Updated . General information, not insurance or legal advice. Checked against the legislation on 29 September 2026.
What every building has to insure
Every state and territory makes the owners corporation insure the building for its replacement value: enough to rebuild or repair it as new, plus the cost of clearing the site and paying architects. It also has to carry public liability cover in case someone is hurt or property is damaged on the common property. Everyone shares the premium through their levies.
| Public liability, at least | Building valuation | Also required | Set by | |
|---|---|---|---|---|
| NSW | $20 million | Not set by law. The government suggests every 2 to 5 years. | Workers compensation where the law requires it, and cover for volunteers | Strata Schemes Management Act 2015 |
| Vic | $20 million | Every 5 years or sooner | Nothing else | Owners Corporations Act 2006 |
| Qld | $10 million | At least every 5 years | Nothing else | Body Corporate and Community Management (Standard Module) Regulation 2020 |
| WA | $10 million | Not set by law | Other insurance the law requires, such as workers compensation | Strata Titles Act 1985 |
| SA | $10 million | Not set by law | Fidelity cover, in case the building's money is stolen | Strata Titles Act 1988 |
| Tas | $10 million | Not set by law | Nothing else | Strata Titles Act 1998 |
| ACT | $10 million | Not set by law | Nothing else | Unit Titles (Management) Act 2011 |
| NT | $10 million for newer schemes | Not set by law | Nothing else | Unit Title Schemes Act 2009 |
The valuation matters more than it looks. The sum insured is set from it, so a building valued years ago may be insured for less than it would cost to rebuild today.
What’s covered, and what’s yours to insure
The building’s policy covers the structure and the common property, and in most states the fixtures that form part of the building, even inside your apartment. Everything you could pack into a removal truck is yours to insure.
- Roof, outside walls, floors and the slabStrata policy
- Lifts, foyer, pool and car parkStrata policy
- Kitchen cabinets and built-in wardrobesFixtures that are part of the buildingStrata policy
- A visitor hurt on the common stairsPublic liabilityStrata policy
- Furniture, clothes, laptop and TVContents insuranceYour own policy
- A guest hurt inside your apartmentThe liability part of contents insuranceYour own policy
- Rent lost while repairs happenLandlord insuranceYour own policy
- Carpet, curtains and blindsCarpet is left out of the building by law in Vic, Qld and WADepends
- Paint and wallpaperLeft out in NSW and the ACT, included in WADepends
- Damage from a known defect or poor upkeepOften excluded by the policyDepends
- Office bearers' liability
- Fidelity cover
- Machinery breakdown
- Temporary accommodation
- Common property contents
- Flood
- Legal defence
- Government audit costs
Who pays the excess
Water is the big one. The NSW Government reports that at one major insurer, more than half of residential strata claims were for water damage. When the owners corporation claims, someone has to pay the policy’s excess, and each state answers differently.
Who pays the excess when damage affects one lot
- You pay, unless the body corporate decides that's unreasonable. Qld, Tas
- The owners corporation can pass it on to you. Vic
- The owners corporation pays, and recovers it if you were at fault. ACT
- The law doesn't say, so check your by-laws. WA, NT, SA, NSW
The details matter. In Queensland, if the damage came from common property that wasn’t properly maintained, it’s reasonable for the body corporate to pay. In Victoria, the owners corporation can also pass the excess on if you, your tenant or your guests caused the damage through a blameworthy or wilful act, or gross negligence. Where the law is silent, the by-laws and the owners’ own decisions at meetings set the rule.
One protection is worth knowing. Under the Strata Schemes Management Act 2015 in NSW and the Strata Titles Act 1998 in Tasmania, if the insurer pays out for damage an owner caused, it can’t pursue that owner unless they did it on purpose.
Where the pipe sits decides the rest. In the NSW Government’s own example, a leak under your kitchen sink is yours to fix, while water through the wall from the bathroom upstairs is the owners corporation’s job, because it looks after plumbing in boundary walls and floors. Our guide to what strata is covers who repairs what.
