Strata Insurance Requirements by State in Australia

What strata insurance requirements apply in each Australian state and territory?

Strata Insurance Requirements by State and Territory in Australia

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Strata insurance requirements in Australia vary by state and territory. This guide explains the core obligations for owners corporations, bodies corporate and strata companies, including building cover, common property, public liability and practical compliance checks.

Strata insurance requirements in Australia are set mainly by state and territory legislation. While the underlying purpose is similar across the country, the legal terms, responsible entities and practical obligations can differ depending on where the strata scheme is located.

This guide explains the main strata insurance requirements by state and territory, including who usually arranges cover, what the policy commonly needs to protect, and why public liability insurance is a key part of compliance. It is general information only and should not be treated as legal, financial or personal insurance advice. Requirements can change, and the correct cover for a scheme depends on its property type, governing legislation, by-laws, valuation, claims history and insurer criteria.

For a broader introduction to strata cover, you can also visit Insurance for Strata.

How strata insurance works across Australia

Most Australian strata and community title schemes are required to arrange insurance for shared property and risks that individual lot owners cannot properly insure on their own. The responsible body may be called an owners corporation, body corporate, strata company, strata corporation or community corporation, depending on the jurisdiction.

Although the wording differs between states and territories, strata insurance requirements usually focus on three core areas:

Building and common property insurance: cover for shared buildings, structures and common property against insured events such as fire, storm and other policy-defined risks.
Public liability insurance: cover for liability connected with injury or property damage occurring on common property or arising from the scheme's activities, subject to policy terms.
Reinstatement or replacement value: cover that reflects the cost to rebuild, repair or reinstate insured property, rather than simply the original purchase price or market value.

Many schemes also consider additional covers such as office bearers' liability, machinery breakdown, voluntary workers, fidelity guarantee, catastrophe cover or legal expenses. Some of these may be required or expected in particular circumstances, while others are optional policy features. The right mix depends on the scheme's legal obligations and risk profile.

Important limits of strata insurance

Strata insurance does not usually replace the need for personal insurance held by individual owners or tenants. A strata insurance policy commonly excludes personal contents, furniture, appliances that are not part of the insured building, personal valuables, landlord risks and tenant belongings.

Lot owners and investors should check what the strata policy covers and what remains their own responsibility. Depending on the situation, this may include contents insurance, landlord insurance, tenant insurance or cover for improvements within a lot. The boundary between lot property and common property can also differ by plan type, by-laws and state legislation.

Strata insurance requirements by state and territory

The table below provides a practical overview of the main obligations in each Australian jurisdiction. It is not a substitute for checking the current legislation or obtaining professional advice for a particular scheme.

State or territory	Responsible entity	Core insurance requirements	Practical compliance notes
New South Wales	Owners corporation	NSW strata schemes generally need insurance for the building and common property, including cover based on replacement or reinstatement value. Public liability insurance is also a key requirement.	The owners corporation should keep insurance under review, especially after building works, major repairs, changes in replacement cost or changes to common property. Some smaller two-lot schemes may have different options or exemptions if strict conditions are met.
Victoria	Owners corporation	Victorian owners corporations generally need insurance for common property and insurable buildings, plus public liability cover connected with common property and owners corporation activities.	Insurance obligations can vary depending on the type and tier of owners corporation. Valuations and adequate reinstatement cover are important, particularly for larger or more complex buildings.
Queensland	Body corporate	Queensland body corporate insurance requirements commonly include building or common property insurance and public risk insurance. The exact responsibility can differ depending on the survey plan type.	Queensland has important differences between building format plans and standard format plans. This can affect whether the body corporate insures the building structure or whether individual lot owners carry more responsibility for their own buildings.
Western Australia	Strata company	WA strata companies generally need to insure insurable assets and common property for replacement or reinstatement, and maintain appropriate liability insurance.	The strata company should review sums insured and policy scope when building costs change, common property is upgraded or new facilities are added. Strata company governance documents may also affect practical responsibilities.
South Australia	Strata corporation or community corporation	SA strata and community schemes generally need insurance for buildings and common property, as well as public liability insurance for shared areas and corporation risks.	Strata and community title arrangements may operate differently, so committees should confirm which property is a corporation responsibility and which property individual lot owners must insure.
Tasmania	Body corporate	Tasmanian strata schemes generally require insurance for common property and relevant buildings, together with public liability insurance.	Because many Tasmanian schemes are smaller, owners should not assume informal management removes insurance obligations. Records, renewal notices and evidence of cover should be kept current.
Australian Capital Territory	Owners corporation	ACT owners corporations generally need to insure buildings and common property and maintain public liability cover for owners corporation risks.	The owners corporation should consider whether the insured value reflects current rebuilding costs and whether policy arrangements match the units plan and common property responsibilities.
Northern Territory	Body corporate or corporation	NT schemes generally need insurance for shared buildings, common property and liability risks connected with the scheme.	Weather exposure, building design and location can significantly affect availability, exclusions and premiums. Committees should check policy conditions carefully, particularly for storm, cyclone, flood or maintenance-related issues.

Key differences to watch between jurisdictions

Australian strata insurance legislation is not identical across the country. The most important differences are often practical rather than obvious from the name of the insurance policy.

Different names for the responsible body

The body responsible for arranging strata insurance is not always called an owners corporation. In Queensland, it is usually a body corporate. In Western Australia, it is a strata company. In South Australia, the scheme may be managed by a strata corporation or community corporation. These differences matter because each entity operates under its own legislation and governance rules.

