Products Strata Insurance | Ipswich Insurance Brokers
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Strata insurance helps protect buildings, common property and the financial position of the owners corporation/body corporate. Whether your plan covers residential apartments, townhouses, mixed-use complexes, or commercial strata, there are particular property, liability and governance exposures to consider. Weather events, ageing services, construction quality, occupancy mix and regulatory obligations all influence how cover should be structured. 🏠
To discuss your strata risks and policy options, speak with a broker: Contact Ipswich Insurance Brokers.
Overview
Strata schemes bring together multiple lot owners with shared responsibilities for buildings and common property. The body corporate (owners corporation) is typically required to arrange insurance for the full replacement value of buildings and common property, along with liability cover for personal injury and property damage arising from common area incidents. Well-considered strata insurance can also extend to loss of rent and temporary accommodation following insured damage, office bearers liability, fidelity (dishonesty), voluntary workers, machinery breakdown for shared plant such as lifts, and catastrophe escalation.
Across South East Queensland and other parts of Australia, severe storm and hail events, localised flooding, and construction-related defects are common drivers of claims. In growth corridors and near logistics hubs, complexes may be adjacent to high-traffic roads and rail, which can increase impact and vibration risk. For established suburbs, older services such as roofing, membranes, plumbing stacks and electrical boards can introduce water ingress, fire and business interruption issues if not maintained. These factors all contribute to underwriting considerations, sums insured and special conditions.
Strata managers and committees will often balance levy predictability with the need for adequate limits, updated valuations and practical policy extensions. The detail matters: differences in flood definitions, exclusions for gradual deterioration, or narrow sub-limits for temporary accommodation can materially affect how a policy responds to an insured event. 📋
Key risks and considerations
Every strata plan is different. The following risk themes commonly drive coverage discussions and underwriting outcomes:
- Weather exposures: severe storm and hail, wind-driven rain, storm surge, localised flooding and overland flow.
- Water ingress and escape: roof and balcony membranes, failed sealants, bursting pipes, hot water systems and gutters/downpipes.
- Construction quality and materials: combustible façades, cladding, balcony balustrades, non-compliant glazing, and concrete spalling from water/steel interaction.
- Aging plant and services: lifts, fire protection systems, switchboards, solar arrays, EV charging infrastructure and embedded networks. 🛠️
- Common area liability: slips and trips, falling objects, play areas, pool safety, gyms, car parks and loading zones.
- Mixed-use complexity: food and beverage tenancies, cool rooms, commercial kitchens, grease arrestors, extraction systems and after-hours trade.
- Occupancy profile: short-stay letting, high tenant turnover, vacancy, and storage of hazardous goods in garages or storage cages.
- Security and access: gate and door controls, CCTV and lighting, mail theft, parcel storage and contractor management.
- Catastrophe escalation: declared catastrophes can drive rapid cost inflation for materials and labour; check sub-limits that address this dynamic.
- Underinsurance and indexing: ensuring replacement values reflect current construction costs, demolition and professional fees.
- Governance: decisions of office bearers and the committee; record-keeping; conflict of interest and disputes.
- Financial controls: levies, funds on deposit and processes around payments and approvals.
- Documentation: building plans, fire and essential services reports, defect rectification history, and maintenance registers.
How cover is typically structured
Strata policies are typically arranged as a package tailored to the scheme. Sections commonly include:
Building and common property
Replacement value of buildings and permanent fixtures forming part of common property, including structural elements, lifts, shared plant, foyers, common facilities and underground services. Sums insured usually include demolition, debris removal, architects’ and engineers’ fees, and cost escalation allowances. Consider optional extra cover for flood if available and aligned with your flood risk. Landscaping, retaining walls, and gates/fences may be sub-limited—review carefully.
Glass and signs
Covers accidental breakage of external and internal glass forming part of common property. Check glazing compliance, film/wrapping requirements and treatment of decorative panels and illuminated signs.
Common contents
Furniture, gym equipment and other chattels owned by the body corporate (not individual lot owners). If your complex includes a manager’s office, building management system hardware or shared tools, ensure they are included or separately listed.
Legal liability
Public liability for personal injury and property damage occurring in connection with the ownership of common property. This often includes coverage for the body corporate, office bearers acting within authority, and, in some cases, volunteers. Limits should reflect foot traffic, visitor profile, and any commercial operations within the scheme.
Office bearers liability
Protection for the committee and office holders for alleged wrongful acts in the administration of the strata scheme. Review definitions for insured persons, advancement of defence costs, prior and pending litigation exclusions, and insured v insured considerations.
Fidelity (crime)
Cover for direct financial loss from dishonesty by an insured person. Understand who is captured by the definition (e.g., committee members, employees, contractors) and reconcile with your financial control environment. ✅
Machinery breakdown
Covers sudden and accidental mechanical or electrical breakdown of plant such as lifts, motors, pumps, automatic doors and gate mechanisms. Consider deterioration of stock for refrigerated common areas (if present), and verify service contracts and maintenance logs to satisfy warranty conditions.
Catastrophe extension
An optional uplift recognising cost inflation during a declared catastrophe, helping to bridge the gap between pre-event valuations and surge pricing for labour and materials.
Loss of rent and temporary accommodation
Following insured damage that makes lots uninhabitable, cover may include temporary accommodation for owner-occupiers and loss of rent for landlords. Understand trigger wording, maximum periods and the link to tenancy agreements. Mixed-use schemes should review treatment for commercial tenancies and fit-out separation.
Lot owners’ fixtures and improvements
Policies may extend to certain fixtures within lots, though boundaries between lot property and common property are critical. Clarify where responsibility sits for floating floors, cabinetry, air-conditioning units, balcony tiles and internal glass.
Voluntary workers
Injury benefits for volunteers engaged in approved duties on behalf of the body corporate. Check age limits, excluded activities and coordination with other policies.
Additional optional sections
Depending on the insurer and scheme profile, you may consider audit and tax investigation costs, limited cyber/privacy extensions relating to owners’ data, and cover for legal defence costs tied to by-law enforcement.
Common wording checkpoints
Small differences in policy language can have a material impact. Points to review include:
- Perils definitions: flood, storm surge, rainwater runoff, actions of the sea and erosion.
- Water damage: treatment of membranes, resultant damage from defects, and sub-limits for trace and access.
- Foundations, retaining walls and driveways: inclusion/exclusion and sub-limits.
- Code upgrades: allowances for compliance with current building regulations following damage.
- Loss of rent/temporary accommodation: triggers, time limits, indexing and treatment of short-stay letting.
- Composite insured vs joint insured: how the policy treats individual lot owners for claims and indemnity.
- Excess application: per lot, per event or per building; special excesses for water damage or glass.
- Catastrophe uplift: percentage and maximum limit; declaration requirements.
- Machinery breakdown: age and maintenance conditions; surge protection; consequential loss.
- Keys and locks: rekeying and security system reprogramming following theft or threat.
- Landscaping and trees: storm damage treatment and debris removal limits.
- Contractor liability: requirements for certificates of currency and hold harmless clauses.
- Claims preparation costs: access to independent loss adjusters or quantity surveyors under the policy.
- Vacancy and security: unoccupied lot or building conditions, and alarm/CCTV requirements.
- Illegal drug contamination and malicious damage: if available, how these are defined and limited.