NSW Strata Insurance Brokers, Owners Corporations, Strata Committees
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Please note we are unable to assist with stand-alone Liability for common property
How NSW Strata Insurance Works
In New South Wales, strata insurance is building and liability cover arranged in the name of the Owners Corporation on behalf of all lot owners in the scheme. It protects the shared structure, common property, and communal infrastructure against physical loss and legal liability. It is not optional. Under the Strata Schemes Management Act 2015, every Owners Corporation in NSW is legally required to hold this cover for the life of the scheme.
The policy covers what is collectively owned: the building fabric, common areas, shared systems, and the legal liability that comes with managing those spaces. It does not cover a lot owner’s personal contents, private improvements, or individual liability within their lot. Those require a separate cover arranged by the lot owner.
New South Wales has one of the largest concentrations of strata-titled property in Australia. From high-density residential towers in Sydney and Parramatta to smaller townhouse schemes along the coast, the range of strata structures across the state is substantial. Scheme size, building age, construction type, and the presence of commercial lots all influence what an appropriate policy looks like. A standard off-the-shelf product rarely captures the full picture.
Coverscope's NSW Strata Insurance Brokers
Coverscope’s qualified brokers have been arranging strata insurance for over 25 years. As a Steadfast member broker, we have access to exclusive strata products and insurer facilities not available through retail channels. That means your NSW scheme has access to broader coverage options, specialist insurers, and a broker who advocates for the scheme at every stage – placement, renewal, and when a claim needs to be lodged.
NSW Strata Insurance Law: What Owners Corporations Must Hold
Strata insurance is compulsory in New South Wales under the Strata Schemes Management Act 2015. The obligations are set out in Part 9 of the Act and the Strata Schemes Management Regulation 2016.
| NSW | |
|---|---|
| Governing entity | Owners Corporation |
| Legislation | Strata Schemes Management Act 2015 |
| Minimum public liability | $20 million per event |
The $20 million minimum is set by Regulation 40 of the Strata Schemes Management Regulation 2016. Section 164 of the Act establishes $10 million as the legislative floor, but the Regulation raises the operative minimum to $20 million for all NSW schemes.
Beyond the minimum, NSW has two additional mandatory insurance requirements that do not apply in most other states.
Voluntary workers’ insurance is compulsory under Section 164. It provides cover for unpaid individuals, typically strata committee members, who sustain a personal injury while carrying out work on behalf of the Owners Corporation. Because they are not paid employees, they fall outside the scope of a standard workers’ compensation policy.
When a strata managing agent arranges insurance on behalf of the Owners Corporation, at least three quotations from different providers must be obtained and presented under Section 166. If fewer than three are available, written reasons must be provided. From February 2025, additional restrictions under the Strata Managing Agents Legislation Amendment Act 2024 limit the circumstances in which a strata manager can receive insurance commissions, improving transparency for NSW owners’ corporations.
Meeting the legislative minimum is not the same as being adequately protected. Our qualified brokers can assess whether your scheme’s cover addresses the risks that sit beyond what the law requires.
Who Coverscope Works With Across NSW
Coverscope arranges strata insurance for a wide range of schemes and clients throughout New South Wales:
- Owners Corporations and strata committees managing residential and mixed-use schemes, from two-lot duplexes to large residential high-rises across Sydney and beyond
- Strata managers seeking access to competitive insurer markets and dependable broker support at renewal
- Self-managed strata committees that handle the insurance process directly without an appointed strata manager, including smaller schemes where committee members take on this responsibility themselves
- Property investors holding strata lots who need clarity on how the scheme’s strata policy interacts with their landlord insurance obligations
- Commercial strata owners across NSW, including office buildings, retail complexes, and industrial strata with more complex liability and property profiles
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What a NSW Strata Policy Can Cover
A strata insurance policy arranged through Coverscope can provide cover for a broad range of building and liability risks. What is included depends on the insurer, the policy wording, and the specific characteristics of your scheme. This is why having a broker with direct market access and knowledge of NSW legislative requirements makes a material difference.
Building and Common Property
Cover can be provided for physical loss or damage to the building and common property from a defined insured event, including fire, storm, flood, lightning, earthquake, explosion, impact, theft, vandalism, escape of liquid, and accidental damage.
Under Section 161 of the Strata Schemes Management Act 2015, the building sum insured must reflect the full cost of reinstating and replacing the structure to an equivalent condition. This includes demolition, debris removal, and professional fees such as architect and surveyor costs. It is not the market value of the property or the price paid to purchase it.
Construction costs across NSW have risen sharply over recent years. A building valued on figures that are several years old may be significantly underinsured at the time a claim is lodged. Most industry bodies recommend an independent professional valuation every three to five years. Coverscope’s qualified brokers can help identify when a valuation is overdue and ensure the sum insured reflects current reinstatement costs at each renewal.
Public Liability for Common Property
Cover can be provided for the Owners Corporation’s legal liability for personal injury or property damage suffered by third parties on common property, including visitors, tradespeople, and guests of lot owners. The mandatory minimum in NSW is $20 million per event under Regulation 40 of the Strata Schemes Management Regulation 2016.
