Home Insurance for Strata Units

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What is a strata unit?

What is strata insurance?

Is strata insurance mandatory?

What other insurance might I need for a strata unit?

How to make a claim for your unit via strata?

How can I compare home insurance?

Long story short

Strata insurance covers the building and shared spaces

Strata insurance looks after the property’s structure and common areas like gardens and driveways. Your share is included in your body corporate fees.

Your personal belongings aren’t covered by strata insurance

Things like couches and laptops inside your unit require your own contents insurance for protection.

Landlord insurance can be a smart move if you’re renting out your unit

Strata insurance covers the building, but landlord insurance protects against tenant damage, unpaid rent, and loss of rent.

What is a strata unit?

Units are self-contained houses that are usually found cozied up next to a few neighbours in a shared complex, although technically (and confusingly!) the term unit can sometimes still refer to a standalone dwelling.  

Unlike standalone houses, units generally belong to a strata scheme, which means some parts of the property – like gardens, driveways, stairwells, or even walls – are shared among all the unit owners. 

Another key difference between units and standalone houses is the upkeep of shared areas. If mowing lawns isn’t your thing, owning a unit in a strata scheme can be heaven-sent, especially if you share a communal garden with your neighbours. That way the body corporate takes care of maintenance – at least of shared areas. Yes, you’ll need to pay body corporate fees, but they usually cover the upkeep and strata insurance (we’ll explain this more in a moment).  

On the other hand, owning a standalone house means the cost of repairs and building insurance – and yes, mowing your own lawn – falls squarely on you.

Why are units covered by strata? 

Strata schemes – also commonly known as ‘strata title’ or simply ‘strata’ – allow individual ownership of a part of the property (your unit, for instance) and shared ownership of common areas.

If you buy into a strata, you’re part of the owners’ corporation (also known as the body corporate). They’re the ones who handle the finances of the strata scheme, organise the strata insurance, and manage the shared common areas of the property.

Communal property includes all those areas in a strata scheme that aren’t part of an individual unit. Here’s a quick list of what usually falls into this category:

parking spaces and car shelters like garages, carports, vehicle bays

decks, patios, porches, terraces

outbuildings like sheds and garden shelters

swimming areas like pools and spas

driveways, sealed roads, paved roads, entryways   

walls (including retaining walls), fences and gates 

outdoor fixtures permanently fixed within the strata boundaries. 

Here’s an easy way to look at it: If it’s shared by the building or within the complex, it’s probably part of common property. 

What is strata insurance?

Think of strata insurance as building insurance but for a shared property complex. It’s organised and paid for by the owners’ corporation, with everyone chipping in through strata levies (aka body corporate fees). This means you generally don’t need to worry about taking out separate building insurance for your unit – your body corp’s got you. 

The levies don’t just cover the insurance, either. Your contributions also help fund things like landscaping, fixing that dodgy light in the hallway, or keeping the communal pool sparkling clean.  

Strata insurance isn’t just for units either; it can take care of any type of shared property under a strata scheme, such as an apartment building or a complex of townhouses. 

Fixtures like taps or light fittings might be a bit of a grey area. That’s why it’s always worth checking your policy – strata alongside contents or landlord insurance (if you have them) – to understand your coverage. 

Helpful tip

A good way to think about strata insurance is that it doesn’t go past your front door. Everything inside your unit that’s not fixed to the building – with the exception of a few obviously fixed things like the stove, toilet, or bathtub – might need to be covered separately.  

If you’re living there, contents insurance is a smart way to make sure your prized possessions are covered. If you’re renting your unit out, landlord insurance can save you a lot of hassle when tenant dramas pop up. 

Adrian Bennett

General Manager for General Insurance

Is strata insurance mandatory?

Strata insurance is mandatory for strata properties in all Australian states and territories. This ensures cover for repairs to shared property and public liability in communal areas. 

Keep in mind, though, that the details of what’s covered can vary depending on where you are. For example, in New South Wales, strata doesn’t cover wallpaper and paint. Meanwhile, in Queensland, air conditioners are usually a no-go.

What other insurance might I need for a strata unit?

While strata insurance covers a lot, it doesn’t cover everything. Depending on your situation, you may also want to consider contents insurance, landlord insurance or additional cover for any fancy renovations you’ve done (how good’s that heated flooring!)

How to make a claim for your unit via strata?

While different insurers may have different processes, here’s how sorting out a strata insurance claim might look:

Work out who’s responsible

Start by figuring out what’s covered by your body corp’s strata insurance and what’s on you. Strata usually takes care of the building and common areas, but anything like your personal belongings or flashy upgrades will need to be sorted under your own insurance. 

Assuming the damage is covered by strata insurance… 

Review the policy

Get your hands on your complex’s strata insurance policy (just ask your body corporate for a copy). Claims can fall into different categories like public liability or legal expenses. Every policy has its quirks, so have a good squiz to understand what’s covered. 

Determine who’s at fault

If someone else caused the damage you can lodge a claim under the right policy (strata or your own contents insurance). The insurer will usually chase the person responsible for the costs, but don’t worry, they won’t go after your neighbours or other lot owners in the strata. 

Lodge your claim

Report the damage to your strata manager or body corporate. Like any insurance claims, it’s a good idea to have proof, so snap photos, take videos, and collect all the info you can. If other units are impacted too, you might even bundle it into one claim to save on excess costs. 

Bring in the experts if you need to

If things get messy or there’s some confusion over the damage, your body corporate can call in an assessor. They’ll look over the situation and make sure the insurer gets the full picture. 

Keep the ball rolling

Filing the claim isn’t the end of the job. Stay in touch with your strata manager or the insurer to keep things moving and provide anything else they might need to finalise the claim and get any required repairs all sorted.

How can I compare home insurance?

When it comes to insurance, strata’s got the shared spaces sorted – but the rest is on you. Think of it as a weekend barbie at your neighbour’s. Your body corp takes care of the sausages, but you’ve got to bring the buns (and maybe the desserts, too). Whether it’s your treasured belongings or managing tenant hurdles, having adequate cover might mean thinking about extra insurance.  

While we can’t help you with strata insurance, we’re here to help you compare contents insurance and landlord cover options. You can use the iSelect comparison tool to easily compare a range of home insurance policies.