Summerland Bank Home Contents Plus for Strata Owners

Summerland Bank’s Home Contents Plus policy for strata owners is no longer available to new customers. The product was withdrawn from sale, and existing policies have been transitioned or closed as part of a broader product review. If you are a strata owner looking for contents insurance, you will need to consider alternative providers or a standard contents policy that covers your specific needs.

Background: What Was Home Contents Plus?

Summerland Bank, a customer-owned bank based in New South Wales, offered a range of insurance products through its partnership with an underwriter. The Home Contents Plus policy was designed to cover the contents of a home, including items inside a strata unit (such as an apartment or townhouse). It typically covered furniture, electronics, clothing, and personal belongings, with optional extras like accidental damage or portable items cover. The product was marketed to both homeowners and renters, but strata owners had specific considerations because the building itself is insured by the owners corporation, not the individual owner.

Why Is It No Longer Available?

Insurance products are regularly reviewed and withdrawn for a variety of commercial reasons. Summerland Bank may have discontinued the product due to changes in reinsurance costs, a strategic decision to focus on core banking products, or because the underwriting partner ceased offering the product. The bank has not publicly detailed the exact reason, but the result is clear: the product is no longer in the active product suite. Customers who held the policy were notified of the change and given options, such as switching to an alternative policy or finding cover elsewhere.

What Should Strata Owners Do Now?

If you are a strata owner, you still need contents insurance, but you must be careful about what is and isn’t covered. The owners corporation typically insures the building structure, common areas, and sometimes fixtures like kitchen cabinets or built-in wardrobes. Your personal contents—furniture, appliances, clothing, and personal items—are your responsibility. Here are the steps to take:

• Review your current policy: if you had a Summerland Home Contents Plus policy, check its expiry date and any correspondence from the bank about renewal or cancellation.
• Assess your contents value: create a room-by-room inventory to estimate the total replacement cost. This helps you choose the right sum insured.
• Compare policies from other insurers: look for a contents-only policy or a combined building and contents policy if you own a house, but for strata, contents-only is usually sufficient.
• Check for strata-specific features: some insurers offer cover for improvements or alterations you’ve made to your unit, which may not be covered by the owners corporation’s policy.
• Consider portable items cover: if you want cover for items taken outside your home (e.g., laptop, bicycle), look for a policy that includes this as an optional extra.

How to Choose a Replacement Policy

When selecting a new contents insurance policy as a strata owner, focus on the coverage that matters most to you. Start by listing your high-value items (e.g., jewellery, electronics, art) and check the policy’s sub-limits—many policies have caps on individual items. Also, decide on the type of cover:

• Accidental damage: this covers things like spilling wine on a carpet or dropping a TV. It’s an optional extra that can be worth adding if you have expensive items.
• New-for-old replacement: most policies offer this, meaning you get the cost to replace an item with a new equivalent, rather than its depreciated value.
• Contents away from home: if you travel or take items to work, this covers them outside your home, but it’s often limited to a percentage of your sum insured.
• Frozen food cover: if you have a freezer, check if food spoilage is covered in case of a power outage.

Compare quotes from at least three insurers, and read the product disclosure statement (PDS) carefully to understand exclusions and conditions.

Common Problems Strata Owners Face

One common misconception is that the owners corporation’s insurance covers your contents. It does not—it covers the building and common property. Another issue is underinsurance: many people underestimate the value of their contents, leading to a shortfall when they claim. For example, if your contents are worth $50,000 but you only insure them for $30,000, you may only receive a partial payout. Also, be aware of the ‘average clause’ in many policies: if you underinsure by more than a certain percentage, the insurer may reduce your claim payout proportionally.

Another problem is that some contents policies exclude damage caused by water from a leaking pipe in a shared wall. In a strata building, a leak from the unit above may be covered by the owners corporation’s insurance, but damage to your own contents might not be. Check whether your policy covers water damage from any source, including from other units.

Costs of Contents Insurance for Strata Owners

The cost of contents insurance varies widely based on the sum insured, location, and level of cover. As a rough guide, a typical contents policy for a one-bedroom apartment with $30,000 cover might cost between $200 and $400 per year, but this is only an estimate. Factors that increase the premium include:

• High-risk areas (e.g., flood or bushfire zones)
• Adding accidental damage cover
• High-value items that need extra cover
• Excess choices (a lower excess means a higher premium)

To save money, consider increasing your excess (the amount you pay towards a claim), but only to a level you can afford. Also, some insurers offer discounts for buying online or for bundling with other policies, but always compare the total cost and coverage.

Alternatives to Summerland Home Contents Plus

While Summerland Bank no longer offers this product, many other insurers provide contents insurance that suits strata owners. These include traditional insurers, as well as specialist providers that offer policies tailored to apartment dwellers. When comparing, look for the following features that are particularly relevant to strata living:

• Cover for improvements and alterations (e.g., if you’ve renovated your kitchen or bathroom)
• Cover for damage caused by a burst pipe in a shared wall
• Cover for temporary accommodation if your unit becomes uninhabitable (though this may be covered by the owners corporation’s policy)
• Liability cover for damage you cause to common property or other units (though this is often included in the owners corporation’s policy, it’s worth checking)

You can also consider using an insurance broker to help you find a policy, especially if you have unusual circumstances. However, always read the PDS before purchasing.

Frequently Asked Questions

Can I still buy a Summerland Bank Home Contents Plus policy?
No, the product has been discontinued. New sales are not available, and existing policies are being phased out. You will need to find an alternative insurer.

I have an existing policy—what happens to it?
Summerland Bank has notified affected customers. Typically, you will be given notice before renewal, and you may be offered a transition to a similar product or a referral to another insurer. Check your correspondence or contact the bank directly.

Is contents insurance mandatory for strata owners?
No, it is not legally required, but it is strongly recommended. Your personal belongings are not covered by the owners corporation’s building insurance, so without contents insurance, you would have to pay to replace them yourself if they are damaged or stolen.

Does the owners corporation’s insurance cover my contents?
No, it only covers the building structure and common property. Your personal contents are your responsibility.

Can I get contents insurance if I rent out my strata unit?
Yes, but you should look for landlord contents insurance, which covers items you provide (e.g., furniture, appliances) and may include liability cover. If the unit is tenanted, your tenant’s personal belongings are not covered by your policy—they need their own.

What is the difference between ‘sum insured’ and ‘replacement value’?
The sum insured is the maximum amount the insurer will pay for a claim. Replacement value is the cost to replace your items with new equivalents at today’s prices. You should set your sum insured to the total replacement value of all your contents.

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