At CHU, we’ve handled thousands of strata claims, and we know the most common ones inside out. If you’re wondering what the most common residential strata claims are, the biggest culprits include: water damage, weather events, accidental damage, legal liability, fire, theft and vandalism. The good news is that many of these claims can be reduced, or even prevented, with the right maintenance and risk management.

In this guide, we’ll walk through the six most common residential strata insurance claims and share practical steps you and your strata committee can take to avoid them.

How Can You Avoid Water Damage in Strata Buildings?

From CHU’s internal data, just over 50% of residential strata claims^ lodged are the result of water damage. Whether it’s a burst pipe, overflowing water or even roof damage — if it’s not managed in time, it could lead to a large claim.

Gradual deterioration or wear and tear should be rectified by maintenance. The source of leaks can be hard to detect, so getting some help to do so can be valuable. Modern technology enables pipe location/leak detection with minimal exploratory destruction.

CHU has access to Drones and Lidar technology that can identify damage to roof areas safely.

How to avoid:

Here are some steps to help prevent water leaks and damage in your strata property:

• Check the warranty expiry date on the collar of flexi hoses and that they are intact on all personal and communal appliances which are plumbed in, like washing machine, dishwasher and water filter
• Clean and maintain roof and gutters and look for for damaged tiles, obstructions or blockages
• Investigate any reports of water pressure changing or an increase in water charges, there could be a leak behind the walls or with the garden reticulation
• Inspect walls and ceilings for blistering, water marks or stains
• Don’t walk away when filling the bath or sink
• Turn off the water when leaving your residence for a longer period of time

How Can You Reduce Storm and Flood Insurance Claims?

Although Australia is famous for its great weather – we know that it can actually be very turbulent, and sometimes extreme. From CHU’s internal data, natural events including storms make up for around 25% ^ of residential claims each year.

How to avoid:
Make sure your building is storm-ready by:

• Keeping contents and appliances out of areas that are at risk of flooding
• Clearing gutters and balconies regularly, so rainwater can drain
• Trim back trees and branches
• Secure loose items such as chairs, bins, and outdoor items during storm warnings to prevent them from becoming hazardous projectiles
• Prepare your residents for storms, by informing them of what to do when there’s a storm approaching  
• Tune into local weather reports and check in on your neighbours and tenants that they are safe and prepared

How Can You Prevent Accidental Damage in Strata Properties?

Accidental damage claims can be some of the most frustrating, because they often could have been easily avoided.

How to avoid:

• Ensure communal areas are kept well maintained, clean and tidy, and that common traffic areas are clear of obstructions to prevent an incident
• Check before you dig in the garden to prevent damage and disruption to reticulation or infrastructure networks (Dial before you dig www.1100.com.au)
• Use professional tradespersons for maintenance and/or installations
• Educate residents about proper care and use of common areas and facilities

What Does Legal Liability Cover in Strata Insurance?

Not the most common claim, but Legal Liability can be the most expensive. It covers you when you’re legally responsible to pay compensation if an incident has occurred.

This could include covering the legal and indemnity costs for:

• Accidental damage to someone’s personal property in common areas – including tradespersons
• Injury or death caused by negligence, and any loss of earnings due to injury
• Wrongful acts by an Office Bearer (e.g. the Chairperson, Secretary or Treasurer of the committee) for a breach of duty or clerical mistake

How to avoid:

• Keep an eye out for any potential safety hazards, take all reasonable action to minimise a risk as soon as possible and report any potential concerns to the Body Corporate
• Encourage residents to promptly report issues  and safety concerns to the Body Corporate or Strata Manager
• Keep a record of any potential hazards and actions taken to mitigate these risks. This can provide valuable evidence in the case of a legal dispute
• Establish clear procedures for managing risks, including emergency response plans and clear signage in common areas
• Ensure that all Office Bearers are aware of their duties and responsibilities so that they can perform their roles effectively

How Can Strata Committees Reduce Fire Risks?

If a fire starts in your building it can spread fast and the damage can quickly become a total loss. 

As well as having fire safety equipment fitted, get your appliances serviced regularly and act quickly if someone reports an issue with wiring or power outlets.  Consider installing an RCD (residual current device) for additional protection that ordinary fuses and circuit-breakers cannot provide.

