Compare strata insurance (body corporate insurance) from Australia's leading providers side by side. Cover for common property, shared areas and liability. Mandatory in most states. 100% free.
A guide to how strata insurance works in Australia, who needs it, and why it is typically mandatory under state legislation.
Strata insurance - also known as body corporate insurance - is a specialised insurance product that covers the common property and shared areas of strata-titled properties. This includes apartment buildings, townhouse complexes, unit blocks, and any other property governed by a strata scheme or owners corporation.
The key distinction between strata insurance and standard home insurance is what is being covered and who arranges it. Strata insurance protects the building structure and common areas collectively owned by all lot owners, while home or contents insurance protects an individual owner's belongings and any improvements within their own lot. The body corporate (or owners corporation) arranges and pays for strata insurance using funds collected through owner levies.
In most Australian states and territories, strata insurance is mandatory under legislation. For example, the Strata Schemes Management Act 2015 (NSW) requires the owners corporation to insure the building for full replacement value. Similar requirements exist under the Owners Corporations Act 2006 (VIC), the Body Corporate and Community Management Act 1997 (QLD), and equivalent legislation in other states.
The strata insurance market in Australia is served by both specialist providers and major general insurers. CHU Underwriting Agencies (part of the Steadfast Group) is Australia's largest strata insurance specialist, insuring over 100,000 strata schemes. Major insurers including QBE, Allianz, and Suncorp also offer strata products.
For a broad overview of insurance in Australia, the MoneySmart home insurance guide is a useful starting point. The Australian Financial Complaints Authority (AFCA) provides free dispute resolution for insurance complaints, and the Australian Securities and Investments Commission (ASIC) regulates financial services including insurance.
Key point: Strata insurance covers common property only - not the contents of individual lots. Lot owners are responsible for arranging their own contents insurance and may also want cover for any improvements or renovations they have made within their lot. The body corporate is legally obligated in most states to maintain adequate building insurance, and failure to do so can expose committee members to personal liability.
Strata insurance is typically structured with several layers of cover. Here are the main components commonly available.
The core component of strata insurance. Covers the physical building structure, including walls, roofs, floors, ceilings, fixtures, and any permanent improvements to common property. Insures against fire, storm, flood, impact damage, and other defined events. Required by law in most states to be insured for full replacement value.
Extends beyond the building structure to cover shared facilities and assets owned collectively by all lot owners. This includes swimming pools, gyms, lifts, car parks, gardens, fencing, pathways, and any shared equipment or furnishings in common areas such as lobbies and stairwells.
Protects strata committee members and office bearers from personal liability arising from decisions made in their official roles. Covers legal defence costs, settlements, and judgments if a committee member is sued for alleged negligence, errors, or omissions in managing the strata scheme.
Provides personal accident cover for volunteers who carry out work on behalf of the body corporate - such as gardening, cleaning common areas, or minor maintenance. Covers medical expenses and income replacement if a volunteer is injured while performing duties for the strata scheme.
Protects the body corporate against financial loss caused by fraudulent or dishonest acts by committee members, strata managers, or other persons entrusted with strata funds. Covers misappropriation of levies, sinking fund money, or other body corporate assets.
An optional cover that protects renovations, upgrades, and improvements individual lot owners have made within their own lot - such as kitchen or bathroom renovations, built-in wardrobes, or upgraded flooring. Without this cover, these improvements may not be included in the strata policy's sum insured.
The right strata insurance depends on the size of the scheme, building type, location, and the specific risks facing the property.
Each Australian state and territory has its own strata legislation governing insurance obligations for owners corporations.
| State/Territory | Key Legislation | Insurance Required? | Notes |
|---|---|---|---|
| New South Wales | Strata Schemes Management Act 2015 | Yes - Mandatory | Building must be insured for full replacement value. Workers compensation and public liability also required. Owners corporation must take out insurance within 14 days of registration. |
| Victoria | Owners Corporations Act 2006 | Yes - Mandatory | Owners corporation must insure the common property. Requirements vary by tier (based on number of lots and annual fees). Public liability insurance also required for larger schemes. |
| Queensland | Body Corporate and Community Management Act 1997 | Yes - Mandatory | Body corporate must insure the building for full replacement value. Public risk insurance required. Fidelity guarantee also required for schemes with a body corporate manager. |
| South Australia | Strata Titles Act 1988 | Yes - Mandatory | Strata corporation must insure the building and common property. Public liability insurance also required. |
| Western Australia | Strata Titles Act 1985 | Yes - Mandatory | Strata company must insure common property for replacement value. Public liability insurance also required. Reforms under the updated Act introduced additional requirements. |
| Tasmania | Strata Titles Act 1998 | Yes - Mandatory | Body corporate must insure the building for replacement value. Public liability insurance required. |
| ACT | Unit Titles (Management) Act 2011 | Yes - Mandatory | Owners corporation must insure common property for replacement value. Public liability and fidelity guarantee insurance also required. |
| Northern Territory | Unit Titles Act 1975 / Unit Title Schemes Act 2009 | Yes - Mandatory | Body corporate must insure the building. Insurance requirements set out in the legislation and body corporate rules. |
An in-depth look at Australia's leading strata insurance providers, based on publicly available policy documents, features, and market position.
