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Residential strata insurance solutions for shared property

Protect apartment buildings, unit complexes and shared residential property with insurance arranged around your strata scheme, common property and local requirements.

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What is insurance for residential strata schemes?

Insurance for residential strata schemes is arranged by a body corporate, strata plan, owners corporation or similar entity to help protect the building, common property and common area contents.

It is designed for apartment buildings, unit complexes and other residential strata schemes. The cover required and the definition of the building depend on where the property is located, the legislation that applies and the selected policy.

As each policy wording differs, please carefully read the insurance policy documentation provided to you by Marsh, which will contain the precise wording. Always reach out to your broker if you have any questions.

What insurance for residential strata schemes may cover

selected option

Building and common property

Cover may respond to insured loss or damage to the building, shared areas, fixtures and common area contents. What forms part of the building depends on local legislation and the policy wording.

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Common area contents

Common area contents may include removable items in shared spaces, such as gym equipment, lounges, carpet, artwork and internal letterboxes, subject to the policy definition and all policy wording.

Liability and selected sections

A policy may also include liability to others, voluntary workers, fidelity or cyber cover, office bearers’ liability, machinery breakdown, audit costs or legal expenses where selected, covered by the policy wording and shown in the schedule.

Selected additional covers

Depending on the policy and schedule, selected covers may include flood, catastrophe, machinery breakdown, fidelity, office bearers’ liability, cyber or legal expenses.

Temporary accommodation and loss of rent

Some policies may pay temporary accommodation costs for owner-occupied lots or loss of rent for leased lots when insured damage makes them unfit to occupy. Coverage differs between policies, pursuant to policy wording and all terms, conditions and exclusions.

Lot owners’ fixtures and improvements

Some policies may cover permanently attached fixtures or improvements installed by a lot owner after insured damage, subject to the policy, schedule and applicable strata legislation. Coverage differs between policies, pursuant to policy wording and all terms, conditions and exclusions.

Personal contents inside a lot

Strata insurance does not usually cover personal belongings, furniture, removable appliances, carpets or other contents owned by a lot owner or tenant. Separate contents or landlords’ insurance may be needed if required by lot owners or tenants.

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Wear, defects and maintenance

Common exclusions may include wear and tear, corrosion, gradual deterioration, defects, faulty workmanship and maintenance-related damage. Resulting damage may be treated differently under some policies.

Items that depend on the policy

Floating floors and air-conditioning units can be treated differently by legislation and insurers. Check the policy wording and schedule before deciding whether a policy is right for you.

Tenant damage and rent default

Damage caused by tenants, unpaid rent and legal costs linked to rent default are generally landlord risks rather than strata cover. Separate landlords’ insurance may be needed.

Liability inside individual lots

Liability arising inside a lot may sit with the lot owner or tenant rather than the strata scheme. Responsibility depends on facts and circumstances of a claim, to be assessed by the relevant insurer.

Common events that may lead to a strata claim

Insurance for residential strata schemes may respond to sudden and unforeseen insured events, subject to the policy terms, conditions, exclusions, and applicable limits. Whether a claim is covered will depend on the circumstances of the event, the cause of the damage, and the relevant policy wording.

As each policy wording differs, please carefully read the insurance policy documentation provided to you by Marsh, which will contain the precise wording. Always reach out to your broker if you have any questions.

  • Water damage may arise from burst hoses, leaking appliances, blocked drains, or pipe failures. Coverage will depend on the cause of the damage, the condition and maintenance of the property, and the policy wording.
  • Fire may result from electrical faults, ageing wiring, or faulty communal appliances. Regular inspection and maintenance may help reduce the risk of loss, but do not guarantee coverage.
  • Storm and rainwater damage may affect roofs, walls, common areas, and basements. Flood may be a separate insured event and may only be covered if specifically included in the policy.
  • Damage caused by vandalism or a malicious act may be covered if the event falls within the policy definition and is not otherwise excluded.
  • Flood damage may be covered where the relevant extension has been selected. Coverage, limits, and excesses may vary depending on the property, location, insurer, and policy schedule.
  • Theft or damage linked to unauthorised access may lead to a claim if it is covered under the policy. Secure storage, access control, and prompt reporting of missing master keys may help reduce exposure.

