Strata Insurance at a glance

What is Strata Insurance Policy ?

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.

We can arrange strata insurance on behalf of the owners’ corporation.

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.

Other policies provided within the package;

Type of cover

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 include cover for loss of rent or alternative accommodation due to an insured peril.

Public liability

indemnifies the Body Corporate should it become legally responsible to pay compensation for Personal Injury or Property Damage

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 bearer’s if a claim arising from wrongful acts by the office bearers.

Fidelity guarantee

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

Mechanical and electrical breakdown

Physical damage to machinery or electrical items caused by breakdown

Government Audit Costs and Legal Expenses

Government Audit Costs, provides cover for Professional Fees incurred by You in connection with a Record Keeping AudiT

Appeal Expenses – Common property health and safety breaches

Appeal Expenses – Common property health and safety breaches, provides cover for expenses incurred by You in appealing against an improvement or prohibition notice brought under any workplace, occupational health, safety or similar legislation

Legal Defence Expenses

Legal Defence Expenses, provides cover for expenses You incur in defending actions arising out of the conduct of the Body Corporate’s business, or where they’ve been joined in litigation with another par

Lot Owners’ Fixtures and Improvements


Following Damage under Policy 1 and provided that the Sum Insured under Policy 1 is exhausted, this Policy provides cover up to the Sum Insured in the Schedule for Damage to Lot Owner’s fixtures and structural improvements installed or upgraded by Lot Owners for their exclusive use

Plus many more insurance covers – such as Flood Cover. Ask the Select Insurance broker representative and they will customise a package to suit your needs.

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 won’t include cover for:

  • Asbestos or asbestos derivatives.
  • Erosion or earth movement.
  • Certain property features such as fencing.
  • Contents within apartments

There are other exclusions which your Insurance Broker can outline for you.


Customer 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, the Strata Committee had taken out strata insurance, which was managed by Select 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.

Important note – the information provided here is general advice only and had been prepared without taking into account your objectives, financial situation or needs. A product disclosure statement (PDS) is available from your insurance broker. You should consider the PDS in deciding whether to acquire, or continue to hold, business insurance.

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