GET A STRATA QUOTE
Complete the form to request a QUOTE. Call us at 1300 900 207 for an immediate response.
Please note we are unable to assist with stand-alone Liability for common property
What Is Strata Insurance?
Strata insurance is a specialised form of building insurance designed for properties divided into individually owned lots, apartments, townhouses, units, and mixed-use buildings that share common areas and infrastructure. The policy is arranged by and in the name of the body corporate or owners corporation, covering common property and the building structure on behalf of all lot owners collectively.
The terminology differs by state, Body Corporate in Queensland, Owners Corporation in NSW and Victoria, Strata Company in Western Australia, but the underlying insurance obligation is consistent nationally.
What Does Strata Insurance Cover?
- Building and Common Property: Physical loss or damage to the building and shared structure from fire, storm, flood, theft, vandalism or accidental damage.
- Common Contents: Items the body corporate itself owns in shared spaces, gym and pool equipment, lobby furniture, shared laundry appliances, curtains, and artwork in common areas.
- Public Liability: The body corporate’s legal liability for injury or property damage to third parties on common property, standard minimum $20 million.
- Loss of Rent or Temporary Accommodation: Rent loss for an owner-investor or temporary accommodation costs for an owner-occupier if a lot becomes uninhabitable.
- Office Bearers’ Liability: Defence costs and damages for committee members facing an allegation of a wrongful act, error, or omission in managing the scheme.
- Fidelity Guarantee: Cover for fraudulent misappropriation of scheme funds by an officer or appointed manager, mandatory in South Australia.
- Machinery Breakdown: Repair or replacement of failed shared equipment, lifts, HVAC, fire pumps, electric gates, switchboards and pool pumps.
- Voluntary Workers: Cover for an unpaid committee member injured while carrying out work for the scheme, mandatory in NSW.
- Catastrophe Cover: An additional sum insured above the standard building limit, specifically for use following a declared natural disaster.
- Lot Owners’ Improvements: An optional extension covering privately funded upgrades, renovated bathrooms, kitchens, custom flooring, not automatically included in the standard policy.
Who We Work With
Coverscope arranges strata insurance for a broad range of schemes and clients across Australia:
- Owners corporations and body corporate committees, residential and mixed-use schemes of all sizes
- Strata managers requiring access to competitive markets at renewal
- Self-managed strata committees handling insurance directly
- Property investors needing to understand how the scheme’s policy interacts with their own landlord insurance
- Commercial strata owners, including office buildings, retail complexes, and industrial strata
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Strata Insurance Is Compulsory Nationally
Strata insurance is a legal requirement in every Australian state and territory under the relevant strata titles legislation, at minimum, building reinstatement insurance and public liability cover. The minimum public liability requirement, the exact legislation, and specific mandatory inclusions vary by jurisdiction, covered in full below.
Getting The Building Sum Insured Right Matters Most
The building sum insured should reflect the full reinstatement and replacement value of the structure, not the market value or purchase price, figures that can differ significantly, particularly where construction costs have risen sharply. An underinsured building can leave the committee seriously short-funded following a major claim. Most industry bodies recommend an independent valuation every three to five years.
Who's Actually Responsible For Arranging It
The body corporate or owners corporation is legally responsible for arranging strata insurance, in practice this is often carried out by an appointed strata manager or a broker acting on the committee’s instructions. In NSW, when a strata manager arranges insurance on the owners corporation’s behalf, three quotes are required under the Strata Schemes Management Act 2015.
Premiums Come From The Levy Fund, Not Individual Owners Directly
Strata insurance premiums are paid from the scheme’s administrative fund, funded by levies collected from all lot owners in proportion to their lot entitlements. Individual lot owners don’t pay the insurer directly, the body corporate manages payment, typically annually, with premium funding available to spread the cost.
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Our team continues to work remotely but you are welcome to arrange an appointment with one of our consultants.
Find The Right Cover
Complete the form to request a QUOTE. Call us at 1300 900 207 for an immediate response.
Strata Insurance Cover Types Explained
Building and Common Property
Covers the physical structure and shared areas of the scheme, walls, roofs, stairwells, lifts, driveways, gardens and shared recreational facilities, against fire, storm, flood, theft, vandalism and accidental damage. This section responds on a full reinstatement and replacement basis, meaning the payout reflects the actual cost to rebuild, not the property’s market value.
Common Contents
Covers items the body corporate itself owns in shared spaces, distinct from the building structure itself. Gym and pool equipment, lobby furniture, shared laundry appliances, curtains and artwork in common areas, and gardening equipment are typical examples. Without this cover named specifically, committees sometimes assume these items fall under building cover when they don’t.
Public Liability
Covers the body corporate’s legal liability if a visitor, contractor, or resident is injured, or their property is damaged, on common property, a slip on a wet stairwell, a falling tree branch, a gate malfunction. This is the cover every state and territory legislates a minimum requirement for.
Loss of Rent or Temporary Accommodation
If an insured event makes a lot uninhabitable, this section covers the rental income an owner-investor loses, or the temporary accommodation costs an owner-occupier incurs, while the lot is being repaired.
Office Bearers' Liability
Covers defence costs and damages if a committee member faces a claim alleging a wrongful act, error, or omission made while carrying out their role, protecting volunteers who are often making decisions without professional indemnity training or experience.
