Strata insurance covers the shared or common property areas in a strata-managed, owners’ corporation or body corporate-managed complex. The Strata Corporation and Body Corporate is required to take our insurance that covers the building, common property and common area contents of a strata schemes. 

Insurance is available for both residential strata and commercial strata properties and should be in the name of the owners corporation. 

It’s is important to note that strata laws and strata insurance differ state by state.  

What does strata insurance cover? 

Here’s what you can expect strata insurance to cover: 

  • Common area contents, the building and shared property in the event of loss or damage.  

  • Theft of common area contents. 

  • Repairs to damaged property managed by the owner's corporation. 

  • Cost of recovery if disaster strikes.  

  • Common property including gardens, lobbies, car parks, pools and stairwells 

  • Common contents such as shared outdoor furniture and gym equipment. 

  • It is also compulsory for strata insurance in all parts of Australia to provide public liability cover in the event that people are injured on common property.  
     

ASM insurance Partners

CHU Residential Strata Insurance 
CHU Residential Commercial Strata Insurance 
Honan Strata Insurance 
Whitbread Strata Insurance 

Stata Title Schemes have been used successfully in many different residential and commercial settings. Some of these include residential complexes, serviced apartments, retirement villages, caravan parks, residential estates as well as industrial complexes, commercial buildings and retail precincts. 

Strata title legislation is specific to each Australian State and Territory. This means that terminology or regulations that apply in one state may be irrelevant in another state. 
 

The terminology of Strata also varies from each State and Territory.  

  • New South Wales - Owners Corporations 

  • Queensland - Body Corporate 

  • Victoria - Owners Corporations 

  • Australian Capital Territory - Owners Corporations 

  • South Australia - Body Corporate 

  • Tasmania - Body Corporate 

  • Western Australia - Strata Company 

  • Northern Territory - Body Corporate 

For further information about Strata, Owners Corporation or Body Corporate contact your local strata manager. 


Buying into a body corporate, owners corporation, Strata Scheme 

Many people buy the unit or property of their dreams, and only after they have settled on the property do, they realise that they have certain obligations and have to pay Body Corporate, Owners Corporation, Strata Corporation fees. It is better to be aware of what is involved when you buy a unit in a Body Corporate. 

  
Understand what a Body Corporate, Owners Corporation, Strata Corporation is. 

If you own a property within a Body Corporate, Owners Corporation, Strata Corporation, then you automatically become a member of that Body Corporate and have responsibilities under the relevant State based legislation. Body Corporate are legal entities (this means they can sue and be sued). They also have legal responsibilities for a range of matters including financial management, insurance, record keeping, dealing with complaints and meeting procedures. A body corporate, strata manage is the manager and administer of the building’s common property and its insurance requirements. To ensure that these can be completed the strata corporation, they collect fees. If you are still not sure about what a Body Corporate is, then you should check with a professional - either your solicitor or conveyancer or contact Australian Strata Management. 


Read the Body Corporate (BC) Certificate, Vendor Statement 

When you are in the process of purchasing a property within a Strata Scheme, you should always ensure that the relevant state the vendor’s statements are supplied. Each state has a different name for these statements and or certificates. Below are the names by state: 

  • Tasmania - the vendor disclosure document for the Body Corporate is the Vendor's Statement, Strata Title Statement and Section 83. 

  • New South Wales - the vendor disclosure document for the Owners Corporation is the Section 184 Certificate, which will be in the Contract of Sale. 

  • Queensland - the vendor disclosure document for the Body Corporate is the Section 206 Body Corporate Disclosure Statement and Section 205 Body Corporate Information Certificate. 

  • South Australia - the vendor disclosure document for the Strata Corporation is the Section 7 of the Vendor's Statement, Section 41 of the Strata Titles Act, and Section 139 of the Community Titles Act.  

  • Western Australia - the vendor disclosure document for the Body Corporate is the Section 43 Certificate and Forms 28 & 29.  

  • Australian Capital Territory - the vendor disclosure document for the Owners Corporation/Body Corporate, is in the building reports, pest compliance, and energy rating. 

  • Northern Territory - the vendor disclosure statement for the Body Corporate, is in the building reports, pest compliance, and energy rating. 

These documents contain important information about insurance, the total fees, the allocation of lot liability and lot entitlement for the unit/apartment/ townhouse or any legal liabilities. 
  
Check the BC Certificate for: 

  • The cost of living in the Body Corporate (i.e. the fees you will be expected to contribute). 

  • The full range of information provided in the Body Corporate certificate, including insurance information. 

  • The details contained in the plan of subdivision. You should check the boundaries of the lot and common property, the location of easements and whether the allocation of lot entitlements and liabilities is fair and reasonable. 

  • The Body Corporate rules (the rules under which the Body Corporate operates). 

  • Current (Lot) Arrears. 

 

Lot Liability and Lot Entitlement  
  
The lot entitlements and lot liabilities of lot owners are set out in the plan of subdivision. 

  • “Lot entitlement” refers to your share of ownership of the common property and determines your voting rights. 

  • “Lot liability” represents the share of Body Corporate expenses that each lot owner is required to pay. 

The developer determines these entitlements and liabilities at the time of subdivision. There are some developments where all lot entitlements and liabilities are the same. But there are equally as many where they can be quite different. It is important to understand what fees you will be paying compared to your neighbours. 
  
What is Common Property? 
  
Common property includes any parts of the land, buildings and airspace that are not lots on the plan of subdivision. Common property may include gardens, passages, walls, pathways, driveways, stairs, lifts, foyers and fences. The common property is collectively owned by the lot owners as tenants in common. It must be clear where the boundaries within a development are located (i.e. how far the common property extends up to, or into the buildings themselves). When a plan contains building boundaries, the plan must define the location of those boundaries by stating whether those boundaries lie along the ‘Interior face’, ‘Exterior face’ or the ‘Median’ of the relevant building structure. Because these boundaries affect maintenance and insurance, you should always check the plan of subdivision carefully and ask questions where anything is unclear. 
  