For schemes with higher pedestrian traffic, commercial lots, or elevated liability exposure, confirming whether the standard limit is appropriate for your specific risk profile is a conversation worth having with our brokers.
Loss of Rent or Temporary Accommodation
If a lot within the scheme becomes uninhabitable due to an insured event, this cover can provide for loss of rent to an owner-investor or temporary accommodation costs for an owner-occupier during the period the property is uninhabitable. The coverage period and limit depend on the policy wording.
Office Bearers' Liability
Strata committee members in NSW take on genuine legal responsibilities in managing the scheme. If an allegation of a wrongful act, error, or omission arises from their decisions, Office Bearers’ Liability Insurance can provide cover for defence costs and any damages awarded. This is a separate cover to public liability and protects the individuals on the committee, not the building itself.
Fidelity Guarantee
Cover for fraudulent misappropriation of scheme funds by an officer of the Owners Corporation or an appointed strata manager. If a person with authority over the scheme’s finances acts dishonestly, this cover responds. Strongly recommended for any NSW scheme where a strata manager or committee has access to scheme funds.
Machinery Breakdown
Modern strata complexes in NSW depend on shared mechanical and electrical systems. Cover for machinery breakdown can provide protection for the cost of repairing or replacing failed equipment, including lifts, HVAC systems, fire pumps, electric gates, pool pumps, and building management systems. An unexpected failure in a large residential scheme can result in significant unbudgeted costs falling directly on the levy fund.
Voluntary Workers
Mandatory in NSW under Section 164. Provides cover for personal injury sustained by unpaid individuals carrying out work on behalf of the Owners Corporation, including strata committee members acting in a voluntary capacity.
Government Audit Costs and Legal Expenses
Cover may be available for reasonable costs incurred in responding to a government audit of the scheme’s financial records, or specific legal expenses arising from covered disputes under the policy wording. Scope and availability vary by policy.
Catastrophe Cover
Following a declared natural disaster, building reinstatement costs often rise sharply due to increased demand for trades and materials. Catastrophe Cover provides an additional sum above the standard building limit for use following a declared catastrophe event, helping protect the scheme against underinsurance at precisely the time rebuilding costs are elevated.
Lot Owners' Improvements
Privately funded improvements made by individual lot owners, such as renovated kitchens, upgraded bathrooms, or custom flooring, are not automatically covered under the standard strata policy. The standard policy insures the building in its originally constructed condition. Lot Owners’ Fixtures and Improvements cover addresses this gap for schemes where individual lot upgrades are material to the building’s reinstatement value.
Arrange Your NSW Strata Insurance Quote Today
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Coverscope’s qualified brokers arrange strata insurance for Owners Corporations across New South Wales.
Find The Right Cover
Complete the form to request a QUOTE. Call us at 1300 900 207 for an immediate response.
What a NSW Strata Policy Does Not Cover
Transparency about exclusions is as important as any list of inclusions. Understanding what the strata policy does not cover helps lot owners make informed decisions about their own personal insurance.
Standard NSW strata insurance policies do not cover:
- Personal contents inside individual lots, including furniture, appliances, clothing, and electronics owned by lot owners or tenants
- Loose floor coverings and carpets within a lot, unless specifically noted in the policy wording
- Motor vehicles, motorbikes, and bicycles, even if stored within a common-property car park
- Renovations or structural alterations carried out by individual lot owners, unless Lot Owners’ Improvements cover has been added to the policy
- Wear and tear, gradual deterioration, and deferred maintenance. Insurance responds to sudden and unforeseen events, not cumulative upkeep failures
- Building defects and faulty workmanship. Construction defects are a matter between the Owners Corporation and the builder, and are not covered under the strata insurance policy
- Intentional damage caused by an owner, occupant, or their guests
- An individual lot owner’s personal legal liability as a defendant, which requires a separate contents or landlord policy held in the lot owner’s own name
Lot owners should not assume the strata policy covers everything within or attached to their property. A qualified insurance broker can help identify where a personal contents policy or landlord insurance is appropriate alongside the scheme’s strata cover.
NSW Strata Claims: What to Expect From Coverscope
When something goes wrong at an NSW strata property, the claims process can be demanding. Multiple parties, competing assessments of responsibility between lot owners and the Owners Corporation, and the pressure of displaced residents all add complexity that a generic insurer call centre is poorly equipped to manage.
Coverscope takes ownership of the claims process on behalf of the scheme. Our qualified brokers lodge the claim, manage communication with the insurer, and work to coordinate trades and repairs where required. The goal at every stage is to achieve the right outcome for the scheme and to keep committees and strata managers informed throughout.
Why NSW Owners Corporations Use a Strata Insurance Broker
Strata insurance in NSW can be purchased directly from an insurer or underwriting agency, but the difference between a direct policy and one arranged through a qualified broker extends well beyond price.
As a Steadfast member broker, Coverscope has access to exclusive strata policy wordings and insurer facilities not available in the retail market. In practical terms, that means broader coverage options, access to specialist strata insurers, and the ability to negotiate on behalf of the scheme.
