Strata Insurance Brokers Australia – Clarke Lyons Insurance

Protect your strata building, shared property and owners corporation with insurance arranged around your scheme’s needs.

Clarke Lyons Insurance helps strata owners, committees and property managers across Australia compare cover, understand policy conditions and arrange strata insurance. From small residential blocks to larger complexes, we provide insurance broking advice, transparent fee and commission information, and claims support.

Request a strata insurance quote from Clarke Lyons Insurance.

What Is Strata Insurance?

Strata insurance covers insured damage to buildings and shared property within a strata scheme, together with specified liability risks. It is usually arranged by the owners corporation or body corporate on behalf of the scheme.

Also called body corporate insurance or owners corporation insurance, it can cover more than communal areas. Depending on the applicable legislation and policy, insured building property may include fixtures within individual apartments or lots.

An owner’s furniture, personal belongings and rental risks require separate consideration. Owning an apartment in an insured building does not mean every aspect of your property is covered.

What Can Strata Insurance Cover?

The policy schedule, wording and endorsements determine the cover purchased. Features differ between insurers, and some sections are optional.

Building and common property: Insured damage to structures and shared assets, such as roofs, stairwells, lifts and communal facilities.

Public liability: Specified legal liability for third-party injury or property damage.

Common-area contents: Scheme-owned items in shared spaces.

Office bearers’ liability: Certain claims arising from wrongful acts committed by committee members when performing their duties.

Machinery breakdown: Eligible breakdown of insured equipment, where included.

Fidelity cover: Certain losses involving misappropriation of scheme funds.

Loss of rent or temporary accommodation: Benefits following insured damage that makes a residence uninhabitable, subject to limits and conditions.

These features are not automatically included in every policy.

Is Strata Insurance Compulsory in Australia?

Australian strata schemes have insurance obligations under their relevant state or territory legislation. The requirements depend on the jurisdiction, scheme structure and any applicable exemptions.

For example, NSW Government guidance specifies a minimum $20 million public liability limit and explains building insurance obligations and exemptions for certain two-lot schemes. That NSW liability requirement should not be treated as a national minimum.

Before arranging cover, establish:

Which legislation applies to the scheme.
What buildings and property the scheme must insure.
The required liability cover and other compulsory insurance.
Whether any exemption actually applies.
Whether the proposed policy meets the scheme’s obligations.

A duplex or small townhouse development should not assume it is exempt simply because it has few owners.

Residential, Commercial and Mixed-Use Strata Insurance

A building’s use matters when choosing strata insurance.

Residential strata schemes may include apartments, units, townhouses and villas. Relevant details include shared facilities, building construction, short-term letting and occupancy.

Commercial strata schemes may contain offices, shops, warehouses or industrial units. Insurers need an accurate description of the activities undertaken within the property.

Mixed-use developments combine residential and commercial occupancy. A building with apartments above a restaurant presents different insurance considerations from a wholly residential complex.

Provide details of every occupancy when requesting a quote. Changes in use should also be raised with your broker.

How Much Should Your Strata Building Be Insured For?

The building sum insured should reflect an appropriate reconstruction assessment. A property’s sale price, council valuation or combined apartment values should not be used as a substitute.

When arranging an insurance valuation, ask how the assessment addresses:

Demolition and removal of debris.
Construction and materials.
Professional and consultant fees.
Applicable rebuilding requirements.
Site access and construction constraints.
Cost increases during the rebuilding period.
Relevant tax treatment.

A valuation also needs to be interpreted alongside the policy: some expenses may sit within the building sum insured, while others may have separate limits.

Review the assessment when substantial improvements, new facilities or other material changes affect the property.

Does Strata Insurance Cover Water Damage?

Strata insurance may cover water damage, but the cause of the damage and the policy wording are critical.

A claim assessment may distinguish between resulting damage and the cost of repairing the source of the problem. Ask specifically how the policy treats burst pipes, leaking roofs, failed waterproofing, gradual deterioration and maintenance issues.

Strata insurance generally does not pay to rectify building defects, wear and tear or poor maintenance. Whether associated damage is covered requires a separate assessment against the wording.

For example, damage after a plumbing failure raises several questions:

What caused the escape of water?
Which damaged items are insured?
Is the failed component itself covered?
Does a special excess or exclusion apply?
Which repairs remain the scheme’s or lot owner’s responsibility?

These are useful questions to resolve before renewal, particularly where the building has a history of water damage.