Your Obligations 

Owning a property in a Body Corporate brings with it certain obligations. The main obligations of Body Corporate are: 

  • Managing and administering the common property. 

  • Repairing and maintaining the common property, fixtures and services. 

  • Taking out and maintaining required insurance. 

  • Raising fees from the lot owners to meet financial obligations. 

  • Preparing financial statements and keeping financial records. 

  • Providing certificates/documentation when a property is up for sale. 

  • Keeping a Body Corporate register. 

  • Establishing a grievance procedure or adopting the grievance procedure in the model rules and implementing it. 

  • Ensuring compliance with the relevant states Strata legislation.  


As each state and territory has their own legislation, the Northern Territory Body Corporate terminology may differ from other states and territories. Body Corporate Managers manage the common property of the body corporate with the help of a body corporate committee.  

The legislation affecting Body Corporates in the Northern Territory of Australia are the Unit Titles Schemes Act (2009) and the Unit Title Schemes (Management Modules) Regulations 2009. 

When buying into or selling a property within a Body Corporate, the vendor disclosure statement for the Body Corporate, is in the building reports, pest compliance, and energy rating. 

In the Northern Territory the dispute resolution body in is the Northern Territory Civil and Administrative Tribunal (NTCAT). 

As each state and territory has their own legislation, the New South Wales strata management legislation terminology may differ from other states and territories. In Queensland Body Corporate Managers manage the common property of the Community Titles Scheme with the help of a Committee.  

When buying into or selling a property within a Body Corporate, the vendor disclosure document for the Body Corporate is the Section 206 Body Corporate Disclosure Statement and Section 205 Body Corporate Information Certificate. 

The legislation affecting Bodies Corporate in Queensland are the Body Corporate and Community Management Act 1997 and Body Corporate and Community Management Regulations 2008. 

In Queensland the relevant dispute resolution body is the Queensland Civil and Administrative Tribunal (QCAT). 

As each state and territory has their own legislation, the Australian Capital Territory body corporate terminology may differ from other states and territories. Strata Managing Agents manage the common property of the Unit Title, or Community Title, with the help of an Executive Committee, or Committee of Management. 

When buying into or selling a property within an Owners Corporation, the vendor disclosure document for the Owners Corporation/Body Corporate, is in the building reports, pest compliance, and energy rating. 

The legislation affecting Owners Corporations in ACT is the Unit Titles (Management) Act 2011 (ACT) (UTMA). 

In the Australian Capital Territory, the dispute resolution body is the ACT Civil & Administrative Tribunal (ACAT) 

As each state and territory has their own legislation, the Western Australian body corporate terminology may differ from other states and territories. In Western Australia Strata Managers manage the common property of the Strata Scheme with the help of a Council.  

When buying into or selling a property within a Body Corporate, the vendor disclosure document for the Body Corporate is the Section 43 Certificate and Forms 28 & 29. 

The legislation affecting bodies corporate in Western Australian are the Strata Titles Act 1985, Interpretation Act 1984, State Administrative Tribunal Act 2004, and Strata Titles General Regulations 2019. 

In Western Australia the dispute resolution body is the State Administrative Tribunal and Magistrate's Court. 

As each state and territory has their own legislation the Tasmanian body corporate terminology may differ from other states and territories. The Strata Agents manages the common property in the Strata Scheme with the help of a Committee of Management.  

When buying into or selling a property within a body corporate, the vendor disclosure document for the Body Corporate is the Vendor's Statement, Strata Title Statement and Section 83. 
 
In Tasmania the legislation affecting Body Corporate in Tasmania is the Strata Titles Act 1998, Fire Service Act 1979, Strata Titles (Insurance) Regulations 1999, and General Fire Regulations 2000. 
 
In Tasmania the relevant dispute resolution bodies are the Recorder of Titles, Land Titles Office, Department of Primary Industries and Water. 

For further information, please head to contact us tab and complete the form. 

As each state and territory has their own legislation, the New South Wales strata management legislation terminology may differ from other states and territories. Strata Managers manage the common property of the Strata Scheme with the help of an Executive Committee. 

When buying into or selling a property within an Owners Corporation, the vendor disclosure document for the Owners Corporation is the Section 184 Certificate, which will be in the Contract of Sale. 

The legislation affecting owners corporations in NSW is the Strata Schemes Management Act 2015. The rules, contained in this legislation and the Strata Schemes Management Regulations 2016, provide the entire requirements and conditions for the running and operation of every type of Strata Scheme in NSW today. Other important legislation that affects owners corporations in NSW include the Property, Stock and Business Agents Act 2002, Community Land Management Act 1989 and the Property, Stock and Business Agents Regulation 2014. 
 
In New South Wales the relevant dispute resolution body covering strata management is the NSW Civil and Administrative Tribunal (NCAT). 

As each state and territory has their own legislation, the South Australian (SA) body corporate terminology may differ from other states and territories. Strata Managers manage the common property in the Strata Scheme with the help of a Management Committee.  

When buying into or selling a property within a Strata Corporate, the vendor disclosure document for the Strata Corporation is the Section 7 of the Vendor's Statement, Section 41 of the Strata Titles Act, and Section 139 of the Community Titles Act. 

The legislation affecting Strata Corporations in South Australia are the Strata Titles Act 1988, Community Titles Act 1996, Strata Titles Regulations 2003, and Strata Titles (Fees) Regulations 2001. 

In South Australia the dispute resolution body in is the Residential Tenancy Tribunal (Office of Consumer and Business Affairs Tenancies). 

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