Strata Insurance

The policy an owners corporation inherits at handover is only as good as the building behind it — and the broker who can prove it. Strata insurance is compulsory for every strata-titled building in Australia, covering the building structure, common property and the liability that comes with shared ownership. What it costs, and how far it extends, depends on what the insurer knows about the building. On a new development that is usually very little — unless someone has been documenting it since construction.

Coverage Highlights

Civil liability for advice, design, or certification decisions
Claims-made cover, responds years after the work
Defence costs for regulatory or disciplinary inquiries
Reviewed against a widening duty of care

Building and common property cover, compulsory from registration

Compulsory cover

The building and common property, including shared equipment, furniture, and fittings
Public liability for injury occurring on common property
Loss of rent or alternative accommodation following an insured event, where applicable

Optional cover

Office bearers’ liability, for claims arising from wrongful acts by committee members
Fidelity guarantee, for loss arising from misappropriation of owners corporation funds
Personal accident cover for volunteers carrying out work on behalf of the owners corporation
Mechanical and electrical breakdown cover

Handover is where strata cover gets set up right

A newly registered owners corporation places its first strata policy at the moment it knows least about the building. Latent Defects Insurance changes that. LDI is only issued after an independent Technical Inspection Service has reviewed the design and inspected the works at every stage gate — so the insurer is not pricing an unknown, it is pricing a building that has been independently verified through construction. The LDI then runs alongside the strata policy for ten years, meeting structural defects without the owners corporation having to prove anyone was at fault.

 Underwriters price both facts. We have placed strata cover on LDI-backed buildings at 15 - 35% below standard rates, with extensions the open market does not offer as standard.

Continuity from developer to owners corporation

Another broker can quote a strata policy. They cannot evidence the building. Where SHC has arranged the development’s Latent Defects and contract works cover, we hold the inspection reports, the design reviews and the construction record — and we put that file in front of underwriters at handover. That evidence is what converts a well-built building into a lower premium and wider cover. Without it, the owners corporation is quoted like every other new building on the market. Developers using the full SHC ecosystem carry that advantage from feasibility through to the owners corporation — and hand over a building that is cheaper to insure because of how it was built, inspected and documented.

Choose SHC for Strata Insurance

Continuity from developerto owners corporation

Because SHC Insurance Brokers often already holds the LDI and contract works history on a development, we can carry that knowledge into the strata cover at handover, rather than the owners corporation starting again with a broker who's never seen the building.
Construction insurance specialists

More than 37 years in construction insurance means we understand what actually goes wrong in strata buildings, and structure cover accordingly rather than applying a one-size policy.

Frequently asked questions

Is strata insurance compulsory?

Yes. Every strata-titled building in Australia, sometimes referred to as a body corporate depending on the state, is required to hold strata insurance covering the building and common property.

Who arranges strata insurance for a new development?

The developer typically arranges the first strata policy at registration, before responsibility transfers to the owners corporation once it's established.

What is the difference between strata insurance and LDI?

Strata insurance covers the building and common property against a broad range of risks (fire, storm, liability) on an ongoing annual basis. LDI is a 10-year, first-resort policy specifically for structural and waterproofing defects from the date of the Occupancy Certificate. Most strata buildings with LDI in place need both.

Does strata insurance cover individual lots?

Generally, strata insurance covers the building structure and common property. Contents and fixtures within an individual lot are typically the owner's responsibility to insure separately, depending on the strata plan and state legislation.

What happens to strata insurance if the owners corporation changes strata manager?

The policy itself doesn't depend on who manages it day to day, but a change in strata manager is a good opportunity to review whether the cover in place still reflects the building's actual risk profile.

Does strata insurance cover office bearers personally?

Only if office bearers' liability is included as an optional extension. This covers committee members against claims arising from decisions made in that role.