Strata insurance defined
Strata insurance is insurance that the owners corporation (also known as the body corporate) is obliged to take out to cover the building, common property and common area contents of a strata scheme.
Insurance is available for both residential strata and commercial strata properties. It is mandatory to hold strata insurance that conforms to each state’s relevant legislation in Australia.
What does strata insurance typically cover?
Strata insurance typically covers common area contents, the building and shared property in the event of loss or damage. Generally, events like theft of common area contents, repairs to damaged property managed by the owners corporation and the cost of recovery if disaster strikes are also included in strata insurance. It is also compulsory for strata insurance in all parts of Australia to provide liability cover in the event that people are injured on common property.
Not sure about the type of cover you need?
CHU is an Australian strata insurance specialist that can assist you with arranging residential or commercial strata insurance cover that’s right for your property. We have offices in Sydney, Melbourne, Brisbane, Adelaide and Perth, and offer tailored guidance on our products and the cover that is suitable for you and your property.
Residential strata
Commercial strata
If you are managing mixed-use strata, see commercial strata.
Legislation information by state:
Strata Insurance New South Wales
In New South Wales, owners corporations shoulder the responsibility of managing five fundamental aspects of their scheme: property, finances, insurance, records and building defects, as mandated by the Strata Schemes Management Act 2015 No 50 (NSW).
Strata Insurance Victoria
In Victoria, owners corporations are mandated to fulfill various obligations and duties as per the Owners Corporation Act 2006 and associated legislation.
Strata Insurance Queensland
In Queensland, the responsibility for maintaining and securing common areas rests with bodies corporate and community title schemes, as outlined by the Body Corporate and Community Management Act 1997 (Qld).
Strata Insurance Western Australia
In Western Australia, the responsibility for covering the costs of maintenance and repair of common property, alongside managing public liability within common areas, falls on strata companies. There are significant reforms underway regarding shared and community titles in Western Australia.
Strata Insurance South Australia
In South Australia, the task of managing the safety and maintenance of common property rests with strata schemes and community corporations, as per the Strata Titles Act 1988.
