Broker-arranged
Strata insurance
Insurance for owners corporations and bodies corporate: the building, common property and the public liability the law requires. A licensed broker arranges strata cover and explains the differences between policies.
- NSW, Victoria and Queensland rules explained
- One short form, then a licensed broker takes it from there
What is strata insurance?
Strata insurance is the policy an owners corporation or body corporate holds for the building and common property, plus public liability for injuries on common property. In NSW and Victoria, the law requires at least $20 million public liability, and in Queensland at least $10 million public risk cover.
What the law requires
| State | Requirement |
|---|---|
| NSW | The owners corporation must insure the building against damage such as fire, lightning and explosion, and hold at least $20 million public liability. |
| Victoria | Owners corporations, except two-lot subdivisions, must hold reinstatement and replacement insurance for buildings on common property, and at least $20 million public liability. |
| Queensland | Bodies corporate must insure common property, body corporate assets and, in most cases, every building containing a lot, plus at least $10 million public risk. |
What strata covers, and what owners insure
| Item | Usually insured by |
|---|---|
| The building and common property | The owners corporation |
| Injuries on common property | The owners corporation’s public liability |
| Your contents, carpets and furniture | The owner or tenant |
| Lost rent from a unit | The landlord’s own policy. See landlord insurance. |
What a broker will ask about
How to get strata cover through us
Strata insurance questions
Is strata insurance compulsory?
Yes for owners corporations and bodies corporate in NSW, Victoria and Queensland, which must insure the building and hold public liability.
How much public liability does a strata scheme need?
At least $20 million in NSW and Victoria, and at least $10 million public risk in Queensland.
Does strata insurance cover my contents?
No. Owners and tenants insure their own contents.
Do I need landlord insurance if I rent out a strata unit?
Strata covers the building. Landlord insurance covers your contents, loss of rent and liability.
Why is strata insurance arranged by a broker?
Strata policies are large and vary between insurers, so a licensed broker reviews the scheme and arranges suitable quotes.
Do I need home insurance if I have strata insurance?
Yes, for your contents. Strata insurance covers the building and common property. What’s inside your lot, such as furniture, appliances and personal items, needs your own contents policy, and landlords need landlord insurance for rent and tenant damage.
Is strata insurance compulsory in NSW?
Yes. NSW says strata insurance is mandatory, and the scheme must hold building insurance, public liability of at least $20 million and work health and safety insurance. A strata manager must provide at least 3 separate insurance quotations for the committee to consider.
What isn’t covered by strata insurance?
Your contents, wear and tear, defects and damage from a lack of maintenance are usually excluded. Check the PDS for flood and water damage conditions, which vary between insurers.
Is strata insurance compulsory in Victoria?
Yes. Consumer Affairs Victoria explains that an owners corporation must insure the building and common property for its full replacement value and hold public liability insurance of at least $20 million, except two-lot subdivisions. See the Consumer Affairs Victoria page in the sources for the current rules.
Keep reading
More broker-arranged cover
Sources
Strata insurance