CHU is Australia's largest specialist strata insurance underwriter, part of the Steadfast Group. They insure over 100,000 strata schemes across Australia and have been operating for over 45 years. CHU's policies are tailored specifically for strata, covering building, common property, office bearers liability, voluntary workers, fidelity guarantee, and machinery breakdown. Their specialist focus means they understand the unique risks facing strata schemes better than most generalist insurers.
QBE is one of Australia's largest general insurers and offers comprehensive strata insurance products. Their strata policy covers building, common property, public liability, office bearers liability, and fidelity guarantee. QBE has a strong claims network across Australia and provides dedicated strata claims handling teams. Their broad product range also allows bundling with other insurance needs.
Allianz is a global insurer with a strong Australian presence, offering strata insurance that covers building structure, common property, liability, and a range of optional extras. Allianz provides flexible policy options with adjustable limits and excesses, and their global scale means strong financial backing for large or complex claims.
CGU is part of Insurance Australia Group (IAG), one of Australia's largest general insurance groups. CGU offers strata insurance primarily through its broker network, providing cover for building, common property, liability, office bearers, and fidelity guarantee. Their broker-focused distribution model can suit larger or more complex strata schemes that benefit from professional advice.
Suncorp is one of Australia's largest general insurance groups, offering strata insurance products that cover building, common property, public liability, and office bearers liability. Suncorp has a strong presence in Queensland and northern Australia, where natural hazard exposure is a significant factor in strata insurance. Their broad claims network and established reputation may appeal to body corporates seeking a well-known insurer.
A breakdown of the cover components commonly included in Australian strata insurance policies.
| Cover Component | What It Includes | Typical Limits |
|---|---|---|
| Building structure | Walls, roof, floors, ceilings, fixed fixtures, common area finishes. Covers damage from fire, storm, flood, impact, explosion, and other insured events. | Full replacement value (set by body corporate) |
| Common property | Shared facilities including pools, gyms, lifts, car parks, gardens, fencing, pathways, driveways, and common area furnishings. | Included in building sum insured |
| Public liability | Claims by third parties (residents, visitors, tradespeople) for injury or property damage occurring on common property. | $10 million - $20 million |
| Office bearers liability | Legal defence costs and settlements for committee members sued for decisions made in their official capacity. | $2 million - $10 million |
| Voluntary workers cover | Personal accident cover for volunteers performing work for the body corporate - gardening, cleaning, minor repairs. | Varies by policy |
| Fidelity guarantee | Loss of body corporate funds through fraud or dishonesty by committee members, strata managers, or entrusted persons. | $50,000 - $500,000+ |
| Glass breakage | Replacement of glass in common property windows, doors, skylights, balustrades, and other fixed glass panels. | Usually included without sub-limit |
| Machinery breakdown | Breakdown of lifts, air conditioning systems, pumps, hot water systems, and other mechanical or electrical plant. | Optional - varies by policy |
| Lot owner improvements | Renovations and upgrades made by individual lot owners within their units - kitchen, bathroom, flooring, built-ins. | Optional - typically $20,000 - $100,000 per lot |
| Legal expenses | Costs of legal proceedings arising from insured events, including recovery actions and defence of claims. | Varies - often included within liability limits |
Understanding what is not covered is just as important as knowing what is. These are the most common exclusions across Australian strata policies.
Normal ageing of the building, gradual deterioration, rust, corrosion, rot, mould (unless from a sudden insured event), and general maintenance issues. The body corporate is expected to maintain the building in a reasonable state of repair as part of its ongoing obligations.
