Strata Insurance is a specialized insurance product designed to protect strata-titled properties, such as apartments and townhouses, from various risks including storms, fires, and vandalism.
Beyond the building
This coverage extends beyond the physical structure of the property to include protection for common area contents and liability coverage for incidents occurring in shared spaces.
When damage or theft occurs within an apartment complex or townhouse community—whether to buildings, common areas, or their contents—it’s essential for owners and tenants to address the issue promptly and efficiently. In today’s environment, this need is more pressing than ever. Shared amenities such as garages, swimming pools, lawnmowers, washing machines, cleaning supplies, and elevators are all susceptible to damage, malfunction, or theft. Having Strata Insurance in place ensures minimal disruption to residents’ daily lives by providing the owners and the body corporate with a range of coverage options, enabling swift resolution of any incidents.
Residential and Commercial Coverage
In a multi-unit or multi-storey building, individual unit owners cannot insure their own units in isolation. Instead, Strata Insurance offers a collective policy that covers property damage across the entire building, including common areas and shared facilities. This type of coverage is vital for protecting owners from damages to the structure, loss of rent, and liabilities associated with the ownership of common property.
Strata Insurance is tailored specifically to insure common property and meet the legal requirements of state strata legislation. Residential and Commercial Strata Insurance typically covers shared property elements, such as walls, balconies, windows, roofs, floors, pools, driveways, and more. The premium is usually shared among the owners and is typically included in the body corporate fees.
Strata insurance is essential for anyone involved in a strata-titled property—and in most cases, it is a legal requirement. Whether you live in or own a unit in a building with shared spaces, such as an apartment complex, townhouse development, or mixed-use property, having this type of insurance is not only prudent but often mandatory.
What Strata Insurance Covers
Strata insurance protects shared buildings and common property within a strata or body corporate. It covers structural damage, communal contents, and public liability for incidents that occur in shared spaces.
Building Structure and Common Areas
This includes lifts, stairwells, car parks, pools, and other shared spaces.
Shared Contents
Coverage for communal property such as gardening tools and shared laundry appliances.
Public Liability
Protection against liability for injuries occurring in common areas.
Repairs Due to Fire, Storm, or Vandalism
Coverage for the cost of repairs resulting from damages caused by fire, weather events, or malicious damage.
Cover at a glance
Protection for buildings, common areas, and shared facilities
Cover for damage caused by fire, storms, vandalism, and theft
Liability protection for injuries in shared spaces
Optional cover for shared contents and equipment
Flexible policy options for residential and commercial strata schemes
Who needs it?
PI insurance is essential for professionals who provide advice or services to clients, helping protect against claims of negligence or error.
Owners’ Corporations (Body Corporate)
Legally required in every Australian state to insure common property and shared facilities.
Apartment, Unit, or Townhouse Owners
As a member of the owners’ corporation, your property is covered under the collective policy.
Commercial Strata Owners
Businesses operating in strata buildings require coverage for shared areas and liability risks.
Landlords of Strata Properties
Protects your investment and ensures tenants are not affected by issues in common areas.
Who Should Consider Strata Insurance?
(Even If Not Legally Required)
Strata insurance benefits anyone involved in a strata property, offering valuable protection for shared buildings, contents, and liabilities.
Business Owners in Strata Buildings
To cover risks such as damage to shared facilities or liability claims.
Prospective Buyers of Strata Units
Understanding the strata insurance policy helps assess risks and future costs.
Strata Managers or Committee Members
Responsible for ensuring adequate coverage and managing claims.
Residents Concerned About Safety or Value
Insurance ensures the building remains in good condition and helps protect against financial loss from unforeseen events.
How strata insurance works in practice
If a fire damages the lift in your apartment block, Strata Insurance can cover the full cost of repairs, ensuring that individual owners are not left with the financial burden.
If you’re part of a strata scheme, or are considering purchasing into one, understanding your Strata Insurance policy is crucial to protecting both your property and your financial interests. Should you need assistance reviewing or comparing coverage options, I am here to help.
