The basics of strata insurance explained

A strata title is a type of property ownership. It means you have individual ownership of a ‘lot’ in a subdivision or building complex. In a residential strata property, areas such as a driveway, garden, tennis court or BBQ might be common areas, meaning they’re collectively owned by all the individual lot owners. Common residential strata properties can include:

• townhouses and villas
• units and flats
• apartments
• terrace houses.

A strata property may also have common area contents, for example, outdoor furniture, equipment in a community gym, washing machines and dryers in a shared laundry room, as well as paintings, carpets and furnishings in an apartment lobby or hallway.

Strata insurance (also called Residential Strata Insurance) is insurance that helps cover strata-managed complexes and properties. Similar to a home building and contents insurance policy, it can cover damage to the property and common contents caused by flood, storm, or fire. There’s also the option to add cover for things like machinery breakdown (like if an elevator or heater is damaged during normal use) or motor burnout cover, which can help cover the cost to repair or replace an appliance or fixture (like an air-conditioning unit or washing machine) that fails due to electrical burnout.

Like many laws and regulations in Australia, strata insurance regulations differ by state and territory — frustrating, we know! Usually, though, it will either be the property’s body corporate/owners corporation who is responsible for taking out strata insurance, or the task could rest with a strata company or property manager.

Because you could be reading this from, well, anywhere in Australia, we thought it might be a good idea to collate some key links to help you learn more about the strata regulations and other legislation applicable to your state or territory. 

Queensland

qld.gov.au | Insuring buildings and common property under other Acts

New South Wales

nsw.gov.au | Managing strata finances and insurance

South Australia

sa.gov.au | Strata titles

Western Australia

wa.gov.au | Project 56 - The Strata Titles Act

Tasmania

nre.tas.gov.au | Strata Living in Tasmania  

Victoria

consumer.vic.gov.au | Owners corporations (formerly body corporate)

Northern Territory 

nt.gov.au | Dealing with a body corporate