Broking For You

Strata insurance

Strata insurance for Australian schemes

Strata insurance is scheme-level cover arranged for an owners corporation, body corporate or strata company. It commonly combines building reinstatement and public liability, with optional sections selected for the scheme's risks. Broking For You provides focused support to review valuations, construction, occupancy, claims, defects and state requirements, then approach suitable insurers. Cover and availability remain subject to insurer terms.

Insurance wording reviewed by John Andrew Law, Authorised Representative No. 1262267, on . Official legislative sources checked .

Discuss your strata scheme See the review checklist
Contemporary apartment buildings representing a strata scheme

What a review considers

Cover should follow the building, liabilities and real exposures

A strata schedule can contain several sections. The law sets minimum duties in some jurisdictions, while the policy wording decides what is actually insured. A useful review starts with the plan, replacement value and building information, not last year's premium alone.

Core scheme cover

  • Building and common-property reinstatement
  • Public liability for the owners corporation
  • Debris removal, professional fees and escalation allowances
  • Catastrophe-related costs where selected and available

Sections that may be relevant

  • Loss of rent and temporary accommodation
  • Office bearers' liability and fidelity
  • Machinery breakdown and electronic equipment
  • Voluntary workers and other scheme-specific benefits

Underwriting information

  • Construction, age, use and occupancy
  • Cladding, fire safety, defects and rectification
  • Claims, maintenance and capital-works history
  • Flood, storm, cyclone and other location exposures

Practical checklist

Information to assemble before renewal or a market review

Complete information helps insurers distinguish a well-managed scheme from an unexplained risk. Bring the facts early, especially where there are defects, cladding, water damage or major works.

Scheme and valuation

  • Registered strata plan, by-laws and scheme type
  • Current schedule, policy wording and endorsements
  • Current professional replacement-cost valuation
  • Lot count, building use, short-term letting and commercial occupancy

Condition and controls

  • Fire-safety statements, testing and compliance records
  • Cladding, structural, waterproofing and engineering reports
  • Maintenance plan, capital-works fund plan and completed repairs
  • Security, access, pools, lifts, plant and contractor controls

Claims and decisions

  • At least five years of claims and loss information where available
  • Open incidents, disputes and notified circumstances
  • Minutes relevant to defects, maintenance and proposed works
  • Committee priorities for limits, excesses and optional sections

Clear distinctions

What strata insurance is, and what it is not

Cover or arrangement Primary role Key point
Strata building insurance Insured physical damage to scheme property and selected scheme liabilities. Boundaries, statutory duties, limits, exclusions and the registered plan matter.
Lot owner's contents or landlord cover Personal contents, removable fixtures, landlord exposures and other lot-level interests. It can fill gaps that are not insured by the owners corporation's policy.
Latent defects or DLI Specified defects found after completion, subject to eligibility and policy terms. It is not a substitute for ordinary strata building insurance.
Contract works Specified physical loss or damage while construction or major works are underway. The works contract should state who arranges it and whose interests are covered.
Statutory home warranty Consumer protection for eligible residential building work under state legislation. It is a separate statutory scheme with its own eligibility and claim triggers.

Legislative overview

NSW and Victoria have different strata insurance rules

This is a practical signpost, not a substitute for legal advice. Requirements in other states and territories use different legislation, terminology, limits and exemptions, so the scheme's location and structure must be checked.

New South Wales

Part 9 of the Strata Schemes Management Act 2015 generally requires an owners corporation to keep the building insured under a damage policy and hold other insurance required by law. The regulation sets the rebuilding-cost calculation and a minimum public liability limit of $20 million.

  • The rebuilding amount includes specified associated costs, escalation and statutory charges.
  • Limited exemptions can apply, including qualifying two-lot schemes and an NCAT exemption.
  • If a strata managing agent arranges the cover, section 166 includes quote obligations and a written-reasons pathway where fewer quotations are obtained.
  • The current Act does not impose a fixed five-year valuation cycle. NSW Government guidance recommends regular professional valuations, often every two to five years.

Victoria

Sections 59 to 65 of the Owners Corporations Act 2006 deal with reinstatement and replacement insurance, public liability and valuations. The minimum public liability amount is $20 million for any one claim and in aggregate during the policy period.

