Strata Insurance, matched properly
Strata insurance explained: what it covers, what owners insure themselves, each state’s legal requirements, common exclusions, and one licensed or authorised broker to arrange it.
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Step 1 of 3What is Strata Insurance?
Strata insurance, also called strata building insurance, covers the building and common property of a strata title scheme, plus the owners corporation’s liability. Residential strata insurance is for apartment buildings, and commercial strata insurance is for offices, shops and mixed-use buildings. Schemes generally must hold building and liability insurance, with some exemptions by state and scheme type. The owners corporation or body corporate arranges it and pays from levies.
Who commonly considers it.
- Owners Corporations Residential apartment complexes and high-rises
- Commercial Strata Mixed-use developments and shared office spaces
- Strata Managers Professional managers handling diverse property portfolios
- Community Title Gated communities and shared facility estates
What strata insurance covers: the building and common areas.
Based on two strata insurers’ policies, they generally cover these.
- The building The building and common property, including owners’ fixtures, plus common area contents. Owners’ improvements can be added as an extension; one insurer caps it at 10% of the sum insured20, 21.
- Public liability Claims for injury or damage on common property, up to the limit the law sets in each state (see below)20, 21.
- Office bearers’ liability Claims against committee members for decisions they make20, 21.
- Fidelity guarantee Theft of the scheme’s money. One insurer adds cyber and social engineering fraud20.
- Voluntary workers One insurer pays $300,000 for accidental death, and up to $2,000 a week if a volunteer is totally disabled21.
- Lost rent and accommodation Rent if a damaged lot is leased, or temporary accommodation if the owner lives there, plus emergency accommodation of up to $2,500 per lot20, 21.
- Machinery breakdown A section or an optional extension, depending on the insurer20, 21.
What owners insure themselves in a strata property.
Strata insurance, the building policy, doesn’t cover everything inside a lot.
- Contents Contents insurance is separate: owners’ and tenants’ contents usually aren’t covered by strata insurance1.
- Landlord risks Such as lost rent from a tenant, which needs a separate landlord policy26.
- Finishes In NSW, the building policy doesn’t have to cover paint, wallpaper or temporary floor coverings2.
- Your own lot In NSW, the law preserves an owner’s right to insure their own lot as well2.
Strata law across Australia, state by state.
Strata schemes are generally required to hold building and liability insurance, although exemptions can apply depending on the state or territory and the type of scheme. These are the main rules.
- NSWRebuild “as new”, and public liability of at least $20 million. NSW Fair Trading recommends a valuation every 2 to 5 years. Strata agents must give at least three quotes, or explain in writing why they can’t, and show any commission in each quote1–3.
- QueenslandFull replacement value, public liability of at least $10 million, and a valuation at least every 5 years5.
- VictoriaReinstatement and replacement cover for buildings, public liability of at least $20 million, and a valuation every 5 years for larger (prescribed) owners corporations6, 7.
- Western AustraliaReplacement value, and public liability of at least $10 million. Flood, the sea and erosion are outside the legal minimum8, 9.
- South AustraliaReplacement value, public liability of at least $10 million, and fidelity guarantee cover11, 12.
- TasmaniaAll buildings restored “as new”, and public liability of at least $10 million13, 14.
- ACTReplacement value, and public liability of at least $10 million15, 16.
- Northern TerritoryReinstatement of common property, and public liability of at least $10 million under the 2009 Act17.
How much does strata insurance cost?
The ACCC publishes average residential strata premiums by region, and strata insurer CHU publishes average premiums per lot. A guide, not a quote.
Residential strata, national mean, 2024–25. ACCC.22
National average in the year to June 2025, up 2.8%. CHU.24
Since 2021–22, but only 6% per $100,000 insured. ACCC.22
Of the average policy cost in northern Australia. ACCC.22
Average residential strata premium by region, 2024–25. ACCC, June 202622:
Average premium per lot by city, year to June 2025. CHU24:
What affects the price.
What insurers and the ACCC point to.
Sum insured
The rebuild value the policy is based on20.
What a strata policy doesn’t cover.
Every policy lists its exclusions in its product disclosure statement (PDS). Both strata policies we reviewed exclude these.
- FloodUnless it’s selected, and damage from the action of the sea20, 21.
- Wear and maintenanceWear and tear, rust, mould and poor maintenance20, 21.
- Known defectsDefects known about and not fixed, and faulty workmanship20, 21.
- Ground and waterTree roots, earth movement and underground water20, 21.
- Retaining wallsStorm damage to retaining walls20, 21.
- Large building worksThe insurer must be told before large works start. One policy sets the limit at $500,000, the other needs written agreement for works over $250,00020, 21.
- Also excludedVermin, consequential loss, asbestos liability, war and most cyber risks20, 21.
Water damage and valuations.
Two things that often cause strata insurance disputes.
- Where the leak comes fromIn NSW, a leak under your kitchen sink is generally the owner’s repair. A leak through boundary-wall plumbing from the unit upstairs is the owners corporation’s4.
