Direct answer: there is no single national rule. The applicable insurance duties depend on the state or territory, title structure, building, project, contract, licence conditions and commencement date.
Insurance wording reviewed 6 August 2026. All-state sources checked 27 August 2026; NSW DLI status rechecked 30 August 2026.
Legislation guide
Australian strata and contract works legislation
Which laws apply? There is no single national answer. Strata insurance duties sit in state and territory laws, NSW DLI has a specific statutory meaning, and contract works insurance is different from compulsory home-building consumer-protection schemes. The applicable rules depend on the jurisdiction, scheme or plan type, building, project value, contract and commencement date.
Insurance wording reviewed by John Andrew Law, AR No. 1262267, on 6 August 2026 · All-state sources checked 27 August 2026 · NSW DLI status rechecked
New South Wales
Strata: Part 9 of the Strata Schemes Management Act 2015 generally requires the owners corporation to insure the building under a damage policy and hold public liability. The Regulation sets a $20 million public-liability minimum per event and the building sum-insured method. Limited two-lot and tribunal exemptions apply.
DLI: Part 11 Division 3AA defines NSW decennial liability insurance for eligible new strata apartment work. Where an eligible, regulator-accepted product is available, it is a voluntary 10-year, strict-liability pathway for defined serious common-property defects and may replace specified bond and inspection requirements. It is not mandatory for every development. The strata building bond remains 2% until 1 July 2028.
2026 amendment status: the Fair Trading and Building Legislation Amendment Act 2026 received assent on 14 August 2026, but its substantive DLI amendments commence by proclamation and had not commenced as at 30 August 2026. Building Commission NSW was still assessing prospective providers' policies. Assent is not proof that an accepted product is generally available or that DLI is mandatory.
Construction: Home Building Compensation cover is a separate statutory, last-resort scheme for eligible residential work over $20,000, subject to building-height and other exclusions. A standard contract works policy is not universally required by NSW law, although contracts, financiers and project-specific provisions may require it.
Owners corporations: Sections 59 to 65 of the Owners Corporations Act 2006 generally require reinstatement and replacement insurance and at least $20 million public liability. Non-tier-five owners corporations must obtain a building valuation at least every five years. Limited exceptions depend on the tier and property structure.
Latent defects: Victoria enacted a decennial framework in June 2026, but its operative provisions had not commenced as at 27 August 2026. Commencement is by proclamation, with a default date of 1 December 2027 if not proclaimed earlier. It should not yet be described as operational or compulsory.
Construction: Home Warranty replaced Domestic Building Insurance for eligible domestic building contracts from 1 July 2026 and generally applies above $20,000. It is separate from contract works. Ordinary contract works is not universally mandated, although protection work affecting adjoining property has a specific insurance requirement.
Body corporate: The Body Corporate and Community Management Act 1997 and the regulation module recorded in the community management statement govern the scheme. Under the Standard Module, relevant property is generally insured for full replacement value, an independent valuation is required at least every five years and public-risk cover must be at least $10 million. Other modules and legacy BUGTA schemes can differ.
Construction and defects: The Queensland Home Warranty Scheme generally applies to eligible residential construction above $3,300, with exclusions including many buildings over three storeys. This is not contract works or latent defects insurance. No general statutory DLI regime or universal private-project contract works mandate was identified.
Time-sensitive: Queensland has made the Statutory Instruments (Exemptions from Expiry) Amendment Regulation 2026. It commences at the end of 31 August 2026 and extends the specified two-lot module's review exemption to 31 August 2027. Until commencement, check the current in-force instrument.
Strata and community title: Sections 97 to 99 of the Strata Titles Act 1985 require relevant insurable assets to be insured for replacement value and public liability of at least $10 million. Survey-strata and single-tier schemes have special rules and exemptions. Community title schemes have related duties under section 83 of the Community Titles Act 2018.
Construction and defects: Home Indemnity Insurance generally applies to qualifying residential building work above $20,000 where the statutory conditions are met. It is consumer-protection cover, not contract works or LDI. No general statutory DLI regime or universal private-project contract works mandate was identified.
Strata and community title: The Strata Titles Act 1988 and Strata Titles Regulations 2018 govern strata corporations, including building replacement insurance and public-liability requirements. Community corporations are governed separately by sections 103 to 107 of the Community Titles Act 1996, and responsibility can differ between strata and community lots.
Construction and defects: Building Indemnity Insurance generally applies to approved domestic building work valued at $20,000 or more, subject to the Act and exemptions. It is separate from contract works and LDI. No general statutory DLI regime or universal private-project contract works mandate was identified.
Time-sensitive: The Community Titles Regulations 2026 have now been made and commence on 1 September 2026, replacing the 2011 regulations. The Strata Titles (Miscellaneous) Amendment Regulations 2026 have also been made for the 1 September transition. Check the in-force consolidated instruments on and after that date.
Strata: Sections 99 and 101 of the Strata Titles Act 1998 require reinstatement-to-new building and improvements cover and public-risk insurance. The Strata Titles (Insurance) Regulations 2019 set the public-risk minimum at $10 million.
Contract works: Tasmania is an important exception to the usual contract-driven position. Under the Occupational Licensing Act 2005 and the current Building Services Work Determination, licensed general-construction and fire-protection builders must hold specified Contract Works and public-liability cover. Policy scope and minimum sums are prescribed.
Latent defects and home warranty: No standalone compulsory DLI regime was identified. Tasmania's 2023 home-warranty amendments had not commenced as at 27 August 2026; current CBOS guidance describes the future home-warranty model as still being developed.
Unit title: Division 5.4 of the Unit Titles (Management) Act 2011 generally requires replacement-value building insurance and public liability. The Regulation sets a $10 million public-liability minimum and a low-value threshold for limited exemptions. Class B and other structural exceptions must be checked.
Construction and defects: Eligible residential building work above $12,000 generally requires complying residential building insurance or fidelity cover under the Building Act 2004 and Building (General) Regulation 2008. The Property Developers Act 2024 contains a future regulation-making pathway for LDI, but the relevant Building Act amendments were still awaiting commencement on 27 August 2026. No current regulation made LDI compulsory. Ordinary contract works is not universally mandated.
Unit title: The applicable plan regime matters. The Unit Title Schemes Act 2009 generally requires common-property reinstatement insurance and at least $10 million public liability. The legacy Unit Titles Act 1975 generally addresses all parcel buildings and improvements and has a $2 million statutory liability floor unless a higher amount is prescribed.
Construction and defects: Under the Building Act 1993 and current RBI and Fidelity Fund regulations, prescribed residential work valued at $25,000 or more generally needs approved fidelity protection, subject to building-class, height and other conditions. The threshold changed on 30 March 2026. This last-resort cover is not LDI or contract works. No universal private-project contract works mandate or standalone compulsory DLI regime was identified.
