Our Strata Insurance Has You Covered

Strata insurance is important for building that share common spaces

What is Strata Insurance?

The concept of strata insurance is approximately 50 years old, but the idea is popular worldwide. Strata cover is compulsory in all Australian states and territories. Owners of strata-titled property do not have the option to refuse this cover.

Essentially, if you own an apartment or a unit and share common areas with others you need strata insurance. This will pay for damages to shared areas, as well as the building.

Who Needs This Insurance?

All persons who belong to an owners’ corporation in a flat, duplex, townhouse, or, a unit need strata insurance.

Strata owners share liability for unforeseen events and damages, so the insurance is required.

Important Facts

  • A report from the Insurance Council of Australia revealed that strata insurance premiums are approximately 1/3 of premiums for equivalent cover on a stand-alone house.
  • There is a consistent rise in the number of apartments in Australia.
  • Strata insurance premiums will vary based in part on the location and perceived risks.

Factors That Help Determine the Premium Cost

  • Age and condition of the property
  • Replacement costs for the property
  • Claims history of the strata property
  • The risk profile of the strata property
  • Level of excess selected
  • Costs of the common property

What Can Strata Insurance Cover?

While individual policies can vary, strata insurance can cover the building, contents, and shared common spaces that belong to the strata owner’s corporation.

Benefits of Compulsory Strata Cover

Strata insurance will payout for the following:

Public LiabilityPublic Liability
Injuries sustained by an individual or individuals
Building and Common ContentsBuilding and Common Contents
The structure as well as the content located in an area that the owners’ corporation holds a responsibility. This includes equipment, carpeting, fixtures, and furniture.

Potential Benefits of Optional Add-ons to Strata Insurance

Depending on the policy, the following can be part of the optional coverage in a strata insurance policy.

Mechanical and Electrical BreakdownMechanical and Electrical Breakdowns
Cover for necessary repairs if common mechanical or electrical equipment break down as a result of the loss.
Office Bearer's LiabilityOffice Bearer's Liability
Covers office bearers from legal action taken in relation to wrongdoing on the part of an office-bearer.
Fidelity GuaranteeFidelity Guarantee
Covers losses caused by misappropriation of the owner’s corporation funds.
Personal Accident for Voluntary WorkersPersonal Accident for Voluntary Workers
Covers losses incurred by a person volunteering to work on behalf of the owner’s corporation.

A List of Typical Exclusions From This Policy

  • Property features like fencing
  • Asbestos or asbestos derivatives
  • Personal contents within apartments
  • Erosion or earth shifting


Case Study

Strata owners experienced a loss due to a malfunction and fire of the building elevator mechanism. Because of strata insurance, repairs did not require any out of pocket money from the strata owners.

Please note this information is for educational purposes only and does not constitute complete advice and will not replace the guidance of a trained professional.