Do you still need your own insurance?
Yes. Moneysmart puts it plainly: if you live in a strata property, “you’ll still need contents insurance to cover your belongings, and to cover legal liability.” Most owners need one or two of these policies on top of the building’s.
- Strata insuranceThe owners corporation buys itThe building, common property, fixtures and public liability on common property
- Contents insuranceYou buy it, owner or tenantYour belongings, and your legal liability inside your apartment
- Landlord insuranceYou buy it if you rent it outLost rent and damage by tenants, depending on the policy
Tell the owners corporation before renovating or changing how you use the apartment, because both can affect the building’s premium. Your own policy doesn’t reduce what the building’s policy pays.
Why premiums keep rising
Outside northern Australia, the average strata premium rose 70% since 2021–22, the ACCC found in its final insurance monitoring report in June 2026. Measured per $100,000 insured, the rise was 6%. Most of the increase came from buildings being insured for more, as building materials and labour cost more to replace. Insurers also point to extreme weather and the price of reinsurance.
Rest of Australia, change since 2021–22
Buildings are insured for far more than they were. The price of each dollar of cover has barely moved.
Average strata premium, 2024–25
The north is a different world, with the average northern WA policy more than double the rest of the country. To bring those premiums down, the federal government started a cyclone reinsurance pool on 1 July 2022, backed by a $10 billion guarantee and covering residential strata. In higher cyclone-risk areas, strata premiums per $100,000 insured fell 8% in the first year after insurers joined, and the most expensive premiums fell 42% in Karratha and 28% in Townsville.
How the insurance is sold matters too. The ACCC calls strata insurance “heavily intermediated”: in northern Australia, commissions made up 16% of the average strata policy’s cost in 2024–25, before any extra fees from brokers or strata managers. The states have started to respond, and in NSW every quote now shows where the money goes:
| Item | Amount | Paid to |
|---|---|---|
| Base premium | $28,400 | The insurer |
| Commission, 15% of base premium | $4,260 | The broker |
| Broker fee | $450 | The broker |
| Stamp duty | $2,556 | NSW Government |
| GST | $2,840 | Australian Taxation Office |
- NSW: strata managers must give at least three quotes. Since 3 February 2025 each quote itemises the commission and broker fee and who receives them, and managers can’t take a commission if the owners arranged the insurance themselves.
- Victoria: managers have had to disclose insurance commission as a percentage of the premium since December 2021. In June 2026 the government supported banning managers’ third-party benefits in principle, with more work to come.
- Queensland: commissions must be disclosed in dollars before the body corporate decides on a contract, and listed with the policy details at every AGM.
How owners can keep the premium in check
- Keep the valuation current, so the building is neither underinsured nor overinsured.
- Keep up maintenance. Insurers often won't cover damage from neglected repairs, and may raise the excess.
- Ask for itemised quotes and read the commission and fee lines.
- In cyclone areas, ask about mitigation. A fully retrofitted roof earns insurers a 10% discount on the wind part of the pool's premium.
- In central and north Queensland, look at the Strata Resilience Program, which shares the cost of that work.
For the laws behind all this in your state, see strata law, state by state.
Sources
- Strata Schemes Management Act 2015 (NSW), Part 9 insurance
- NSW Government: finances and insurance
- NSW Government: strata building repairs health check
- Owners Corporations Act 2006 (Vic)
- Body Corporate and Community Management (Standard Module) Regulation 2020 (Qld)
- Queensland Government: premiums and excess
- Strata Titles Act 1985 (WA)
- Strata Titles Act 1998 (Tas)
- Unit Titles (Management) Act 2011 (ACT)
- Moneysmart: contents insurance
- Australian Reinsurance Pool Corporation: cyclone pool
- ACCC: insurance monitoring report, June 2026
- NSW Government: guide to strata law changes
