons account executives today for some expert obligation free advice.