Short answer
The Strata Schemes Management Act 2015 does not set a fixed interval for obtaining a building insurance valuation — the earlier mandatory requirement (valuing at least every five years) no longer applies in current NSW strata law. What the Act does require is that the building stays insured for at least its replacement value, so schemes need to value it often enough to keep the sum insured adequate. Industry practice commonly recommends a professional valuation every few years, but confirm the current requirement with a licensed strata manager or NSW Fair Trading.
What the law actually requires
The current Act requires the owners corporation to insure the building for at least the amount worked out under the regulations — in effect, its replacement value. It does not, however, prescribe how frequently a valuation must be obtained; the old fixed “at least every five years” rule from earlier legislation is no longer in force. The obligation is about the sum insured being adequate, not about hitting a set schedule.
Why regular valuations still matter
Because rebuilding costs change over time, a valuation that is several years old can leave a scheme underinsured — unable to fully rebuild after a major loss, with owners exposed to the shortfall. That risk is why professional bodies and strata brokers commonly recommend obtaining a fresh replacement-cost valuation periodically (often cited as every few years). Treat that as prudent practice rather than a statutory deadline, and confirm the current requirement with a licensed strata manager or NSW Fair Trading.
Who arranges it and what it sets
The owners corporation arranges the valuation, usually through a qualified valuer or its strata broker, and the figure it produces becomes the building’s sum insured on the damage policy. That replacement-cost figure covers demolition, debris removal and professional fees, not just the bare rebuild — and it is deliberately different from the property’s market value.
Keeping the valuation current without a manager
The real risk for a self-managed scheme isn’t the rule — it’s letting the valuation quietly age until the building is underinsured. A system such as Straita records when the last valuation was done and prompts the committee to review it on a sensible cycle, so the sum insured is refreshed before it drifts out of date and the committee simply approves obtaining a new one.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — the building must be insured for at least the amount determined under the regulations (ss 160–161); note the Act sets no fixed valuation interval.
- NSW Government — Strata schemes (Fair Trading) — strata insurance and valuation guidance.