Strata Property Insurance

Strata insurance provides insurance cover for the building and common property areas of a strata-titled building, such as apartments, townhouses, commercial offices and even industrial type property.

Yes, it is mandatory under Australian law for buildings registered under a strata title. The Strata Titles Act for each state will define what is required to be included under a strata insurance policy, generally the building and public liability insurance must be covered at a minimum.

The only way to ensure your building is adequately insured is by carrying out an insurance replacement valuation through a qualified valuer. We strongly recommend an insurance replacement valuation is carried out at least once every 3 years. An insurance replacement valuation differs to a sales valuation as it includes items such as demolition costs, removal of debris, planning/design and rebuild costs, following a total or major loss e.g. fire – it does not include items such as land or sales value.

The cost is shared among all lot owners in the strata scheme. Payments are collected as part of regular strata levies set by the strata company

Strata insurance basics include:

The building’s structure e.g. walls, windows, roof, and ceilings, plus permanent fixtures such as vanities, cupboards and cabinetry.

Shared contents e.g. furniture in common rooms, gym equipment, carpets and rugs.

Public liability: the strata policy responds if someone is injured or their property is damaged on common property and the strata company is found liable.

Loss of Rent/Temporary Accommodation: covers the cost alternative accommodation for owner-occupiers who must vacate the property due to damage from an insured event. It also covers any lost rent for landlords (non-owner-occupiers) if their tenant must vacate.

Strata insurance does not cover personal belongings inside individual units, such as personal furniture, electronics, or clothing. It also excludes maintenance-related issues e.g. damage caused by age, wear and tear of items and any personal liability risks for owners or tenants within their own units.

Yes, owners are encouraged to take out contents insurance for personal items and landlord insurance if they are renting out the unit. These policies fill in the coverage gaps left by strata insurance.

No, flood cover and water damage insurance cover are not the same. They refer to different types of water-related events and have distinct definitions and coverage terms.

Flood is an additional cover from most insurers and is defined as the release or escape of water onto normally dry land that has released from the following:

- A river or creek

- A natural watercourse

- A dam or reservoir

Water damage claims are typically related to events such as burst pipes (most common) or failure of a flexi hose. Storm damage events can be related to heavy rain or strong winds that have caused damage to the building. Water and storm damage events are automatically included under the building section of the strata policy.

Working with an insurance broker offers several key advantages:

• They work for you, not the insurer. Brokers act in your best interest, helping you find the most suitable coverage.

• Expert advice and tailored solutions. Brokers are qualified to compare policies, assess your risk exposures, and recommend coverage that fits your specific needs.

• Access to more options. Brokers can offer a wider range of insurers and policy choices than you might find on your own.

• Claims support and advocacy. If you need to make a claim, brokers provide expert guidance and help resolve disputes on your behalf.

• Competitive pricing. Using a broker doesn’t increase your policy cost. In fact, brokers often negotiate better pricing with insurers.