Fidelity Guarantee
Covers loss if scheme funds are fraudulently misappropriated by a committee member, strata manager, or other person with authority over the accounts. This is mandatory in South Australia and a sensible inclusion everywhere else, since strata funds are typically managed by people who aren’t professional custodians of money.
Machinery Breakdown
Covers repair or replacement costs if shared plant fails, lifts, HVAC systems, fire pumps, electric gates, switchboards, and pool pumps are common examples, reducing the disruption and cost of an unexpected mechanical failure.
Voluntary Workers
Covers an unpaid committee member or volunteer if they’re injured while carrying out work for the scheme, gardening, minor repairs, or general upkeep. This is mandatory in NSW and a genuine gap without it elsewhere, since volunteers generally aren’t covered by workers compensation.
Government Audit Costs and Legal Expenses
Covers legal costs the body corporate incurs responding to a government investigation, audit, or a dispute that ends up before a tribunal, costs that can accumulate quickly even where the body corporate has done nothing wrong.
Catastrophe Cover
An additional sum insured sitting above the standard building limit, specifically available following a declared natural disaster, when rebuilding costs across an entire region spike due to a sudden surge in demand for materials, labour, and contractors.
Lot Owners' Improvements
An optional extension covering improvements a lot owner has funded themselves, a renovated bathroom or kitchen, upgraded flooring, that go beyond the building’s original specification and aren’t automatically included in the standard building sum insured.
Strata Insurance Requirements By State And Territory
Insurance requirements are governed by state and territory legislation and are subject to change. Speak with a qualified insurance broker to confirm your scheme’s obligations.
| State / Territory | Governing Entity | Legislation | Min. Public Liability | Notable Requirements |
|---|---|---|---|---|
| New South Wales | Owners Corporation | Strata Schemes Management Act 2015 | $20 million | Voluntary workers insurance is mandatory. When a strata manager arranges insurance on the owners corporation’s behalf, three quotes are required under the legislation. |
| Queensland | Body Corporate | Body Corporate and Community Management Act 1997 | $10 million | Cyclone-prone postcodes are eligible for the ARPC Cyclone Reinsurance Pool. Building format plan vs standard format plan distinctions affect what must be insured. |
| Victoria | Owners Corporation | Owners Corporations Act 2006 (amended 2021) | $20 million | Raised from $10 million by the 2021 amendments. Victoria uses a five-tier scheme classification system affecting mandatory insurance obligations by scheme size and type. |
| Western Australia | Strata Company | Strata Titles Act 1985 (amended 2018) | $10 million | Legislation specifically excludes flood, sea damage, and erosion from mandatory insurance requirements, a distinction not found in other states. The governing body is the “council” of the Strata Company. |
| South Australia | Strata Corporation / Community Corporation | Strata Titles Act 1988 / Community Titles Act 1996 | $10 million | South Australia is the only state where fidelity guarantee insurance is a mandatory component of strata insurance. |
| Australian Capital Territory | Owners Corporation | Unit Titles (Management) Act 2011 | $10 million | Uses “unit title” rather than strata title. Class B unit plans (townhouse-style) can be exempted from mandatory building insurance if each unit is individually insured and the exemption is registered with the Registrar-General; public liability is still required regardless. |
| Tasmania | Body Corporate | Strata Titles Act 1998 | $10 million | Standard obligations apply. The body corporate arranges building and public liability insurance for common property. |
| Northern Territory | Body Corporate | Unit Title Schemes Act 2009 | $10 million | Cyclone risk is the primary concern. Eligible properties may access the ARPC Cyclone Reinsurance Pool. Darwin and surrounding schemes require careful attention to cyclone-specific policy terms. |
Get in Touch
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Suite 10B, Level 10, 2 Corporate Court, Bundall QLD 4217
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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.
Please complete the form to submit an enquiry.
What does strata insurance not cover?
Standard strata insurance does not cover personal contents inside individual lots, motor vehicles, loose floor coverings and carpets within a lot, renovations by individual lot owners unless specifically added to the policy, 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 policy for their own protection.
What is the difference between strata insurance and home insurance?
Strata insurance covers the building, common property, and shared infrastructure of a strata scheme and is arranged collectively by the body corporate or owners corporation. Home insurance covers a freestanding property owned and managed by a single owner. If you own an apartment or unit in a strata scheme, the building is insured by the body corporate. You are responsible for insuring your own personal contents and any privately funded improvements within your lot.
What happens if a claim exceeds the building's sum insured?
The insurer pays out up to the sum insured, and any shortfall becomes a special levy charged to owners proportional to their lot entitlement. In most states, individual owners carry personal liability for that gap, which is exactly why getting the sum insured right, and reviewing it regularly, matters as much as having the cover at all.
Can our committee choose its own insurer, or does the strata manager decide?
The owners corporation or body corporate has the legal responsibility, and the final say, even where a strata manager arranges the policy day to day. In NSW specifically, a strata manager arranging insurance on the owners corporation’s behalf must provide at least three quotes for the committee to consider.
What insurance do I need to arrange myself, on top of strata insurance?
Strata insurance stops at the building’s boundary. As an individual owner, you’re generally responsible for arranging your own contents insurance and landlord’s liability cover if you rent the unit out.
