Tailored Strata Insurance Solutions For Australian Properties

What Does Strata Insurance Cover in Australia?

• Common property: Structural elements, shared walls, roofs, foyers, lifts and car parks.
• Fixed fixtures: Built-in cupboards, floor coverings in common areas, shared plant and equipment.
• Liability protection: Public liability for injury or property damage occurring on common property.
• Additional benefits: Optional cover for catastrophe events, office bearer’s liability and loss of rent.

Strata Insurance vs Building Insurance

Many owners assume their personal building or landlord insurance replaces strata insurance, but they cover different risks.

A strata insurance policy is arranged by the owners corporation or body corporate and usually covers the building structure and common property for the entire scheme. Individual building or contents insurance applies to your specific lot, fittings and personal possessions.

Understanding these differences helps avoid gaps or duplication in cover. Explore more detailed comparisons in our learning hub on our articles library.

Strata Insurance Cost and Premium Drivers

Strata insurance cost can vary widely between buildings, even within the same suburb.

• Building sum insured, construction type and age of the property.
• Claims history for the scheme and any existing building defects.
• Location-based risks such as flood, bushfire or storm exposure.
• Excess levels, optional covers and the strata insurance providers you consider.

Use indicative tools and calculators to explore how changes in sums insured and excesses may influence premiums by visiting our calculators page.

How to File a Strata Insurance Claim

1. Notify the strata manager or committee: Report the incident as soon as possible with photos and details.
2. Confirm policy coverage: Check the strata insurance coverage, excess and any relevant exclusions.
3. Lodge and track the claim: Submit required documents, coordinate trades, and monitor progress to completion.

Strata Insurance Requirements by State

• New South Wales: Mandatory building and liability cover for strata schemes, with regular valuations recommended.
• Victoria: Most owners corporations must insure common property and public liability to prescribed minimums.
• Queensland: Community titles schemes require cover for building, common property and body corporate liability.
• Other states & territories: Similar obligations apply, with variations in detail and terminology.

Review high-level summaries and links to relevant legislation, and explore whether strata insurance is mandatory for your property on our articles page.

Selecting the Right Strata Insurance Policy

Choosing suitable strata insurance involves more than accepting your renewal notice each year.

Consider the adequacy of your building sum insured, liability limits, optional extensions and the claims service offered by different strata insurance providers. Committees may wish to seek multiple strata insurance quotes and undertake a structured strata insurance comparison to ensure the cover aligns with the building’s risk profile and budget.

Managing Premiums Without Sacrificing Cover

Rising premiums are a major concern for many schemes, but there are practical strategies to manage costs responsibly.

• Maintain the building to reduce avoidable claims and water ingress issues.
• Review excess levels to balance affordability with financial risk to owners.
• Consider risk improvements such as security, fire protection and repairs to known defects.
• Engage with a broker for targeted recommendations on insurers and policy structure.

For more ideas, case studies and updates on strata insurance legislation and market trends, visit our news and insights section on our news page.