Commercial Insurance
Cover for residential, commercial and mixed-use strata
If your apartment or unit shares common areas with other owners, you hold a strata title — and strata insurance is compulsory in every Australian state and territory.
Strata insurance essentials
- Compulsory in Australia — Owners of strata units don't have the option to refuse cover — it's required in all states and territories.
- Premiums are shared — The premium is divided among the owners of individual units. According to a report from the Insurance Council of Australia, strata premiums are about one-third the cost of cover for an equivalent free-standing dwelling.
- Where your responsibility ends — The strata policy covers common property; the belongings inside your own unit are yours to insure separately.
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What will a strata policy cover?
Strata insurance covers the building and common property — and includes public liability if someone is injured on the property.
The belongings inside your unit aren't covered by the strata policy. Home & contents insurance covers those.
- The building
- Contents
- Shared common spaces
- Lifts
- Wiring
- Car parks
- Swimming pools
- Gardens
- Ceilings
- Floors
- Ducted air conditioning units
- Equipment, fixtures, carpeting and furnishings in common areas
- Your personal belongings within your unit
- Asbestos and asbestos-related problems
- Erosion
- Property fencing
Optional add-ons
Speak with one of our insurance experts about the options that fit your building.
- Fidelity Guarantee
- Cover for losses from misuse of the owners corporation's funds.
- Electrical & Mechanical Breakdown
- Pays when a covered breakdown results in a loss.
- Office Bearer's Liability
- Cover for committee members (office bearers) against claims arising from decisions they make on behalf of the owners corporation.
- Voluntary Workers' Personal Accident
- Cover for people injured while doing voluntary work for the owners corporation.
Commercial & mixed-use strata
- What is commercial strata insurance? — If your business operates in a divided building under a strata title, commercial strata insurance covers the common areas of the building where your company is located. It's compulsory across Australia, so it's worth confirming you're properly covered.
- What does commercial strata cover? — Three core protections: building and common contents against physical loss or damage; legal liability for personal injury or property damage; and machinery breakdown for lifts, boilers and electrical machinery.
- What about mixed-use strata? — When a building combines residential and commercial use, a mixed strata policy covers the common areas from both perspectives — suitable for residential retail, commercial retail and mixed commercial properties.
From our clients
“Our dealings with KeyInsure have always been very friendly and helpful, also very quick response and professional advice. Pretty sure they save us money on our insurances also. Thank you.”
KeylendWho needs this cover
Strata insurance is arranged by the owners corporation (body corporate) and is generally a legal requirement for strata-titled buildings across Australia.
- Residential apartment and unit complexes
- Townhouse and villa developments with common property
- Commercial and retail strata buildings
- Mixed-use developments combining homes and shops
- Strata managers arranging cover on behalf of owners
- Owners corporations reviewing an expiring policy
What affects your premium
Strata premiums are shared between lot owners and depend on the building as a whole.
Sum insured
The replacement value you insure for. Underinsuring to save premium can leave you short at claim time.
Building age and construction
Older buildings, and those with cladding or other known issues, are rated more carefully.
Location
Postcode drives exposure to storm, flood, bushfire and crime, and insurers price each area differently.
Common property features
Lifts, pools, gyms and car stackers add both value and liability exposure.
Claims history and maintenance
A history of water damage or defects claims affects pricing; a documented maintenance plan helps.
Excess
Choosing a higher excess usually lowers the premium; a lower excess raises it.
Common questions
What does strata insurance not cover?
It covers the building and common property, not the contents inside your own lot. Owners and tenants need their own contents policy for furniture, belongings and, in some cases, internal fixtures.
Who pays the premium?
The owners corporation pays it from levies, so each owner contributes according to their lot entitlement.
Does the policy cover damage to my unit from a neighbour’s leak?
Damage to the building fabric of your lot is typically a strata claim; damage to your own contents is a contents claim. Which policy responds depends on the source of the water and the strata scheme’s by-laws.
How often should the sum insured be reviewed?
Many states require a periodic valuation for insurance purposes. Building costs move quickly, so we recommend reviewing the sum insured at every renewal.
Related cover
Ready when you are
General advice only. Consider the relevant PDS & TMD before acquiring any product.