If you own a townhouse, unit, or apartment within a shared building, unexpected damage to common areas can create financial strain for all property owners. Living in a strata-managed property means shared responsibility for maintaining and protecting the building’s common spaces.
Having the right protection in place helps ensure that any repairs or damage are covered, safeguarding both the property and its residents from unexpected costs.
What is Strata Insurance?
Strata insurance is designed to protect buildings that are under shared ownership, such as townhouses, units, or apartments and is compulsory in every state. It typically covers common areas like hallways, gardens, roofs, and shared facilities. The insurance provides financial protection against damage, theft, or liability, ensuring that repairs and maintenance costs for the building's shared spaces are covered.
A Strata Insurance policy typically covers you for:
- Buildings, including common contents and common property such as lifts, pools, car parks, gardens, wiring, balconies, walls, ceilings etc.
- Liability (ranges from $5million to $20million) in the event that people are injured on common property
- Fidelity Guarantee
- Officer Bearers’ Liability
- Personal Accident
- Workers Compensation in ACT, WA, TAS and NT
Did you know?
Strata Insurance premiums vary, depending on the level of risk exposure of the area where the building is located.
Insurance Council of Australia: Strata Owners Fact Sheet (2018)
Many strata schemes pay around a third of the premiums of an equivalent stand-alone home policy.
Strata Community Association: Undertsanding Strata (2018)
The costliest strata claims are for storm damage, followed by water and fire damage.
Strata Community Association: Strata Insurance Report (2021)