Here are some of the most common sources of residential fires to be aware of:

• Faulty wiring or old appliances causing electrical/mechanical fires, such as air conditioning units or dryers
• Lint filters on washing machines and dryers that are not cleaned
• Kitchen fires caused by fryers, overheating pans and hotplates
• Candles and incense burners left unattended
• Cigarette related fires – indoors and on terraces and balconies

How  to avoid:

• Conduct regular maintenance and inspections to ensure all electrical systems including fire alarms are working properly
• Regularly clean out lint filters in dryers
• Install and maintain fire safety equipment such as smoke detectors, sprinklers, and alarms
• Establish a fire safety protocol such as regular fire drills and emergency evacuation plans
• Encourage residents to never leave cooking unattended, extinguish naked flames like candles before leaving a room, and educate them on the safe storage of flammable items
• Equip common areas and units with fire extinguishers and fire blankets with clear instructions on how to use them in the event of a fire

How Can You Prevent Theft and Vandalism in Strata Buildings?

Items in the common areas like BBQs, gardening tools and gym equipment may be an attractive target for burglars. Often it can be easier to gain access to these areas than resident’s homes, and they can blend in around the building under the guise of a tradesperson or new resident.

As well as replacing any stolen items, you might also have to claim for broken windows and doors or new locks if the intruders have forced their way into the building. So sometimes a small break-in could result in a much larger insurance claim.

How to avoid:
Here’s a few easy actions you and your residents can take to help prevent a break-in or theft in the building:

• Introduce yourself — get familiar with your neighbours and tenants so you’ll recognise anyone out of place
• Don’t be afraid to question unfamiliar people entering the property
• Consider adding smart locks to shared areas like garages, terraces and gyms
• Don’t leave doors propped open – especially during deliveries or removals
• Wait for the shared garage door to be closed before exiting the driveway
• Increase your security by adding intercoms, motion lights or security cameras – although pricey it is a good investment

Find out more about CHU Residential Strata Insurance Plan

 How Can Strata Committees Reduce Insurance Claims Overall?

Mitigating the risks in your strata property decreases the likelihood of urgent repairs and the need to file claims. By regularly inspecting your building and maintaining ongoing upkeep, you can significantly reduce the risk of potential issues. 

1. Schedule Regular inspections

Conducting regular building inspections helps identify and address any issues before they escalate into costly problems. Many strata claims stem from poor maintenance and known maintenance defects. Furthermore, an ongoing lack of maintenance can lead to multiple claims, increasing the risk profile of your property. Demonstrating proactive maintenance practices, such as scheduling routine checks, addressing issues promptly, and maintaining up-to-date records, is essential in minimising risks.

2. Upgrade security and fire systems

Upgrading safety systems enhances the security and safety of your property and residents. A modernised security system deters vandals and intruders, while updated fire alarms and sprinkler systems help mitigate fire risks, offering protection for your strata property.

3. Stay compliant with building codes

Compliance with current building codes mitigates risks by reducing the likelihood of building defects and accidents that could lead to costly claims. Staying up-to-date with local building regulations and ensuring your strata property meets all requirements is crucial. Periodically review your building’s safety and maintenance standards to avoid potential issues.

4. Manage Water Damage Risks

Water damage is one of the most common and costly issues in strata properties. To minimise the risk, consider implementing preventative measures such as regular plumbing inspections, roof maintenance, and gutter cleaning. Ensure that all common areas have adequate drainage systems to handle heavy rainfall. Additionally, encourage residents to report leaks or water-related issues promptly so they can be addressed before they escalate.

5. Adopt Smart Technologies

Incorporating smart technologies into your strata property can significantly enhance security and prevent potential issues. For instance, installing water leak detectors can help you detect leaks early and avoid costly water damage. Smart locks offer enhanced security by allowing you to control access remotely, while smart thermostats can optimise energy usage and prevent overheating. Smart garage doors provide additional safety and convenience by allowing you to monitor and control access. Embracing these technologies not only protects your property but also improves the overall living experience for residents.

We know that there’s always going to be some unavoidable accidents or damage, especially in a shared property. But because we’re experts in residential strata insurance, we can help to tailor your policy, so you’re confident that you have the right cover for your building.  

More information

Enhance Your Strata Property’s Safety to Minimise Risk

Implementing effective risk management strategies is crucial for maintaining the safety of your strata property and its residents, as well as reducing the potential of claims. Each state and territory mandates that strata title properties hold strata insurance, which provides essential coverage for common areas against accidental damage, including that caused by natural disasters like bushfires and floods. Additionally, residential strata insurance often includes liability coverage for personal injury, offering further protection for your property and its occupants.

Explore our residential strata insurance plan to safeguard your property from common claims.

^ Estimate based on CHU Assess claims.

CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFS Licence No: 243261) acts under a binding authority as agent of the insurer QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFS Licence No: 239545). Terms, conditions, limits and exclusions apply to the products referred to above. Any advice in this article is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before making a decision to acquire any product(s) or to continue to hold any product we recommend that you consider whether it is appropriate for your circumstances and read the relevant Product Disclosure Statement which can be viewed on this website or obtained by contacting CHU directly. 

FAQs About Strata Insurance Claims

1. What are the most common strata insurance claims?
Water damage, storms, accidental damage, legal liability, fire, and theft.

2. Does strata insurance cover water leaks?
Yes, sudden leaks are usually covered — but gradual wear and tear or poor maintenance may not be.

3. Who is responsible for fire damage in a strata building?
Strata insurance typically covers damage to the building and common areas. Owners may need contents or landlord insurance for what’s inside their lot.

4. What happens if a resident causes accidental damage in common property?
It may be covered by strata insurance, but the body corporate could recover costs from the responsible resident.

5. Does strata insurance cover theft from common areas?
Yes, strata insurance usually covers theft or vandalism in common property, such as gyms, BBQs, or shared storerooms.

6. How can a strata committee reduce its insurance premiums?
By proactively managing risks, maintaining the building, reducing claims history, and demonstrating good record-keeping to insurers.

Why Choose CHU?

Accidents and damage can’t always be avoided, but the right insurance helps protect your building and residents.

With over 45 years of expertise and thousands of strata claims managed each year, CHU is Australia’s leading strata insurance specialist. We’ll help tailor cover for your property so you’re confident you have the right protection.

 Find out more about CHU Residential Strata Insurance Plans.

In the insurance industry, the true measure of excellence is how effectively claims are managed when policyholders need support the most. CHU’s claims team has built a reputation for demonstrating empathy and expertise to deliver an efficient and quality claims customer experience. One recent example that highlights CHU’s commitment to best-in-class claims management is a challenging water and fire damage claim in Melbourne apartment. 

A Complex Case of Fire and Water Damage 

During the redevelopment of a vacant 10th-floor apartment, an unexpected incident occurred during construction activities that led to a fire outbreak. While the fire was being contained, the unsuspecting residents of the apartment below was affected by water damage and which seeped through the floors of the 10th floor, causing significant damage to ceiling, walls and the parquetry flooring within the apartment on the 9th floor.  

This situation not only resulted in costly repairs but also significantly impacted the residents, a family who had lived in the apartment for over 20 years. Faced with a complex claim, CHU’s expertise and commitment to service became the key to a smooth resolution. 

Rapid Response & Customer-Focused Solutions 

Upon being notified of the incident, CHU immediately took action by: 

• Assessing the claim, ensuring the safety of the residents first and foremost. Organising temporary accommodation that suited the needs of the family. 
• Appointing expert loss adjusters to assess the full extent of the damage. 
• Engaging CHU’s trusted builder to facilitate repairs efficiently. 
• Coordinating the complete replacement of the parquetry flooring to maintain the integrity and quality of the property. 
• Keeping residents and property managers informed at every stage to minimise stress and uncertainty. 

Beyond Repairs: Restoring Confidence 

CHU’s dedication to excellence goes beyond just repairing the physical damage to the property, our team are focused on instilling confidence and peace of mind for our customers. During these unexpected incidents, our customers need us the most, not just to undergo the repair work but also to support customers through what can be a very challenging time.  

The Melbourne Fire and Water Case Study is just one example of how CHU navigates complex strata insurance claims with precision and care. Our customer-first approach ensures that policyholders are supported from the moment a claim is lodged until the final repairs are completed and the keys are handed back. 

Read more about this case study and other real-life examples of CHU’s claims expertise in action. 

In the insurance industry, the true test of service comes when customers need it most, at the time of a claim. CHU’s claims team is often one of the first on the scene post claims event to assess the damage and make sure the site is made safe, and our customers are supported. The Dee Why mega storm was one such example of CHU’s commitment to delivering claims excellence. 

An unexpected storm that raised the roof of an apartment building  

In the lead-up to Christmas, a powerful storm cell devastated parts of NSW Northern Beaches. Among the hardest-hit properties were two CHU insured apartment buildings in Dee Why, where extensive damage left residents displaced and property owners facing significant losses. 

This was a defining moment for CHU’s claims team, demonstrating their ability to act quickly, support affected customers, and facilitate high-quality repairs to restore homes and stability. 

Rapid Response & Customer-Focused Service 

At CHU, every claim represents more than just a transaction, it’s about people, their homes, and their peace of mind. When the Dee Why storm struck, CHU’s emergency after-hours hotline was immediately activated, connecting property owners with professional support without delay. Chris Frazer, General Manager of CHU Services, and Senior Loss Adjuster Vince Tramonte were notified and on site to assess the damage and implement an action plan. 