- Burst pipes and slow leaksThe policies we reviewed cover sudden bursts, but not leaks that happen gradually20, 21.
- Emergency repairsAn owner who pays for an emergency repair may be reimbursed if the owners corporation was responsible4.
- ValuationsIn one published case, an insurer recalculated a NSW scheme’s sum insured of $71.9 million as $4.2 million higher, because of how rebuilding cost increases were timed25.
- UnderinsuranceIn Tasmania, the law makes the body corporate liable if the building is underinsured13.
Common questions.
Is strata insurance compulsory?
Generally, yes. Strata schemes are generally required to hold building and liability insurance, although exemptions can apply depending on the state or territory and the type of scheme, such as some small two-lot schemes in NSW and Victoria.
What strata insurance does a Queensland body corporate need?
Queensland law requires building cover for full replacement value, and public liability of at least $10 million. The building must also be valued at least every 5 years.
Who pays for strata insurance?
The owners corporation or body corporate, from levies that are usually split by each lot’s entitlement.
Are my belongings covered by strata insurance?
Generally not. Owners’ and tenants’ contents usually aren’t covered by the building policy.
Is my kitchen covered?
Usually, because fixtures are part of the building. Carpets and removable fittings usually aren’t.
Who pays the excess on a strata claim?
It depends on the state and the scheme. In Queensland and Tasmania, the owner usually pays if only their lot is affected, unless the body corporate decides otherwise.
Who pays for water damage?
It depends on where the leak comes from. In NSW, a leak under your kitchen sink is generally the owner’s repair, but a leak through boundary-wall plumbing from the unit upstairs is the owners corporation’s.
How often must the building be valued?
At least every 5 years in Queensland, and for larger (prescribed) owners corporations in Victoria. NSW Fair Trading recommends every 2 to 5 years.
Is flood covered?
Only if it’s selected on the policies we reviewed. In Western Australia, flood sits outside the legal minimum.
Why has our strata premium gone up?
The ACCC points to claims costs, reinsurance and larger sums insured. Outside northern Australia, premiums rose 70% from 2021–22, but only 6% per $100,000 insured.
Do strata managers earn commissions on insurance?
They can. In NSW, strata agents must give at least three quotes, or explain in writing why they can’t, and show any commission in each quote.
Can I insure my own lot as well?
Yes. In NSW, the law preserves an owner’s right to insure their own lot.
Can I get a strata insurance quote through COVRA?
Yes, from the broker. COVRA passes your enquiry to one licensed or authorised broker, who can get quotes from insurers for you. COVRA doesn’t quote or sell insurance itself.
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Guides on Strata Insurance.
Plain-English answers, with sources, to the questions businesses ask about this cover.
Related cover.
Other cover often considered alongside Strata Insurance.
Sources.
- Managing strata finances and insurance, NSW Fair Trading, 22 June 2026
- Strata Schemes Management Act 2015 (NSW), NSW Legislation, current at 26 August 2026
- Strata Schemes Management Regulation 2016 (NSW), NSW Legislation, current at 26 June 2026
- Strata repairs and maintenance, NSW Government, 22 June 2026
- Building insurance and valuation, Queensland Government, 9 July 2025
- Insurance: owners corporations, Consumer Affairs Victoria, 5 May 2021
- Owners Corporations Act 2006 (Vic), ss 59–65, Victorian Legislation, version 024, 9 September 2026
- Strata Titles Act 1985 (WA), WA Legislation, 26 June 2025
- Managing finances and insurance, Landgate (WA), 18 July 2023
- Strata Titles (General) Regulations 2019 (WA), WA Legislation, 20 August 2026
- Strata Titles Act 1988 (SA), SA Legislation, 9 December 2021
- Strata Titles Regulations 2018 (SA), SA Legislation, 1 September 2026
- Strata Titles Act 1998 (Tas), Tasmanian Legislation
- Strata Titles (Insurance) Regulations 2019 (Tas), Tasmanian Legislation, 26 August 2019
- Unit Titles (Management) Act 2011 (ACT), ACT Legislation, 26 June 2026
- Unit Titles (Management) Regulation 2011 (ACT), ACT Legislation, 26 November 2025
- Unit Title Schemes Act 2009 (NT), NT Legislation
- Unit Titles Act 1975 (NT), NT Legislation
- Insurance premium and excess, Queensland Government, 27 September 2023
- Residential Strata Product Disclosure Statement (QM562-0526), CHU (underwritten by QBE), 10 March 2026
- Strata Insurance Product Disclosure Statement (SCI-PPW-04/2026), Strata Community Insurance (underwritten by Allianz), 1 April 2026
- Insurance monitoring report (final), ACCC, 25 June 2026
- Insurance monitoring report, ACCC, 22 July 2025
- 2025 State of the Strata Market, CHU, October 2025
- Building valuations and underinsurance, Strata Community Insurance, 1 October 2023
- Important documents, CHU
