Strata Insurance: What Does the Policy Cover?

If you’re connected with a real-estate development group and are likely to set up a strata corporation, then your first thought would be to figuring out your building’s insurance needs, as the kind of insurance you oblige will have a massive impact on strata fees and the income of each property owner at some point of time. Similarly, in case you’re a part of a standing strata council and you are looking to switch providers, simply realize that you have alternatives out there!

The field of strata insurance can be a complicated one with all its turns, twists, ifs and buts. However, knowing what strata insurance actually is will clear your doubt as who needs it and who doesn’t. Here are the answers to some of the most common questions.


  • There are 2 types of insurance you should consider when buying your own strata unit. The strata building policy (the master strata policy) covers the strata house and is designed to protect the mutual interests of the shareholders in the corporation.
  • Strata insurance is available for commercial buildings, mixed-use buildings, residential buildings, and bare-land stratas. The apartment owner’s insurance policy is specially designed to cover the own interests of the unit owner, like their contents, improvements done to the unit, as well as personal liability.

Strata Insurance Policy Covers Things Like

  • Attached/built-in machinery like elevators, boiler rooms, and security systems
  • Basic electrical systems and plumbing in each unit
  • Roofs, windows, doors, crawlspaces, framing, and exterior paint
  • Common properties like driveways, garages, gardens, hallways, staircases, and pools
  • Common property fixtures like décor, lighting, and lobby furniture
  • Liability for property damage and bodily injury that occurs on common property
  • Shared-use building maintenance supplies
  • Some fixtures like wall coverings and original flooring