Their priorities were clear: 

• Ensuring resident safety through immediate site inspections and coordination, working with emergency services. 
• Providing temporary accommodation for displaced residents during the holiday season. 
• Maintaining transparent communication with Strata Managers and Insurance Brokers to keep policyholders informed. 

Beyond Repairs: Rebuilding Confidence 

CHU’s commitment to high-quality repairs is upheld by CHU’s panel of trusted builders and repairers. Engaging trusted builders means that CHU can coordinate complex repairs efficiently while mitigating buildings against future extreme weather events. 

The Dee Why case study demonstrated CHU’s ability to navigate challenges while maintaining a focus on exceptional service and long-term solutions. The customer feedback received by CHU after the claim was complete highlighted the positive outcome for our customer:

“A severe storm cell caused significant damage to my top-floor apartment in Dee Why and blew the entire roof off our apartment block. Fortunately, no one was hurt, and my tenanted apartment was covered by CHU strata insurance.

Vince from CHU demonstrated care and consideration during the lengthy and complex remediation, keeping me informed, and being patient with all the owners.

CHU covered for loss of rent during remediation. The finished product was of outstanding quality, allowing me to increase my rental income. I love it so much that I plan to move back in one day. “

Why CHU’s Claims Team Stands Out 

When the unexpected occurs, CHU customers can rest assured they will have the support they need. With a focus on expertise, empathy, and efficiency, CHU continues to set the standard for strata insurance claims, proving time and again that they are there when it matters most. 

Read more about this case study and other real-life examples of CHU’s claims expertise in action. 

The Federal Government estimates that every year, more than 4500 fires across Australia are caused by cigarettes. One of the biggest causes of fire in apartments and other residential homes is cigarettes which have not been extinguished properly.

Fires in apartments can have a devastating effect on the whole apartment block. Apartment fires have the potential to spread heat, smoke and fire throughout the building very quickly, not only causing considerable damage but also putting the lives of residents at risk.

Some fires in apartments have been caused by a smoker on a balcony leaving it smoldering on an outside table on their deck. Or they flick it off their balcony and it lands on a balcony below, setting fire to items on the other occupant’s deck.

Increasing threat

Another increasing fire threat is overheating lithium batteries (officially known as lithium-ion batteries).

The greater use of these batteries has seen fires correspondingly increase. They are contained in everything from large-scale solar energy storage systems to hybrid and electric vehicles, and smaller scale devices like laptops. Most portable electronic devices use single lithium cells, such as cell phones, smart-watches and e-cigarettes. They are also now used extensively for higher-powered portable applications like power tools, remote-controlled vehicles, lawn mowers, bikes and scooters and even in children’s toys

Emergency Services departments warn that with the use of lithium batteries expected to increase over the next few years, this could result in a surge of preventable blazes.

Lithium batteries are extremely sensitive to high temperatures and highly flammable. They tend to degrade quickly due to heat. If a lithium battery pack fails, it will burst into flames and can cause widespread damage. Fires mainly start during charging.

Once lithium battery fires take hold, they are notoriously difficult to put out.

Apartment residents should be careful to keep them away from flammable material and ensure they use charging systems specifically manufactured for your product rather than less costly, unbranded versions.

Lithium batteries should not be left on a permanent charge— even overnight can trigger overheating. When the device is charged, it should be unplugged.

Be prepared

Strata communities can do a lot to minimise fire risks in their buildings.

Regular fire safety checks should be at the very top of the strata committee’s list. As strata property’s mandatory fire safety requirements will differ a little from state to state, each property’s strata committee should be aware of their local requirements.

Fire safety equipment, such as fire extinguishers, sprinklers and smoke alarms, should be serviced and maintained regularly to ensure they are in good working order and fire doors needed to be clear of any obstructions.

 If there is a fire, it’s important the apartments have an evacuation plan, and all occupants are aware of it.

Australia’s leading strata insurance specialist CHU and its digital underwriting agency Flex Insurance are waiving bushfire claim excesses for residential strata buildings, community associations and community association lot owner homes, contents and landlords for strata. 

In addition, CHU and Flex, in partnership with our insurer QBE, are helping customers by:

• Providing additional resources to process claims as quickly as possible.
• Deploying the CHU Assess team in heavily impacted areas to expedite the claims process.
• Organising emergency and temporary accommodation assistance.

For more information click here to download our FAQ document which may help you.

If you or your customers have any queries, please do not hesitate to contact us on our emergency hotline 1300 361 263 or lodge a claim online.