Does Strata Cover Building Insurance?

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If you’re living in or own a unit in a strata-titled property in Australia, you’ve likely wondered whether strata insurance covers building insurance. The straightforward answer is yes, but it’s not as comprehensive as you might hope. Strata insurance, organised by the owners’ corporation, is designed to protect the building’s structure (think walls, roofs, foundations) and the common areas we all share, like lobbies, stairwells, and car parks. So, if a wild storm rolls through Sydney and tears tiles off the roof, strata insurance typically steps in to fund those repairs. It’s a practical way to keep the property standing without everyone footing the bill individually.

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But here’s where it gets tricky. While strata insurance covers the building’s outer shell and shared spaces, it often stops at your front door. What’s inside your unit (carpets, light fixtures, kitchen cabinets, or even your favourite couch) usually isn’t included. Picture this: a burst pipe floods the common hallway and seeps into your apartment. Strata insurance might fix the hallway, but if your flooring’s ruined or your TV’s fried, you’re on your own unless you’ve got extra cover. This is where many people get caught out, assuming strata insurance has them fully sorted.

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Let’s clear up a misconception too. Some think strata insurance is a catch-all for everything property-related. It’s not. It’s built for the collective good of the building, not your personal space. If a visitor trips over a rug inside your unit and sues, that’s not the owners’ corporation’s problem, it’s yours. Same goes for your belongings. A fire might gut the building, and while strata insurance rebuilds the walls, your smoke-damaged bookshelves and clothes won’t be touched unless you’ve planned ahead.

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So, what can you do? Plenty of people pair strata insurance with contents insurance to protect their stuff: furniture, electronics, even sentimental items. It’s a small added cost for big peace of mind. And if you’re renting, this is especially key, since your landlord’s strata policy won’t cover your gear. Policies vary, though. Some strata plans might include minor internal fixtures like blinds or built-in wardrobes, but you’d need to dig into the fine print or ask the owners’ corporation. The Australian Government’s MoneySmart website has some great tips on figuring out what extra coverage suits you.

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Another thing to consider? Liability. Strata insurance often includes public liability for common areas—if someone slips in the car park, it’s covered. But inside your unit, you’re responsible. A separate policy might be worth it if you have guests or clients coming through.

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In a nutshell, strata insurance does cover building insurance for the shared structure, but it’s not a one-size-fits-all solution. A quick chat with an insurance broker can map out your coverage, spot any gaps, and keep you protected without the stress. It’s about being sensible, not scared.

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Disclaimer: The content provided in this blog is intended for general informational purposes only and should not be considered as professional advice. While we strive to provide accurate and up-to-date information, insurance is a complex field, and the applicability of the information can vary based on individual circumstances. Tank Insurance holds no responsibility for any actions taken based on the information provided in this blog.