Short answer
Strata insurance is the insurance the owners corporation holds over the building and common property — shared by all owners and paid for through levies. The scheme is generally required to insure the building (for damage and rebuilding) plus public liability for the common property.
What it covers
- The building — damage to the structure, and the cost of rebuilding if needed.
- Common property — the shared areas and services.
- Public liability — claims arising from the common property.
What it doesn’t cover
It does not cover the contents inside your unit, or your personal liability — that’s your own contents insurance. Don’t assume the strata policy protects what’s inside your lot.
Who arranges and pays for it
The owners corporation arranges the cover (often with a valuation to set the sum insured) and pays for it from the administrative fund — it’s usually one of the biggest items in a scheme’s budget (see who arranges strata insurance).
Keeping cover current
Missing a renewal or under-insuring the building is a serious risk for a self-managed scheme. A system such as Straita tracks the policy, renewal dates and valuation so the scheme stays properly insured and the committee just approves the cover.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — the owners corporation’s insurance obligations.
- NSW Government — Strata schemes (Fair Trading) — strata insurance.