Reduce the risk of underinsurance

Rebuilding costs can change over time. Reviewing the building sum insured and obtaining an updated valuation can help identify a potential shortfall before a claim.

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Use replacement cost

 
The building sum insured should reflect the cost to rebuild, rather than the property’s market value.
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Include related rebuilding costs

Depending on the policy, rebuilding costs may include demolition, debris removal and professional fees for architects, surveyors and engineers.

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Review values regularly

 
Changes in labour, materials, plant and equipment costs may leave an older valuation below the amount needed after a major loss.
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Consider catastrophe exposure

Optional catastrophe cover may provide an additional amount when a declared catastrophe causes rebuilding costs to exceed the building sum insured. Terms vary by policy.

Who generally insures what?

Residential strata insurance generally covers the building and common property. Lot owners and tenants may need separate cover for contents and other items they own inside an individual lot.

The table below is a general guide only. Responsibility can change depending on the relevant legislation, strata plan, ownership of the item and policy wording.

 

Item

Strata scheme 

Lot owner 

Tenant 

Important notes 

Walls and building structure 

✓ 

    

May include exterior and interior walls, ceilings, windows, lifts, stairs, wiring and pipes, subject to local legislation and the policy definition. 

Common property and shared areas 

✓ 

    

May include driveways, car parks, pools, communal facilities, gardens, courtyards, rooftops, lobbies and entrances. 

Permanent fixtures inside a lot 

✓ 

    

May include showers, doors, built-in ovens and cooktops, built-in wardrobes and kitchen units, subject to legislation and policy wording. 

Fixed timber or tiled floors 

✓ 

    

Flooring fixed to the building may form part of the strata-insured property. 

Carpets and floor rugs 

  

✓ 

✓ 

These are generally insured by the person who owns them. 

Curtains, blinds and furniture 

  

✓ 

✓ 

These are generally contents belonging to the lot owner or tenant. 

Whitegoods and removable appliances 

  

✓ 

✓ 

Dishwashers, washing machines, dryers and similar appliances are generally insured by their owner. 

Floating floors 

  

✓ 

  

Floating floors are generally treated as contents, although some strata insurers may offer optional cover. 

Air-conditioning units 

Varies 

Varies 

  

A permanent fixture, such as ducted air conditioning, may form part of the building. Treatment depends on the location and policy wording. 

Personal belongings 

  

✓ 

✓ 

Jewellery, electronics, artwork and other personal property generally require separate contents insurance. 

Check the applicable PDS, policy wording and schedule before arranging cover or making a claim.

Why work with Marsh?

Marsh’s strata specialists can help review your risks, approach insurers and support you through placement, renewal and claims.

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Dedicated strata support

Work with a client manager and service team that understand bodies corporate, strata plans, owners corporations and shared property risks.
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Claims advocacy

Marsh can help lodge and progress your claim, coordinate information, communicate with the insurer and advocate on your behalf. The insurer makes all claims and assessment process decisions.

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Property risk support

Marsh can support valuations, property risk assessments and catastrophe modelling, and help clients consider flood, cladding, electrical and maintenance exposures.

Talk to a residential strata specialist

Tell us about your property, current insurance arrangements and the support you need. A Marsh strata specialist can discuss your risks and available insurance options.

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Explore strata insurance solutions

Explore insurance and risk support for the people and organisations involved in managing, governing or developing strata property.

