The refreshed AAMI Strata Insurance PDS
At AAMI, we want to make your policy clear when you need it most. So, we’ve updated the language used in the AAMI Strata Insurance Product Disclosure Statement (PDS) to make it easier to read by incorporating plain English principles (like more descriptive headings).
A PDS is an important legal document that covers the details of the cover you’ve purchased. As it’s a legal document, it’s important you read it carefully. Know these changes relate to policies renewing on or after 24 January 2025.
We’ve also made changes to the policy. This involved altering or adding covers, conditions and exclusions, which we’ve summarised below. Given the below is just a summary, we strongly encourage you to read the PDS to understand more about what has changed.
Using our products for financial abuse is unacceptable
AAMI is committed to ensuring our products are not used for any form of financial abuse. You’ll see we have made clear our position that the use of our products for financial abuse is unacceptable.
We know sometimes your circumstances might mean you need additional support or assistance in dealing with us. If you’re comfortable, you can tell us about your situation, and we’ll work with you to arrange support.
Important things to know beforehand
We realise there may be some confusion on when and how to pay an excess. We’ve updated the PDS to clearly describe when and how we will do this.
Rest assured knowing we’ll always communicate with when you need to pay an excess or alternately, we’ll deduct the amount from any cash payment made.
What and where we cover
There are a few changes to this section of the PDS. This was done to provide more clarity around what we cover as the building, and what we don’t cover as the building.
Now, we don’t cover any building (including common property) such as any property owned by a lot owner or lot occupier or property for which a lot owner or lot occupier is legally responsible.
To see what else has changed regarding this section, go to the “What and where we cover – the basics” starting on page 21 of the PDS.
General exclusions
We want to be upfront about things we don’t cover for loss or damage under your policy. There are some new and updated exclusions in the ‘General exclusions’ section, such as:
- building works (this used to be called building extensions, alterations or renovations)
- mould and mildew
- hacking, cyber-attack, or cyber incident, and
- rust or corrosion.
These exclusions can also cover legal liability, but this isn’t always the case. Your PDS will outline when a general exclusion also applies to legal liability.
Insured events you’re covered for
There are a number of changes to the Escape of Liquid clause, and we strongly encourage you to read this section of your PDS in full.
These changes include providing cover for sudden and unexpected loss or damage caused by liquid escaping from a number of listed items – like if a fixed pipe bursts in your home.
We also now provide cover for loss or damage, caused by liquid escaping from the items listed in the PDS, that has occurred gradually when the loss or damage, that was occurring, wasn’t easily visible to a reasonable person in the circumstances.
There are also updates to the ‘We don’t cover’ section under Escape of Liquid too. Please read the new PDS to see that full scope of these changes, starting on page 55.
Additional cover that comes with your policy
There are some changes to additional cover ‘Temporary Accommodation for lot owners’. For example, we’ve stopped using the term ‘unit’ and replaced it with ‘lot’ to align with strata property standards.
Some exclusions have been added as well. These exclusions limit liability for business activities and avoid double claims under other insurance policies.
Plus, we’ve included clearer payment limits for claims. We’ve done this to provide clarity and better support lot owners during disruptions and to improve risk management around claims. There are also extensions to limits if a repair-related delay has occurred outside of your control.
Please see the PDS for more information on what’s changed.
Making a claim
Terms and words with special meanings
Some terms and words in the policy have a special meaning (definition) which applies to them. We do this to make sure the terms and words are accurate and consistent to all customers.
It’s important to read this section of the PDS because it gives the meaning which applies to those terms and words which can impact how your policy is interpreted.
There are new definitions in your PDS, including changes to existing ones such as:
We’ve updated this definition to include the word sudden.