Strata insurance protects the building and common area's of facilities

What is Strata Insurance ?

If you own a townhouse, unit or apartment and you’re  sharing common space with others, you don’t want to be left to foot the bill if there’s damage to shared parts of the building or items.

Strata insurance protects the building and common area’s of facilities with the premiums paid for by the owner’s operation.

Who should consider it ?

Strata insurance is compulsory in every state – so if your part of an owner’s corporation in a townhouse unit, flat apartment or duplex, the owner’s corporation will need start insurance.

We can organise this on behalf of the owner’s corporation.

As a owner, you also have a share of an unlimited liability for anything that goes wrong, which is why strata insurance is compulsory in every state and territory

( Strata Community Association )

Strata Insurance premiums vary, depending on the level of risk exposure of the area where the building is located. (Insurance Council of Australia , Strata Owners  fact sheet , 2018) 


According to the insurance council of Australia, many strata schemes pay around a third of the premiums of an equivalent stand-alone home policy. (Strata Community Association understanding Strata , 2018)


The number of apartments in Australia is increasing – with a 30.6 % rise in apartment approvals predicted in November 2017. (ABC website ” Apartment boom continues as development approval jump” 2018)

What Can it Cover?

Strata Insurance can cover the building and all common or shared property, and contents which belong to the owners’ corporation.The type of cover and its cost will depend on the kind of building, where its located and the amount of common property you share.

Type of Cover

Compulsory Covers

Potential Benefits

Building and Common contents

Building and common content  including equipment, furniture carpets etc in any common area for which the owners’ corporation is responsible . This can be include cover for loss of rent or alternative accommodation  due to an insured peril.

Public Liability

If people are injured on common property.

Optional Covers

Personal Accident for Voluntary Workers

Compensation to any person injured while carrying out Voluntary works on behalf of the owners’ corporation’

Office bearer’s Liability

For office bear’s if a claim arising from wrongful acts by the office bearer’s

Fidelity Guarantee

Loss arising from misappropriation of funds belonging to the owners’ corporation.

Mechanical & Electrical breakdown

Physical  damage to machinery or electrical  items caused by breakdown.

What Usually Isn't Covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally wont include cover for the for following:

  • Asbestos or Asbestos derivatives
  • Erosion or Earth Movement
  • Certian Property features such as fencing
  • Contents within Apartments

Case study

Ken owned a studio apartment on the fifth floor of an inner- city apartment block. One day the lift broke down because a fire occurred in the fuse box.

Fortunately, Ken and the other members of the strata committee had taken out Strata insurance, Which was managed by an insurance broker..

The repairs were carried out and the cost was covered by their policy, which meant that none of the strata members were out of pocket as a result.

A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire or continue to hold, business insurance.

Important note: This information is provided to assist you in understanding the terms, implications and common considerations with this type of insurance. It does not constitute advice, and is not complete, so please discuss the full details with us.

Get in Touch Today to see how we can help.