Strata Property Insurance is designed for buildings under a strata, group, body corporate or community title. It provides cover for the building, its common contents and the commercial risks associated with operating a company. Many property owners take out a home and contents insurance policy and assume that this will cover everything connected with the building. However this can be a dangerous assumption.
In most cases common contents between strata lots will not be covered by a home and contents policy, nor the legal liability of common areas leaving owners unknowingly vulnerable to serious financial risk. Strata insurance exists to protect against this. Here’s how to make sure that your policy is right for all involved.

What is a collaborative strata property arrangement?

A collaborative strata property arrangement refers to the holding of strata title in collaboration between a number of parties. The arrangement is devised with input from all parties in the interest of achieving the best possible outcome for all.
So how do you find the best strata insurance policy for everyone?

Start with the right type of insurance

As obvious as this is, many consumers fail at the first step by choosing the wrong type of insurance policy from the outset. A home and contents policy does not include the common interests of a strata property, such as shared driveways, facilities and services nor does it insure the strata companies’ commercial exposure to legal liability, fidelity, office bearers and audit claims. Strata insurance is specifically designed to provide cover for a strata titled property and is the first step in choosing the most beneficial cover for all unit owners.

Use a broker

The quickest way to source a comprehensive and accurate strata policy is to take advantage of the services and skills of a professional insurance broker, in particular one experienced in providing strata insurance. Given these products are specialist policy, the majority of strata insurers only deal with insurance brokers and do not deal direct to the public. Importantly, not all policies are equal so by speaking to an industry professional they will be able to provide advice and recommendations specifically for the property that you are insuring.

Insure for the full replacement value

There is a temptation to insure for less than the full replacement value. This does not fully mitigate against risk and leaves unit owners open to financial ruin. Do not be tempted to underinsure your property, and seek a valuation every few years to ensure that the limits set out in your policy sufficiently cover the replacement costs you could be liable for.

Inform yourself

Take pre-emptive steps to know all details of your strata property that your insurer will need to organise for your policy. This includes the age of the building, whether it is heritage listed, pervious claims incurred and any existing damage or defects.


If you are organising strata insurance on behalf of others, keep them in the loop and involve all parties in the decision making process. Strata titled property with more than 4 units should have a ‘Council of Owners’ appointed to make decisions on behalf of all unit owners. This ensures that all unit owners are fully aware of what is and isn’t covered by the policy, and any responsibilities that they have as a strata property owner.

Speak to a professional insurance broker

You know it makes sense to let the best help you with property insurance. Call Challenge Insurance Services today on 1300 656 243 to make sure that your strata property insurance is as good as it can be. Also, keep in mind that all information in this blog is of a general nature and advice should be sought for your specific property from a broker.