Commercial Strata Insurance. Done Right.

The need for strata insurance arises from the collective ownership and shared responsibilities inherent in strata living. Since multiple owners share the common areas and facilities, it is essential to have a comprehensive insurance policy to manage and mitigate potential risks. This ensures that in the event of accidental damage or incident, such as fire or water damage, the repair and legal liability costs are covered, protecting all owners from substantial financial losses.

This is known as a “Mixed-Use” development. In most cases, if more than 20% of the floor area (or a certain percentage of the lots, depending on the insurer) is used for commercial purposes, the complex must be covered under a Commercial Strata policy. This ensures the higher liability risks associated with retail or office foot traffic are correctly managed.

The Owners Corporation (the landlord/owner) is responsible for arranging and paying the policy premium through strata levies. However, most commercial lease agreements allow the landlord to recover insurance costs from the tenant as part of the “outgoings.” If a specific tenant’s business activity (e.g., a commercial kitchen) significantly increases the building’s premium, a broker can help provide a “split invoice” to ensure that the cost is distributed fairly.

Premiums differ based on many factors, including building age and construction materials, replacement cost, claims history, geographical risks such as storms or bushfires, and assets like lifts or pools that increase exposure. The level of excess and optional cover selected by owners also impacts annual premiums.

Most brokers and insurers recommend at least $20 million in public liability cover for strata schemes. This protects the owners corporation if someone is injured or property is damaged on common property. Some high-risk or high‑traffic schemes may require higher limits.

Yes. Regular building reinstatement valuations—often every five years—ensure the sum insured accurately reflects rebuilding costs. Underinsurance can result in significant financial losses during a major claim, making regular valuations essential for compliance and risk management.

In many strata schemes, the external structure including ceilings, roof, and external walls is common property. Internal surfaces (paint, plasterboard, tiles, flooring) typically belong to the lot owner. However, ownership can vary depending on the strata plan and boundaries, so reviewing your plan is recommended.

A strata insurance broker provides expert guidance, tailored advice, and access to specialist insurers. They help ensure appropriate cover is selected and reduce the risk of underinsurance or gaps.

Brokers assess the building’s unique risks, construction type, values, safety features, and claims history. This ensures the policy reflects the true exposure of the building and complies with legislative requirements.

Yes. Brokers can approach multiple insurers, including specialist strata markets unavailable directly to the public. This increases competitiveness and policy suitability.

Brokers stay informed on state legislation, mandatory cover requirements, valuation obligations, and disclosure rules. This helps owners corporations remain compliant and avoid penalties or uncovered losses.

During a claim, brokers liaise with insurers, assessors, and loss adjusters, assist with documentation, and negotiate on behalf of the owners corporation. This advocacy is invaluable during major or complex claims.

Brokers manage renewals, review sums insured, compare quotes, and negotiate terms. This saves committees and managers time while helping maintain sustainable long-term insurance costs.

Yes. Brokers are required to act in the best interests of the owners corporation. They provide independent and transparent recommendations rather than being tied to a single insurer.

Using a strata broker ensures your strata scheme is correctly insured, compliant, competitively priced, and supported during claims. For complex or higher-risk schemes, a broker is essential for proper protection.