Frequently asked questions

  1. Complete and submit a claims form to strata@marsh.com.
  2. Once Marsh has received all required information, the claim will be registered and sent to the relevant insurer within 1 business day. 
  3. After all relevant information has been received and any necessary enquiries have been completed, the insurer will aim to respond within 10 business days. 
  4. Claim updates are provided by the insurer to claimants as agreed, or Marsh will issue written acknowledgement to the notifying party (intermediary or direct customer) every 10 days. 
  5. Marsh will make reasonable efforts to share updates as soon as they become available. 
  6. In most circumstances, the insurer aims to determine the claim within 4 months of lodgement, although this may be affected by exceptional events such as catastrophes or delays in receiving responses.

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It usually covers the insured building, common property and common area contents for insured loss or damage. Depending on the selected policy sections, it may also include liability, voluntary workers, fidelity, cyber, office bearers, machinery breakdown or legal expenses.

Factors may include the property’s location, sum insured, age, construction, size, occupancy, defects or maintenance issues, selected cover, claims history and insurer underwriting requirements.

Usually not. Furniture, personal belongings, carpets, blinds and removable appliances owned by a lot owner or tenant generally require separate contents or landlords’ insurance.

The body corporate, strata plan, or owners corporation generally arranges insurance for the building, common property and shared contents. The exact responsibility depends on local legislation and the strata plan’s arrangements.

It may cover resultant water damage from an insured event, such as a burst pipe or apparatus. Cover for the failed pipe, appliance, defect or maintenance issue may be different, so check the policy wording.

Some policies may respond when an accepted claim makes a lot unfit for occupation. Temporary accommodation generally applies to an owner-occupied lot, while loss of rent generally applies to a leased lot. Eligibility, limits and conditions vary.

You may be asked for the property location, building details, number and use of lots, current valuation or sum insured, claims history, existing insurance, known defects or maintenance issues and the cover you want considered.

If the sum insured is below the cost of rebuilding, lot owners may face a financial shortfall after a major claim. The figure may need to allow for demolition, debris removal and professional fees, depending on the policy.

Not always. Flood may be offered as an extension and assessed according to the property’s location and exposure. Check the policy schedule, PDS, limits and applicable excess.

Catastrophe cover may provide an additional amount if a declared catastrophe causes rebuilding costs to exceed the building sum insured. It does not replace the need for an appropriate building valuation.

They can. Policies commonly exclude wear, corrosion and gradual deterioration. Known leaks, defects or unresolved maintenance issues may also affect a claim, so problems should be recorded and addressed promptly.

Whilst you must always refer to policy wording for policy definitions:

  • Building: The structures, fixtures and other property included under the legislation and policy definition.
  • Excess: The amount the insured must contribute towards an accepted claim.
  • Flood: A defined event whose cover may depend on the selected policy and schedule.
  • Floating floors: Flooring that is generally not fastened to the subfloor and may be treated as contents.
  • PDS: The Product Disclosure Statement explaining the product’s features, terms, conditions, limits and exclusions.

Whilst you must always refer to policy wording for policy definitions:

  • Fidelity guarantee: If available, may respond to fraudulent misappropriation of strata scheme funds.
  • Voluntary workers: If available, may provide benefits following accidental injury while carrying out unpaid work for the scheme.
  • Office bearers’ liability: If available, may respond to certain claims against committee members arising from their duties.
  • Machinery breakdown: If available, may respond to insured breakdown of selected plant and equipment.

Need to make a claim?

  1. Download a claim form here.
  2. Complete all sections of the claim form.
  3. Send your completed claim form to strata@marsh.com.
  4. Marsh will lodge the claim with the insurer and advise on the next steps.

This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238 983) (“Marsh”) and Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“MAI”) arrange the general insurance (i.e. not the Discretionary Trust Arrangement) and are not the insurer.

Discretionary Trust Arrangements are issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417 964) (“JGS”). Any advice or dealing in relation to a Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). The cover provided by a Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements (PDSs) available from the relevant product issuer. Target Market Determinations (TMDs) are available here.

Marsh, MAI, JGS and JLT are all businesses of the Marsh group.

LCPA 26/ 3512