Strata Insurance, Contents Insurance and Landlord Insurance

These policies address different responsibilities.

Strata insurance responds to insured building property, shared assets and specified scheme liabilities.

Contents insurance addresses an individual owner’s or tenant’s belongings. Owners should check how carpets, blinds, appliances and other items are classified under the relevant strata arrangements and policies.

Landlord insurance may address rental-property exposures such as tenant damage, rent default and landlord liability, depending on the selected cover.

Do not assume a strata policy’s loss-of-rent benefit includes rent default. Check what triggers the benefit and whether separate landlord cover is needed.

For owners, the practical starting point is to obtain the current strata policy schedule and establish what remains their responsibility.

What Affects Strata Insurance Costs?

A meaningful strata insurance quote requires information about the building and its risk profile.

Details to prepare include:

Property address, construction type and building age.
Number of lots, storeys and basement levels.
Building sum insured and valuation date.
Residential and commercial occupancies.
Claims history.
Known defects, cladding and outstanding repairs.
Fire protection and shared facilities.
Selected cover limits and excesses.

When comparing proposals, review the total payable amount, including applicable taxes, charges, broker fees and commissions.

Also compare exclusions, endorsements and special excesses. A lower premium may accompany a higher retained cost or a narrower scope of cover.

Building Defects, Cladding and Outstanding Repairs

Give your broker relevant reports and information about known building issues before seeking terms.

Useful documents may include defect reports, cladding assessments, fire-safety information, engineering reports and evidence of completed rectification work.

Ask how each insurer has treated those issues:

Has a specific exclusion been applied?
Is a higher excess imposed?
Are repairs required within a stated timeframe?
What evidence is needed before terms can be reconsidered?

A quotation should be assessed with its conditions. The headline premium alone does not explain the insurer’s position.

What Should a Strata Committee Check Before Renewal?

Start the review early enough to gather documents and address insurer questions.

A practical renewal review includes:

Confirming the insured entity and property details. Check that the scheme and buildings are correctly identified.
Reviewing the building sum insured. Consider the valuation’s age and changes to the property.
Updating risk information. Include claims, defects, repairs and occupancy changes.
Checking cover and limits. Review liability, office bearers’ liability and relevant extensions.
Reading changes to terms. Identify new exclusions, excesses and insurer requirements.
Understanding the full cost. Request clear disclosure of fees and commissions.
Keeping a decision record. Retain the quotations, advice and approved placement details.

Why Choose Clarke Lyons Insurance?

Clarke Lyons Insurance supports strata schemes across Australia with access to multiple insurers, assistance comparing insurance terms and help navigating claims.

We explain fees and commissions so committees can assess the cost of placement alongside the cover offered. Our role as your broker is to help you understand the available options and make an informed decision for your scheme.

Strata Insurance FAQs

Who arranges strata insurance?

The owners corporation or body corporate generally arranges the scheme’s insurance, often with assistance from a strata manager and insurance broker. The committee should understand the placement and retain access to the policy documents.

Does strata insurance cover everything inside an apartment?

No. Some fixtures may form part of the insured building, but personal belongings and other owner-controlled items need separate consideration. Check the legislation, policy definitions and any lot-owner extensions.

Is flood automatically covered?

Do not assume flood is included. Check whether the quotation includes flood cover, how it is defined and whether an excess, limit or exclusion applies. Storm cover alone does not answer that question.

Are committee members covered for every dispute?

No. Office bearers’ liability is subject to the policy’s definition of an insured claim, exclusions and notification requirements. It should not be treated as general legal-expenses cover for every disagreement involving the scheme.

Does the strata manager’s insurance replace the building’s insurance?

No. Insurance held by a strata management business addresses that business’s exposures. It does not replace insurance arranged for the owners corporation’s building and liabilities.

Who pays a strata insurance excess?

The insurer applies the excess under the policy. How that cost is allocated between the owners corporation and a lot owner is a separate question involving the circumstances and applicable rules. Do not assume the occupant of the affected lot must always pay.

What information is needed for a strata insurance quote?

Start with the current policy schedule, renewal date, building details, sum insured, valuation and claims history. Include relevant defect, cladding and fire-safety reports, along with details of commercial occupancy and planned works.

Request a Strata Insurance Review

Understand what your scheme is insuring, where limitations apply and how the available options compare.

Contact Clarke Lyons Insurance to discuss your strata insurance or request a review before renewal.

Cover is subject to the insurer’s policy wording, schedule, limits, excesses and exclusions.

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