NSW strata legislation is also regularly amended. The most recent changes under the Strata Managing Agents Legislation Amendment Act 2024, which took effect in stages from November 2024 and February 2025, altered the obligations around insurance commission disclosure and introduced new enforcement powers for NSW Fair Trading. Understanding how those changes affect your scheme’s insurance arrangements at renewal requires someone who follows legislative developments as a matter of course.
Our qualified brokers advocate for the scheme, not the insurer – at placement, at renewal, and when a claim needs to be managed. That is what Coverscope’s qualified brokers bring to each NSW scheme they work with.
Get an NSW Strata Insurance Quote
Coverscope arranges strata insurance for Owners Corporations in every NSW postcode. Our qualified brokers are based on the Gold Coast and operate nationally, with a sound understanding of the legislative requirements and risk profiles across New South Wales, including older building stock in Sydney’s inner suburbs, where reinstatement costs and heritage constraints can complicate coverage.
Whether your scheme is in Sydney, Newcastle, Wollongong, Parramatta, or regional NSW, our qualified brokers can arrange cover that meets your state’s specific legislative requirements and reflects your building’s actual risk profile.
Contact our strata insurance team today. Whether you are looking for a new quote, a policy review, or help with a claim, we are here to support your scheme.
Contact our strata insurance team today. Whether you’re looking for a new quote, a policy review or help with a claim, we’re here to support your property.
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PO Box 7005, Mount Crosby QLD 4306
Our team continues to work remotely but you are welcome to arrange an appointment with one of our consultants.
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What is the minimum public liability for a NSW strata scheme?
The minimum is $20 million per event, set by Regulation 40 of the Strata Schemes Management Regulation 2016. Section 164 of the Strata Schemes Management Act 2015 sets $10 million as the legislative floor, but the current regulation raises the operative minimum to $20 million for all NSW schemes regardless of size. Most strata policies include $20 million as a standard inclusion.
Is voluntary workers insurance compulsory in NSW?
Yes. Voluntary workers insurance is a mandatory component of strata insurance in New South Wales under Section 164 of the Strata Schemes Management Act 2015. It provides cover for personal injury sustained by unpaid individuals carrying out work on behalf of the Owners Corporation. This is one of two mandatory inclusions specific to NSW that do not apply in most other states. The other is the three-quotation requirement when a strata manager arranges insurance.
What is the three-quote rule for NSW strata insurance?
Under Section 166 of the Strata Schemes Management Act 2015, a strata managing agent who arranges insurance on behalf of the Owners Corporation must obtain at least three quotations from different providers. If fewer than three are available, written reasons must be provided. This requirement does not apply when the Owners Corporation arranges insurance directly through a licensed insurance broker rather than through the strata manager.
How do I know if my NSW strata building is adequately insured?
The building sum insured must reflect the full cost of reinstating and replacing the building to an equivalent condition, as required by Section 161 of the Strata Schemes Management Act 2015. This is not the same as the property’s market value or purchase price. Given the increase in construction costs across NSW in recent years, a building insured on figures that are several years old may be materially underinsured. Most industry bodies recommend an independent professional building valuation every three to five years. A qualified broker can help determine when a valuation is due.
What changed for NSW strata insurance in 2025?
The Strata Managing Agents Legislation Amendment Act 2024 introduced reforms in two stages: November 2024, which brought higher penalties and strengthened enforcement powers for NSW Fair Trading, and February 2025, which introduced new transparency obligations and restrictions on insurance commissions for strata managing agents. Strata managers now face enhanced disclosure requirements and, in certain arrangements where the Owners Corporation independently arranges payment of the premium, restrictions on receiving commissions from insurers. These changes affect strata managers, not licensed insurance brokers operating under a separate AFSL framework.
What does strata insurance not cover in NSW?
Standard strata insurance does not cover personal contents inside individual lots, motor vehicles, loose floor coverings, renovations by individual lot owners unless specifically added, wear and tear, building defects or faulty workmanship, intentional damage, or an individual lot owner’s personal legal liability. Lot owners should not assume the strata policy covers everything within their property and should consider a separate contents or landlord insurance policy for their own protection.
Who is responsible for arranging strata insurance in NSW?
The Owners Corporation is legally responsible for arranging strata insurance under the Strata Schemes Management Act 2015. In practice, this is carried out either by an appointed strata managing agent or by a licensed insurance broker acting on the committee’s instructions. Where a strata manager arranges the insurance, the three-quotation requirement under Section 166 applies. Where a licensed broker arranges cover directly, the Section 166 requirement does not apply to the broker.
What is the difference between a strata policy and a landlord insurance policy in NSW?
The strata policy covers the building, common property, and shared infrastructure of the scheme, arranged collectively by the Owners Corporation. Landlord insurance is a separate policy arranged by an individual lot owner who rents their lot to a tenant. It typically covers the owner’s contents within the lot, loss of rent, malicious damage by tenants, and the lot owner’s own legal liability as a landlord. The two policies are complementary, not interchangeable.
