High-End Apartment Living: Why Luxury Strata and Building Insurance Matters

Sydney’s skyline is dotted with world-class luxury apartments and penthouses, offering residents the very best in design, lifestyle, and location. From waterfront residences in Darling Point to sky-high penthouses in Barangaroo, prestige apartment living comes with unique benefits — but also unique insurance needs.

Many high-net-worth apartment owners assume that their strata fees cover everything. Unfortunately, this is a costly misconception. Strata insurance generally only protects the building’s common property and shared areas — not your bespoke interiors, luxury finishes, or valuable collections inside your home.

This guide explains what high-end apartment owners need to know about strata and building insurance, and how to make sure your property is properly protected.

What Does Strata Insurance Cover?

By law, strata corporations must take out insurance for:

• The building structure – walls, roof, foundations, lifts, and common services.

• Common areas – foyers, pools, gyms, car parks, and landscaping.

• Public liability – covering injuries on shared property.

At first glance, this seems comprehensive. But there’s a critical gap: strata insurance usually stops at the apartment’s front door.

What Strata Insurance Doesn’t Cover

For high-end apartment owners, these gaps are significant:

• Luxury fit-outs – imported stone kitchens, bespoke joinery, wine cellars, or custom lighting.

• Upgrades beyond the developer’s standard – strata usually only covers the base build, not enhancements.

• Personal contents – furniture, artwork, jewellery, designer wardrobes.

• Accidental damage – such as spilling wine on a silk rug or scratching a marble benchtop.

• Alternative accommodation – living elsewhere while your apartment is being repaired.

This means that if a fire, flood, or burst pipe damages your penthouse, the strata policy may only rebuild it to “standard” condition — not the luxury standard you invested in.

Why High-End Apartments Need Specialist Insurance

Prestige apartments often feature:

• Imported finishes and fittings

• Custom-designed interiors

• Fine art and collectible wine or jewellery

• State-of-the-art technology and home automation

The replacement cost for these assets can run into hundreds of thousands — well beyond strata or standard contents policies.

Specialist high-net-worth insurance policies ensure that:

• Your home is reinstated to its true luxury standard

• High-value contents are fully covered without restrictive sub-limits

• New acquisitions (art, jewellery, furniture) are automatically included

• You receive like-for-like alternative accommodation if your home becomes uninhabitable

Case Example: The Penthouses of Sydney

A penthouse owner in Bondi suffered severe water damage when a burst pipe flooded multiple levels. Strata covered the building repairs but would only reinstate the apartment’s kitchen with developer-standard finishes. The owner had imported marble benchtops and custom cabinetry worth over $250,000 — which would have been lost without additional cover.

How Clarke Lyons Can Help

At Clarke Lyons, we specialise in protecting Sydney’s luxury homes and apartments. Our tailored policies provide:

• Full replacement value for your high-end fit-outs and renovations

• Worldwide cover for jewellery, watches, and art collections

• Access to prestige insurers who understand the high-net-worth market

• Claims advocacy to ensure you receive the settlement you deserve

Final Thoughts

High-end apartment living offers a lifestyle of sophistication, security, and convenience. But without the right insurance, you risk losing the very features that make your residence unique.

With Clarke Lyons, you’ll have peace of mind knowing your apartment — and everything inside it — is properly protected, no matter what happens.

Contact Clarke Lyons today to discuss tailored insurance for your luxury apartment.