Slow leaks, seepage, or water damage that occurs over weeks or months rather than from a sudden event. Many strata claims involve water damage, but policies typically distinguish between sudden pipe bursts (covered) and gradual seepage or deterioration of waterproofing (not covered).
Deliberate or intentional damage caused by the body corporate, its committee members, or lot owners. This includes damage resulting from knowingly failing to maintain the building or ignoring known defects.
Planned or routine asbestos removal is generally excluded. However, if asbestos removal becomes necessary as a direct result of an insured event - such as a fire or storm damaging asbestos-containing materials - the cost may be covered. Check the specific policy wording.
Strata insurance does not cover the personal belongings, furniture, or contents of individual lot owners. Each lot owner needs their own contents insurance. This is one of the most common misunderstandings about strata cover.
Damage caused by defective design, faulty materials, or poor workmanship. If a building defect leads to damage (for example, defective waterproofing causing leaks), the resulting damage may be excluded. Building defect claims are typically pursued against the builder or developer.
Some policies exclude or limit cover for subsidence, landslip, or earth movement unless caused by an insured event such as an earthquake. Check the policy wording carefully, particularly for buildings on sloping sites or in areas with known land stability issues.
Indirect losses such as reduced property values, loss of rental income for individual lot owners, or business interruption for commercial tenants. The strata policy covers direct physical damage to common property - not broader economic impacts on lot owners.
Understanding these factors can help the body corporate find better value when comparing estimates.
Older buildings typically attract higher premiums due to increased risk of building-related claims (plumbing failures, electrical faults, structural issues). Well-maintained buildings with up-to-date wiring, plumbing, and waterproofing may receive more favourable pricing.
Construction materials significantly affect risk. Timber-framed buildings generally cost more to insure than concrete or brick. Buildings with combustible cladding (a significant issue since the Grenfell and Lacrosse building fires) may face higher premiums or restricted cover options.
Location is one of the largest pricing factors. Buildings in cyclone-prone areas of North Queensland, flood zones, bushfire-risk areas, or coastal regions exposed to storm surge attract significantly higher premiums. The Insurance Council of Australia publishes information on natural hazard risk.
A history of frequent claims - particularly water damage or storm claims - will increase premiums. Some insurers may decline to quote on buildings with poor claims records. A clean claims history over several years can work in the body corporate's favour.
The higher the replacement value of the building, the higher the premium. Ensuring the sum insured is accurate (not too high or too low) is critical. Underinsurance can lead to proportional claim settlements where the insurer only pays a percentage of any claim.
Larger schemes with more lots generally have higher premiums in absolute terms, but the per-lot cost may be lower due to economies of scale. More lots also mean more potential sources of claims, particularly water damage from internal plumbing.
Buildings with security cameras, intercom systems, secure access points, and on-site caretakers may receive discounts. These features reduce the risk of theft, vandalism, and unauthorised access to common areas.
Insurers may assess the building's maintenance history and sinking fund (capital works fund) adequacy. A well-funded sinking fund and a proactive maintenance program demonstrate that the body corporate is managing risks effectively, which may be reflected in pricing.
Indicative annual premiums for strata insurance in Australia, based on building size and risk profile.
Disclaimer: All costs shown are indicative estimates as of early 2026. Strata insurance premiums vary enormously depending on building size, location, construction, sum insured, and claims history. The cost per lot can range from a few hundred dollars per year for a small townhouse complex in a low-risk area to several thousand dollars per lot for a large building in a cyclone zone. Always obtain multiple estimates and consider using a specialist strata insurance broker.
Practical approaches the body corporate can take to manage strata insurance costs without compromising essential cover.
Obtain a professional replacement cost valuation every 3-5 years and adjust the sum insured in between using a building cost index. An accurate sum insured avoids both underinsurance (risking proportional claim settlements) and overinsurance (paying more premium than necessary).
Install or upgrade security features such as CCTV cameras, secure intercom systems, swipe card access, and adequate lighting in common areas. These measures reduce risk and may attract premium discounts from some insurers.
A proactive maintenance program reduces the likelihood of claims - particularly water damage, which is one of the most common strata claim types. Ensure plumbing, waterproofing, roofing, and electrical systems are regularly inspected and maintained.
Do not auto-renew without checking the market. Obtain estimates from at least three providers or use a specialist strata insurance broker. Premiums can vary significantly between insurers for the same building. CHU, QBE, Allianz, and other providers are worth comparing.
Increasing the standard excess can reduce the annual premium. The body corporate should weigh the savings against the higher out-of-pocket cost at claim time. Ensure the sinking fund or administrative fund can absorb the excess if a claim occurs.
