37100 — Strata & Body Corporate Insurance
Overview
Node 37100 addresses insurance arrangements specific to strata and community title schemes in Australia — a mandatory and distinctive feature of strata living given the shared ownership of common property and the owners corporation’s statutory responsibility for insuring the building. Strata insurance differs from conventional homeowner insurance in that the owners corporation, rather than the individual lot owner, generally holds primary responsibility for building cover.
The series is organised into four sub-series, each addressed in a subordinate node: statutory strata building insurance requirements, covering the owners corporation’s obligation to insure the building to full replacement value; common property and liability cover, covering damage to shared property and the scheme’s liability exposure; lot owner insurance obligations, covering the insurance responsibilities that remain with the individual lot owner; and the strata insurance claims process, covering how claims are notified, progressed, and resolved under the scheme’s policy.
This node serves as a navigational and definitional entry point for parties requiring an understanding of strata and body corporate insurance, directing the reader to the more detailed subordinate node addressing each component.
Scope & Boundaries
This node addresses the structure of the strata and body corporate insurance sub-series and the general division of insurance responsibility between an owners corporation and individual lot owners. It does not itself set out general property insurance principles applicable outside the strata context, addressed elsewhere in this series.
It does not address strata governance or owners corporation decision-making generally, which is addressed in APN’s separate property management content.
This node provides a structural overview of the strata and body corporate insurance sub-series as at the time of writing. The specific insurance obligation and cover applicable to a given scheme should be confirmed against the scheme’s policy document and the applicable state strata legislation.
Key Concepts
Regulatory & Legal Framework
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Strata Schemes Management Act (state-based, for example the Strata Schemes Management Act 2015 (NSW) and equivalent legislation in other states)Relevant state strata regulatorImposes the statutory building insurance obligation on owners corporations.
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Insurance Contracts Act 1984 (Cth)Australian Securities and Investments CommissionGoverns the terms and conduct obligations applicable to strata insurance contracts.
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Corporations Act 2001 (Cth)Australian Securities and Investments CommissionRegulates insurers and intermediaries providing strata insurance products.
Practical Application
| Scenario | Application | Outcome |
|---|---|---|
| A newly registered strata scheme arranges its first building insurance policy | The owners corporation obtains a policy meeting the statutory full replacement value requirement | The scheme satisfies its statutory insurance obligation from registration |
| A visitor is injured on common property stairs | The owners corporation’s liability cover responds to the third-party claim | The scheme’s common property liability exposure is managed under its insurance policy |
| A lot owner’s internal fitout is damaged by a burst pipe | The lot owner relies on their own contents and improvements policy rather than the scheme’s building cover | The loss is addressed under the appropriate policy according to the insurance responsibility split |
Cross-Series References
Findings are presented on the basis of data and evidence alone.
