Properties under a strata title in Australia such as residential apartments, townhouses, and commercial buildings with shared areas like lobbies, gardens, and pools require Strata Insurance, also known as body corporate insurance, which is a mandatory form of cover.

The policy is typically arranged by the owners corporation (body corporate) and paid for collectively by the unit owners through strata levies. Strata insurance ensures that both the building structure and shared areas are protected from a wide range of risks.

What Does Strata Insurance Cover?
A standard strata insurance policy in Australia generally includes:

Building and Common Area Cover: Protection against damage from events like fire, storm, flood, vandalism, and accidental impact to shared spaces and building infrastructure.
Public Liability: Covers legal costs and compensation if someone is injured on common property.
Contents Cover for Common Property: Includes shared items such as gym equipment, lobby furnishings, or maintenance tools.
Catastrophe Cover: Additional protection for large-scale events like bushfires or cyclones.
Temporary Accommodation or Loss of Rent: If units become uninhabitable due to a covered event.
Office Bearers’ Liability: Covers decisions made by the body corporate that may result in legal claims.
Who Needs Strata Insurance?
Apartment Buildings
Townhouse Complexes
Mixed-use Developments
Commercial Complexes
Any property managed under a strata title
Why It Matters
Strata insurance is not just a legal requirement it’s vital for protecting the investment, safety, and financial well-being of all lot owners. Without it, the costs of rebuilding or legal claims could fall unfairly on individuals.