The National Insurance Brokers Association (NIBA) has produced a guide to help strata committees and unit owners pick the right strata cover.

Professional Development Executive Linda Evans says the choice can be difficult.

“Insurance companies selling strata cover direct to policyholders do not, as a rule, give advice on what products are appropriate for their needs.”

She says cheaper insurance bought direct may prove a false economy if unit owners find themselves uncovered for some losses.

NIBA suggests seeking expert advice from a qualified broker, to ensure the right amount and type of cover is taken. Brokers can advise on state laws and help with claims.

Matters for unit owners to consider include the amount of excess needed and insurance for volunteers, flood, machinery, public liability and workers’ compensation. They should know whether their insurance covers specifics such as the removal of debris or professional fees, such as for architects.

A building valuation should occur every five years, the NIBA guide says.