Strata Insurance
Australia Wide

Strata insurance is insurance arranged for a strata scheme, body corporate or owners corporation. It generally covers the building and common property and may include additional sections such as legal liability, fidelity and office bearers liability. The exact cover depends on the policy.

Depending on the insurer and policy, strata insurance may cover the insured building and common property, legal liability, temporary accommodation or loss of rent, office bearers liability, fidelity, voluntary workers, machinery breakdown and catastrophe-related benefits. Limits, excesses, exclusions and conditions apply.

Strata and community title schemes are generally required to maintain certain insurance under the legislation that applies in their state or territory. The exact requirements differ between jurisdictions, so the scheme should check the legislation and professional advice relevant to its location.

Generally, no. Personal belongings such as furniture, electronics and other contents owned by an individual lot owner are usually outside the strata policy. Lot owners may need their own contents or landlord insurance depending on their circumstances.

Body corporate insurance is the term commonly used for insurance arranged by a body corporate for the building, common property and other insurable interests it is responsible for. The terminology and legal requirements vary by state.

Owners corporation insurance is insurance arranged by an owners corporation for the property and liabilities it is legally required or chooses to insure. The requirements depend on the relevant state legislation and policy.

Compare more than the total premium. Review the building sum insured, excesses, limits, exclusions, policy conditions, additional benefits and any insurer requirements that apply to the property.

The most useful documents are your current policy schedule, renewal terms, current building valuation, claims history and information about the building. If there are known defects, cladding issues or major works, insurers may require additional information.

It can, but the cause of the damage matters. A policy may respond to certain sudden or insured water-damage events while excluding maintenance, wear and tear, defects or other causes. The policy wording and circumstances of the claim need to be reviewed.

Strata insurance is generally not intended to pay for the cost of correcting defective design, materials or workmanship itself. Whether resulting damage is covered depends on the cause, policy wording, exclusions and circumstances.

A body corporate or owners corporation can generally review its insurance arrangements and appoint an adviser subject to its own governance requirements, existing appointments and instructions. If your renewal is approaching, contact us early enough to review the available information and options.

Start before the current policy expires, particularly where the property has claims, defects, cladding, unusual construction or other underwriting issues. The more time available, the easier it is to obtain and clarify insurer requirements.