Skip to main content
Marsh Logo

Insurance solutions for owners corporations, bodies corporate and other strata plans

Protect shared property and manage common risks with insurance support for strata plans including self-managed schemes and schemes supported by strata or building managers.

Get a quote

What is strata insurance for owners corporations, bodies corporate and other strata plans?

Strata insurance, also called owners corporations (NSW, VIC, ACT), body corporate (QLD, TAS, NT), strata corporation (SA) or strata company (WA) depending on the jurisdiction, generally helps protect the building, common property and common-area contents the scheme is responsible for.

Cover and insurance requirements can vary by policy, scheme and state or territory. Lot owners and tenants may also need separate insurance for property that is not covered by the strata plan policy.

Why use an insurance broker?

Insurance for shared property can involve building values, liability, machinery, claims history and different policy terms. A broker can help your committee identify uninsured risks, review existing insurance arrangements, approach insurers and manage negotiations at placement and renewal. If a claim occurs, Marsh can help coordinate information, liaise with the insurer and advocate for strata plans through the claims process.

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.

Common risks for strata plans

Shared property brings shared risks. Understanding the main exposures can help your committee make informed decisions about insurance and risk management.

Placeholder Image

Property and weather damage

Fire, storm, flood or vandalism can damage shared property. Without adequate insurance, these events can result in unexpected financial strain on all lot owners.

Placeholder Image

Underinsurance

If the sum insured does not reflect reinstatement costs, owners may face a shortfall after a major claim. Rebuilding costs can include demolition, debris removal and professional fees.
Placeholder Image

Injuries on common property

An injury to a visitor, resident or worker on common property may lead to a liability claim against the strata plan.

Placeholder Image

Fraud and financial loss

Scheme funds can be exposed to theft, fraudulent misappropriation or social engineering scams. Available fidelity or cyber cover depends on the policy.

Placeholder Image

Unexpected major repairs

Poor maintenance can lead to costly repairs and special levies. Without a sinking fund or adequate cover, this can trigger unexpected special levies on all owners.

Placeholder Image

Loss of rental income

Insured damage can interrupt rental income from a tenanted lot. Some schemes may also lose income from leased common property, depending on the policy.

Insurance solutions for strata plans by property use type

Insurance needs vary depending on how a property is used. Marsh can support residential, commercial and mixed-use strata schemes with insurance and risk advice.

  • For residential strata schemes, insurance is available for buildings and common property, with cover options for shared property, liability and other scheme risks. It is designed to support the needs of residential strata communities and the risks associated with shared ownership.
  • For commercial and mixed-use strata properties, insurance can help address the different risks created by occupancy, tenant activities, plant and shared property. When assessing cover, it is important to consider property use, occupancy, plant, claims history and risk controls.

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.

Mandatory and recommended insurance for strata plans

Consider office bearers’ liability

 

Committee members can face personal exposure when decisions, errors, omissions or inaction are alleged to have caused financial loss while they are acting for the scheme.

Office bearers’ liability can help with eligible legal defence costs, damages, settlements and costs orders. Cover is generally claims-made, so potential claims should be notified in line with the policy.

Get a quote

What to consider

  • Who may be covered

    Depending on the policy, this may include the chairperson, secretary, treasurer, committee members and others acting in an office-bearer role.

  • What the cover may pay

    Eligible costs may include legal defence costs, damages, settlements and costs orders arising from claims covered by the insurance policy.

  • Claims-made timing matters

    Office bearers’ liability is generally claims-made cover. Potential claims should be reported in line with the policy requirements.

  • Choosing a suitable limit

    Each scheme’s circumstances and needs will differ. Whilst it is our client’s responsibility to determine suitable limits required, please let your broker know of any queries which may be directed to the insurer.

How Marsh can support strata plans

Marsh can support strata plans with insurance placement, insurer engagement, claims advocacy and property risk consulting.

Icon of two individuals engaged in conversation, symbolizing dialogue, communication, and interaction.

Dedicated strata practice

Work with Marsh strata specialists who understand shared-property risks and can support strata plans through the insurance process.

Placeholder Image

Claims advocacy

Marsh can help coordinate claims, liaise with insurers and advocate for the strata plan throughout the claims process.

Placeholder Image

Asset valuations and risk engineering

Marsh Risk Consulting can support asset valuations, property surveys and risk engineering to help schemes understand and prioritise property exposures.

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.

Download claims form

Body corporate insurance generally protects the building, common property and common-area contents. It may also include liability and other covers, depending on the policy and jurisdiction.

The terms generally describe similar insurance arrangements. The terminology varies by state or territory, where the entity may be called a body corporate (QLD, TAS, NT), owners corporation (NSW, VIC, ACT), strata corporation (SA) or strata company (WA).

Cover may include the building, common property, public liability, machinery breakdown, fidelity and office bearers’ liability. The exact cover depends on the policy, limits and exclusions.

Not always. Items such as carpets, blinds, appliances, air conditioning and floating floors may need separate cover depending on the policy and how they are installed. Lot owners may also need contents or landlord insurance.

Generally, yes, where they allege personal injury or property damage caused by the owners corporation’s legal liability. The insurer will assess liability and whether the policy responds.

Notify your broker or insurer promptly, preserve relevant evidence and follow the policy’s claims process. Avoid admitting liability, offering a settlement or starting non-urgent repairs without checking first.

Regularly check plumbing, roofs and drainage, electrical systems and building materials for deterioration or safety issues. Insurance is not a substitute for maintenance, and some gradual damage may not be covered.

Short-stay rental rules and by-laws vary by jurisdiction and scheme. Committees should review the rules applying to their property and consider whether their insurance arrangements remain appropriate.

An insurer will need to investigate the incident and determine whether the strata plan is legally liable. Admitting liability or offering a settlement beforehand may affect the claims process, prejudice the insurer and impact coverage available under the policy.

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 26/3516