Understanding Strata Insurance on the Gold Coast

Strata insurance is one of the most important obligations a body corporate has, and one of the areas where mistakes can be costly. Here is what Gold Coast lot owners and committee members need to know.

What is strata insurance?

Strata insurance is building insurance specifically designed for Community Title Schemes. It covers the building structure and common property against damage from events like fire, storm, and water ingress.

Taking out and maintaining adequate building insurance is a legal requirement for all bodies corporate in Queensland under the Body Corporate and Community Management Act (BCCMA). It is not optional.

What does strata insurance typically cover?

A standard strata insurance policy generally covers the building structure and common property, fixtures and fittings that were originally part of the building, common area contents, legal liability for injuries or property damage occurring on common property, and in some cases, loss of rent or temporary accommodation if a lot becomes uninhabitable.

The exact coverage varies between policies and insurers, so it is important that your strata manager obtains the right policy for your scheme’s specific circumstances.

What does strata insurance typically not cover?

Strata insurance does not usually cover the personal contents of individual lots, improvements or additions made by lot owners beyond the original fit-out, vehicles in the car park, or general wear and tear. Lot owners should hold their own contents insurance policy to cover their personal belongings and any improvements they have made to their unit.

How do I make a claim?

The process for making a strata insurance claim generally involves notifying your strata manager as soon as an insurable event occurs. Your strata manager will then liaise with the insurer, arrange for assessments where required, and manage the claim process on behalf of the body corporate.

For damage to a lot caused by a building defect or common property issue, the body corporate is generally responsible for making the claim. For damage to lot owner contents, the individual owner would claim on their own policy.

Why use a strata manager for insurance?

Getting the right cover is not straightforward. Underinsurance is a significant and common risk for bodies corporate, particularly in a market like the Gold Coast where building replacement costs have risen sharply in recent years. A strata manager experienced in Queensland legislation can arrange appropriate valuations, review cover annually, and ensure your scheme is not left exposed.

Holmac Strata manages insurance for Gold Coast schemes across Surfers Paradise, Broadbeach, Southport, Robina, and Palm Beach. Contact us if you want to review your scheme’s current coverage.