Introduction: What Is Strata Insurance?

Strata insurance (also known as body corporate insurance) is a mandatory insurance policy that protects the building structure and common property of strata-titled properties in Queensland. It is arranged by the body corporate and applies to apartments, townhouses, units, duplexes and mixed-use developments.

If you own or manage a strata property, understanding strata insurance is critical, not only for compliance but also to avoid significant financial risk.

Learn more about working with a specialist Strata Insurance Broker in Queensland

What Types of Properties Need Strata Insurance?

Strata insurance is required for properties registered under a strata title or community title scheme, including:

• Apartment buildings
• Unit complexes
• Townhouse developments
• Duplexes and triplexes (if strata titled)
• Mixed-use buildings (residential + commercial)

If multiple owners share ownership of common property, strata insurance is almost always required.

Is Strata Insurance Mandatory in Queensland?

Yes. Under the Body Corporate and Community Management Act 1997 (Qld), bodies corporate must hold:

• Building insurance for full replacement value
• Public liability insurance (minimum $10 million)

Failure to comply can expose the body corporate and committee members to legal and financial consequences.

What Does Strata Insurance Cover?

Strata insurance generally covers everything outside your personal belongings.

Building & Common Property

• Walls, floors and roofs
• Windows, balconies and stairwells
• Lifts, foyers and hallways
• Shared pools, gyms and car parks

Insured Events

• Fire and explosion
• Storm, hail and wind damage
• Water damage (subject to policy terms)
• Impact and vandalism

Liability Protection

• Public liability claims
• Injury or property damage on common property

Additional Optional Covers

• Machinery breakdown (e.g. lifts, pumps)
• Temporary accommodation or loss of rent
• Catastrophe and emergency costs
• Committee member (office bearers) liability

What Does Strata Insurance NOT Cover?

Strata insurance does not cover:

• Furniture or personal belongings
• Contents inside individual lots
• Owner-installed fixtures (in some cases)
• Wear and tear or poor maintenance

Lot owners should arrange contents insurance or landlord insurance separately.

Who Pays for Strata Insurance?

Strata insurance is paid by the body corporate and funded through strata levies. Each owner contributes based on their lot entitlement.

Rising building costs and extreme weather risks have increased strata insurance premiums across Queensland.

Read our expert tips on How to Reduce Strata Insurance Premiums

How Much Does Strata Insurance Cost in Queensland?

There is no fixed cost. Premiums depend on:

• Building replacement value
• Location and weather exposure
• Claims history
• Number of lots
• Construction materials

Premiums can range from a few thousand dollars per year to significantly higher for large or high-risk buildings.

What Happens When There Is a Strata Insurance Claim?

When damage occurs in a strata property, the claims process is typically managed through the body corporate and can involve multiple parties. Understanding how this works early can help prevent delays, disputes and unexpected costs.

A typical strata insurance claim involves:

1. Reporting the damage
   Damage should be reported as soon as possible to the strata manager or body corporate, who will determine whether the issue relates to common property or an individual lot.

2. Lodging the insurance claim
   The claim is lodged with the strata insurer, usually by the strata manager or a specialist strata insurance broker acting on behalf of the body corporate.

3. Assessing responsibility
   The insurer assesses whether the damage falls under strata insurance or an owner’s contents or landlord policy. This step is critical in claims involving water damage, fire or shared services.

4. Repair, settlement or recovery
   Approved claims result in repairs being arranged or a settlement being paid. In some cases, recovery action may be taken against a responsible party.

Strata insurance claims can quickly become complex, particularly where water damage, maintenance issues or building defects are involved. Having a broker manage the claim helps ensure it is handled correctly, efficiently and in the best interests of the body corporate.

Why Use a Specialist Strata Insurance Broker?

Strata insurance is highly technical and varies between insurers. A specialist broker:

• Ensures QLD legislative compliance
• Accesses multiple insurers
• Negotiates better premiums and coverage
• Assists with complex claims
• Avoids underinsurance risks

FAQs

Does strata insurance cover water damage?

Yes, if caused by an insured event. Gradual leaks or maintenance issues may be excluded.

Is strata insurance the same in every state?

No. Requirements vary by state. This guide applies specifically to Queensland.

Do I need strata insurance for a duplex?

Only if it is strata titled. Otherwise, a different policy may apply.

Final Thoughts

Strata insurance protects one of the largest shared assets owners have, the building itself. Understanding how it works, what it covers, and how it’s managed helps avoid disputes, uninsured losses and costly mistakes.

For expert advice tailored to your building:

Contact Morgan Insurance Brokers, Queensland strata insurance specialists.