A well-funded capital works (sinking) fund demonstrates to insurers that the body corporate is financially responsible and can maintain the building. Some insurers may look more favourably on schemes with adequate long-term maintenance planning.
Changing strata insurance providers can potentially save the body corporate money. Here is how the process typically works.
Begin obtaining estimates 4-6 weeks before the renewal date. This gives the strata committee enough time to review options and put the decision to a vote if required. A strata insurance broker can streamline this process.
Ensure estimates include the same cover levels - building sum insured, liability limits, office bearers cover, fidelity guarantee, and any optional extras. A cheaper policy with lower limits may not provide adequate protection for the scheme.
Present the comparison to the strata committee or at a general meeting. The body corporate must approve the decision to change insurers. Provide a clear summary of the differences in cover, excess, and premium.
Set the new policy to start on the same day the old policy expires. Confirm the start date in writing with the new insurer and cancel the old policy on renewal. Never leave a gap in strata insurance cover.
A step-by-step guide to the strata insurance claims process in Australia.
Report the damage or incident to the strata manager (or the body corporate secretary if the scheme is self-managed) as soon as possible. The strata manager will coordinate the insurance claim process on behalf of the body corporate.
Take photographs and video of all damage before any clean-up or temporary repairs. Keep written records of the date and time of the incident, what happened, and any witnesses. Preserve any evidence that may support the claim.
The strata manager or an authorised committee member lodges the claim with the insurer, providing documentation, photos, and details of the incident. Most insurers have dedicated strata claims teams that understand the specific requirements of body corporate claims.
The insurer will typically arrange for a loss assessor to inspect the damage. For larger claims, a specialist assessor may be appointed. Do not begin permanent repairs until the assessor has inspected the damage and the insurer has provided authorisation, unless emergency repairs are needed to prevent further loss.
Once the claim is approved, the insurer will arrange payment (minus the excess) or organise repairs directly. The body corporate is responsible for paying the excess, which may be recovered from an individual lot owner if the damage originated from their lot. Check the by-laws and policy wording regarding excess recovery.
Key regulations, bodies, and considerations specific to strata insurance in Australia.
Strata legislation varies significantly across states. NSW uses the Strata Schemes Management Act 2015, Victoria has the Owners Corporations Act 2006, and Queensland operates under the Body Corporate and Community Management Act 1997. Insurance obligations, dispute resolution processes, and reporting requirements differ in each jurisdiction.
Strata managers (also called body corporate managers or managing agents) are often appointed by the body corporate to handle day-to-day administration, including arranging insurance. They may have relationships with particular insurers or brokers. The body corporate should ensure the strata manager obtains competitive quotes and that the chosen policy meets the scheme's needs - not just the manager's preferred provider.
The body corporate has a legal obligation in most states to maintain adequate insurance for the common property. Committee members who fail to arrange proper insurance may be personally liable for losses. This includes ensuring the sum insured reflects the full replacement cost, that public liability limits are adequate, and that the policy is renewed on time.
If a dispute with the strata insurer cannot be resolved directly, the Australian Financial Complaints Authority (AFCA) provides free external dispute resolution. All ASIC-licensed insurers must be AFCA members. For disputes between lot owners and the body corporate about insurance decisions, the relevant state tribunal (such as NCAT in NSW) may also assist.
Australia does not have a government-backed natural disaster insurance scheme. Strata insurers cover all natural perils directly - including cyclone, flood, bushfire, storm, and earthquake. In high-risk areas (particularly North Queensland), premiums can be several times higher than in low-risk metro areas. The Insurance Council of Australia provides resources on natural hazard mitigation.
Strata insurance is regulated by the Australian Securities and Investments Commission (ASIC), which oversees financial services including insurance. The Australian Prudential Regulation Authority (APRA) oversees the financial strength and stability of insurance companies. All insurers must hold an Australian Financial Services Licence (AFSL).
The Product Disclosure Statement is the legal document that defines exactly what your strata policy covers and excludes.
Strata insurance PDS documents contain specific sections that the body corporate committee should review carefully:
Strata policies often contain sub-limits that cap the payout for specific types of claims:
Strata policies often have multiple excess levels that apply in different situations:
Given Australia's exposure to natural hazards, the catastrophe cover in a strata PDS is particularly important:
Common questions about strata insurance in Australia.
Key terms used in strata insurance policies, explained in plain language.
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