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Strata Insurance

Compare strata insurance brands and get peace of mind for your property.

Looking for strata insurance? As a strata owner or management, you need to find a policy with adequate cover for the building while also fulfilling legal requirements.

Our guide explains what strata insurance is, what it covers, and how you can get it.

What is strata insurance?

Residential strata insurance is the general insurance that covers any commonly used areas within the property. It provides cover for the building and common property that is shared by people living in a townhouse, duplex or set of flats.

It’s basically insurance for areas you share with your neighbours, and the building itself. This includes things like lifts, pools, car parks, gardens, balconies, driveways and swimming pools.

It’s also referred to as body corporate, owners corporation, common property or residential strata insurance.

Strata insurance premiums are usually shared between owners and tenants, often being included in strata fees and liabilities.

Who offers strata insurance?

There are numerous insurance providers within Australia who offer a range of varying strata insurance cover. Strata managers and body corporates often employ a broker or specialist underwriting agency to help negotiate the right cover for their titles.

Here is an outline of a handful of Australian strata insurance providers:

BrandHere's a summary of some of the benefitsHow to get a quote
AAMI logo

Strata insurance

  • Cover up to 10 buildings on the block including shared properties like driveways and stairwells.
  • Temporary accommodation if the unit is owner occupied, and gets damaged up to an unlivable state.
  • Option to take out extra "Shared contents" to cover things like washing machines or shared gym equipment that's not owned by the unit occupier.
By phone: 13 22 44
CHU insurance

Strata insurance

  • Repairs, recovery and replacements are covered from accidental damage, malicious damage and major disasters.
  • Replacement of stolen contents owned by the corporations like lobby furniture.
  • CHU offers commercial strata insurance as well.
Fill out a form here: https://quote.chu.com.au/strata/#/step-1
CGU logo

Residential strata insurance

  • Cover for buildings, common contents and common property.
  • Cover for accidental damage and new-for-old benefit.
  • Option to pay monthly.
By phone: 13 24 81
GIO Logo

Strata insurance

  • Cover for incidents like fire, flood, theft and malicious damage by tenants.
  • Up to $1,000 cover for emergency repairs.
  • Option to cover common contents that are unfixed to the building.
By phone: 13 10 10
QBE Logo

Strata insurance

  • Cover for damages and legal liability.
  • Sold by CHU and underwritten by QBE.
  • 24/7 online claims and emergency assistance.
  • QBE offers commercial strata insurance as well.
Fill out a form here: https://quote.chu.com.au/strata/#/step-1

Do I need strata insurance?

Yes. Strata insurance is mandatory under each state's relevant strata legislation. Just as cars must have a CTP, each strata title owner is required to have sufficient strata insurance.

What does residential strata insurance cover?

Each policy is different and you should check what is covered under your policy. However, strata insurance typically covers the common and/or shared property as defined by the title of the property.Confused as to what this all means? Basically, you’ll be covered for anything your tenants all have access to, such as:

  • Lifts
  • Pools
  • Carparks
  • Gardens
  • Wiring
  • Balconies
  • Walls and windows
  • Ceilings and floors
  • Shared contents (like washing machines, gardening equipment and shared gym equipment)

All policies must provide liability cover in the event of injuries on common property.

Strata Insurance

What doesn't it cover?

Like all insurance policies, it’s the exclusions you need to take equal note of. Different providers include different exclusions, so be sure to read the terms and conditions carefully, as these can often be targeting certain risks, such as flood or landslides. But general exclusions are usually:

  • Fixtures that can be removed without causing damage to the property.
  • Any temporary structures, like caravans, houseboats and motor vehicles.
  • Any carpets, rugs and curtains.
  • Air conditioning units that service a particular unit.
  • Lawns, garden areas, trees or plants in the grounds.
  • Any part of your building used for any business activity unless it’s shown on your certificate of insurance.
  • Personal items and contents (either your own or your tenants’).

What factors can contribute to strata insurance premiums?

Each provider will have specific factors and considerations, but common factors that can affect premiums are:

  • Government taxes on insurance (stamp duty and GST).
  • The age and condition of the building.
  • The replacement cost of the building.
  • The risk profile of the location (such as on a flood plain or high crime area).
  • The claims history of the strata complex.
  • Commercial activities carried out on the premises (holiday letting, community events, etc).
  • Fees and commissions from agents.
  • The costs of common property (such as fire protection systems, lifts and pools).

Adjusting the level of excess payable at the time of a claim is another way of bringing premiums down.

What's the difference between strata insurance and landlord insurance?

Strata InsuranceLandlord Insurance
  • Mandatory.
  • General insurance for building, common property and common contents managed by the strata title.
  • Helps with cost of repairs and rebuilding of common property in the case of a natural disaster (provided it’s not excluded by the policy).
  • Doesn’t include contents inside individual apartments such as blinds, curtains, carpets, light fittings, unwired electrical appliances and personal items.
  • Certain risks not covered, such as landslides and flood, or features like fencing.
  • Non-compulsory
  • Covers tenant related losses such as rent default, or stolen and damaged contents.
  • Policies are designed for strata title owners who are renting out property, helping to pay rent, the cost of repairs and stolen or damaged contents, and more.
  • Doesn’t cover personal possessions and furnishings of owner occupiers or tenants living in the strata property.

What's the difference between residential and commercial strata insurance?

Strata insurance is split into two categories, residential and commercial. Basically, residential is for anyone living in a building and commercial is for any building that’s only used for business purposes.

Both residential and commercial strata properties are required to have the relevant insurance in place. Each state and territory has its own specific terms and conditions needed for strata insurance, and most providers will cater to certain states and strata types.

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