  • Multi-level developments generally require cover for all lots as well as common property.
  • Limited exceptions apply to specified schemes, including some two-lot or services-only arrangements.
  • Every owners corporation other than a tier five owners corporation must obtain a valuation at least every five years, or earlier if it decides.
  • The valuation must be presented at the next general meeting.

Other Australian jurisdictions at a glance

Jurisdiction Current statutory signpost Important qualification
Queensland Under the Standard Module, relevant body-corporate 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. The community management statement identifies the applicable regulation module. Other modules and legacy BUGTA schemes can differ. A made amendment commencing at the end of 31 August 2026 extends the specified two-lot module's review exemption to 31 August 2027.
Western Australia Sections 97 to 99 of the Strata Titles Act 1985 address replacement-value insurance for insurable assets and at least $10 million public liability. Community title schemes have related duties under section 83 of the Community Titles Act 2018. Survey-strata, single-tier and community title structures have special rules and possible exemptions.
South Australia The Strata Titles Act 1988 and regulations address building replacement and public liability insurance. Sections 103 to 107 of the Community Titles Act 1996 govern community corporations separately. Responsibility can differ between strata and community lots. The Community Titles Regulations 2026 and Strata Titles (Miscellaneous) Amendment Regulations 2026 have been made for commencement on 1 September 2026.
Tasmania Sections 99 and 101 of the Strata Titles Act 1998 address reinstatement-to-new building and improvements cover and public-risk insurance. The regulation sets a $10 million public-risk minimum. Check the plan, common property and any applicable statutory exception.
Australian Capital Territory 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. Class B plans, structural responsibility and low-value exemptions need separate checking.
Northern Territory 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 has different building and liability rules. Identify which title regime governs the scheme before deciding what property and limit must be insured.

How a focused review helps

A clearer submission, comparison and renewal decision

  1. Define the scheme. Confirm the plan, insured property, occupancy, construction and statutory setting.
  2. Build the evidence. Organise valuations, claims, maintenance, defects and risk-control information.
  3. Approach suitable insurers. Present the risk accurately and answer underwriting questions.
  4. Compare more than price. Review limits, excesses, sublimits, exclusions, endorsements and insurer requirements.
  5. Record the decision. Give the committee clear information for its decision and note unresolved actions.

Strata insurance FAQ

Straight answers to common strata questions

What insurance must a strata scheme hold?

Requirements depend on the state or territory and the scheme. In NSW, most owners corporations must keep the building insured under a damage policy and hold at least $20 million public liability cover. In Victoria, most non-tier-five owners corporations must hold reinstatement and replacement cover and at least $20 million public liability cover. Limited exemptions apply.

Does strata insurance cover contents inside a lot?

Usually not personal contents, removable fixtures or every lot-owner improvement. The boundary between the strata policy and a lot owner's contents or landlord policy depends on the legislation, strata plan and policy wording. Each owner should check their own exposures.

How often should a strata building valuation be updated?

Victoria generally requires non-tier-five owners corporations to obtain a valuation at least every five years, or earlier if they decide. NSW law sets a replacement-cost calculation but no fixed five-year cycle under the current Act; NSW Government guidance recommends regular professional valuations, often every two to five years.

Is strata insurance the same as latent defects insurance?

No. Strata building insurance principally addresses insured physical damage and scheme liabilities. Latent defects or qualifying decennial liability insurance addresses specified post-completion defects. Contract works and statutory home-warranty cover are different again.

Official sources

Legislation and regulator guidance checked

These links were checked on 27 August 2026. Legislation and guidance change, so the current version should be checked for the scheme and decision date.

Broking For You review focus

Build a clearer strata information pack

We organise the registered plan and scheme type, current replacement-cost valuation, construction and occupancy, fire-safety records, maintenance and capital-works information, claims, engineering reports, defects and remediation evidence.

This can help an underwriter understand the scheme and unresolved issues. It does not guarantee insurer appetite, acceptance or a lower premium.

Start with the scheme facts

Need a practical strata insurance review?

Tell us about the building, valuation, claims and any defects or planned works. We can help organise the information and approach suitable insurers.

Start an enquiry