Different boundaries between lot property and common property

The insurance boundary can depend on the state, plan type and scheme documents. For example, some schemes require the central body to insure the building structure, while others place more responsibility on lot owners for stand-alone buildings or parts of a lot. This is particularly important in townhouse, villa, duplex and mixed-use schemes.

Different public liability requirements

Public liability insurance is a common feature of strata insurance requirements across Australia, but the required minimum amount and policy wording may differ. Committees should check the current legislative requirement in their jurisdiction and consider whether the minimum is enough for the scheme's actual risk exposure.

Different valuation and review expectations

Some jurisdictions place more emphasis on formal insurance valuations or periodic reviews. Even where a formal valuation interval is not the main issue, committees should still regularly test whether the building sum insured reflects current rebuilding costs, professional fees, demolition, debris removal and compliance costs.

Who pays for mandatory strata insurance?

Strata insurance premiums are usually paid by the owners corporation, body corporate or equivalent entity from levies collected from lot owners. Individual owners do not usually choose whether the scheme buys the mandatory policy, but they do contribute to the cost through strata levies.

The share each owner pays is commonly based on unit entitlement, lot liability or a similar allocation method under the relevant scheme rules. Special levies may be required if the scheme's funds are insufficient to pay a premium, meet an excess, fund uninsured repairs or respond to a major change in insurance cost.

If your committee is trying to understand how insurance costs may affect scheme budgets, a calculator can help with preliminary planning. You can use the strata insurance calculator as a general tool, noting that actual premiums depend on insurer assessment, property details, claims history, cover selected and market conditions.

What committees should check at renewal

Renewal is not just an administrative task. It is an opportunity to confirm that the policy still meets the scheme's legal obligations and practical risks. A committee or strata manager should consider:

whether the policy is in the correct name of the owners corporation, body corporate, strata company or corporation;
whether the insured property description matches the scheme's buildings, common property and facilities;
whether the building sum insured is based on a current and reasonable replacement or reinstatement assessment;
whether public liability cover meets the relevant jurisdiction's requirements and the scheme's risk profile;
whether any exclusions, excesses or special conditions have changed since the previous policy period;
whether recent claims, defects, maintenance issues or building works have been disclosed where required;
whether optional covers are appropriate for the scheme's circumstances; and
whether lot owners understand what the strata policy does not cover.

Common compliance risks

Many strata insurance problems arise because a scheme assumes that last year's policy will remain suitable indefinitely. Common risks include:

Underinsurance: the insured value may not keep pace with construction cost increases, professional fees or code compliance costs.
Unclear responsibility: owners may assume the strata policy covers items that are actually their own responsibility.
Policy exclusions: damage caused by poor maintenance, gradual deterioration, defects or certain weather events may be limited or excluded depending on the policy.
Late disclosure: failing to disclose known risks, claims history or building changes can affect cover or claims outcomes.
Informal decision-making: smaller schemes sometimes rely on informal arrangements that do not match their legislative obligations.

Non-compliance can lead to financial exposure for lot owners, disputes within the scheme and difficulties when making claims. Whether a claim is accepted will depend on the policy wording, the facts of the loss, disclosure, maintenance history and insurer assessment.

When professional help may be useful

Some schemes can manage straightforward renewals with the support of a strata manager. Others may need additional help from a qualified insurance broker, lawyer, valuer or building consultant. Professional assistance may be useful where:

the scheme includes commercial lots, short-stay accommodation, lifts, pools, gyms or other higher-risk facilities;
the property has defects, unresolved maintenance issues or repeated claims;
the committee is unsure whether the building sum insured is adequate;
the scheme is in a high-risk location for storm, flood, bushfire, cyclone or other natural hazards;
the insurer has applied unusual exclusions, high excesses or special conditions;
owners disagree about what the strata policy should cover; or
a major claim or liability issue has occurred.

If your scheme needs help comparing policy terms or understanding broker support, the brokers page may be a useful next step. Any recommendation or policy placement will depend on the scheme's circumstances, available insurers and broker assessment.

Practical checklist for strata insurance compliance

To keep insurance obligations on track, committees and owners corporations can use this practical checklist:

Identify the governing legislation: confirm the correct state or territory law and the legal name of the responsible entity.
Check the plan and by-laws: confirm what is common property, what is lot property and who is responsible for insuring each part.
Review the building sum insured: consider whether a professional valuation or updated replacement cost estimate is needed.
Confirm liability cover: check that public liability insurance meets current legislative requirements and practical risk needs.
Read exclusions and excesses: focus on exclusions for defects, maintenance, water damage, flood, storm, cyclone, bushfire and unoccupied areas where relevant.
Keep records: retain certificates of currency, renewal documents, valuation reports, minutes and insurer correspondence.
Communicate with owners: explain what the strata policy covers and what owners may need to insure separately.
Review after changes: update insurance after renovations, new facilities, changed use, major repairs or legislative changes.

Final thoughts

Strata insurance requirements in Australia share a common purpose: protecting shared property and managing liability risks for the benefit of all owners. However, each state and territory has its own legislation, terminology and practical rules. A policy that appears suitable in one jurisdiction may not automatically satisfy the obligations of another.

The safest approach is to understand the requirements that apply to your scheme, maintain clear records, review cover regularly and seek professional guidance where the property or legal position is complex. Strata insurance should be treated as an ongoing compliance and risk management responsibility, not just an annual renewal expense.

Published: Saturday, 6th Dec 2025
Author: Paige Estritori