Strata Insurance

Residential and Commercial

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 areas or facilities, with the premiums paid for by the owners’ corporation.

Who should consider it?

Strata insurance is compulsory in every state – so if you’re part of an owners’ corporation in a townhouse, unit, flat, apartment or duplex, the owner’s corporation will need strata insurance. An insurance broker can arrange strata insurance on behalf of the owners’ corporation.

“As a [strata] 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

Did you know?


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 approvals 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 it’s located and the amount of common property you share.

Type of cover Potential benefits
Compulsory covers
Building and common contentsBuilding and common content including equipment, furniture, carpets etc in any common area for which the owners’ corporation is responsible. This can include cover for loss of rent or alternative accommodation due to an insured peril.
Public liabilityIf people are injured on common property.
Optional covers
Personal accident for voluntary workersCompensation to any person injured while carrying out voluntary works on behalf
of the owners’ corporation
Office bearer’s liabilityOffice bearer’s liability For office bearer’s if a claim arising from wrongful acts by the
office bearers.
Fidelity guaranteeLoss arising from misappropriation of funds belonging to the owners’ corporatio
Mechanical and electrical breakdownPhysical damage to machinery or electrical items caused by breakdown.