Strata Insurance in WA – What You Need to Know
What is Strata Insurance?
Strata insurance (also called building insurance or common property insurance) is a policy taken out by the strata company that covers shared property and infrastructure.
This typically includes:
- The building structure (roof, walls, foundations)
- Common areas like foyers, hallways, lobbies, and gardens
- Shared utilities such as lifts, electricals, and plumbing
- Public liability for injuries on common property
What’s Not Covered
Strata insurance does not usually cover:
- Contents inside individual lots (e.g. furniture, electronics, personal items)
- Owner or tenant negligence
- Wear and tear or maintenance issues
- Fixtures and improvements not declared to the insurer
💡 Each owner should also hold contents insurance (and landlords insurance if the unit is rented).
Who Organises the Insurance?
The Council of Owners or your Strata Manager is responsible for sourcing and maintaining the building’s insurance policy.
All owners share the cost of premiums through strata levies. It’s a legal requirement under the Strata Titles Act 1985.
Making a Claim
If damage occurs to common property (e.g. roof leaks or broken stair railings):
- Notify your strata manager or council immediately.
- Photos and written descriptions help support your claim.
- Your strata manager will handle the claim process on behalf of the strata company.
Understand the Excess
Each insurance policy has its own excess fees. These apply when making a claim—and the cost may fall on an individual lot owner if damage originated in their lot.
Strata Insurance Explained – WA Edition
Key Points Covered:
- What strata insurance actually covers
- Why you still need contents insurance
- How claims work in strata properties
FAQs
Q: What is strata insurance and who pays for it?
A: Strata insurance is a compulsory policy that covers the building’s structure, common property, and shared liability. All lot owners contribute to the premium through strata levies.
Q: What does strata insurance cover in WA?
A: It typically includes building damage, public liability, common property contents, and sometimes office bearer’s liability. It does not cover contents inside individual lots.
Q: Is strata insurance different from home insurance?
A: Yes. Strata insurance covers shared property in a strata scheme, while home insurance protects standalone homes or the contents inside an individual apartment.
Q: How often is strata insurance paid?
A: The strata company usually pays the annual premium, and lot owners contribute through quarterly levies or as per the budgeted expense schedule.
Q: Can I choose my own insurer for strata insurance?
A: No. The policy is held by the strata company. However, lot owners may vote on which insurer to use at an AGM or request alternative quotes through the Council of Owners.
Q: Do I need extra insurance if I live in a strata property?
A: Yes. You should take out contents insurance or landlord insurance (if renting it out), as strata insurance doesn’t protect personal belongings or tenant damage.