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Do I Need Building Insurance for My Strata Unit? Exploring Essential Coverage Points

do i need building insurance for a strata unit

Investment in a strata unit – a prevalent form of condominiums or townhouses within a community structure – carries an array of obligations and critical factors to consider. Amongst these, understanding the insurance prerequisites, specifically those relating to building insurance, presents a considerable challenge for many novice and established strata owners. This guide elucidates four pivotal aspects, designed to illuminate this enigma, empowering you to make educated choices regarding safeguarding your asset.

1. Comprehending Strata Insurance versus Individual Unit Insurance

do i need building insurance for a strata unit

Within the realm of strata living, coexisting entities include building insurance for the communal property and individual unit insurance for the contents contained within your unit. The former, typically organised by the owners’ corporation or homeowners’ association, encompasses the structural supports, communal amenities, and public spaces. Grasping the boundaries of this cover is essential to prevent any potential overlaps or omissions in protection.

2. Overview of Your Strata Building Insurance

do i need building insurance for a strata unit

Your strata dues finances a collective insurance policy shielding against diverse hazards, encompassing fire, tempests, vandalism, and unintentional harm inflicted upon communal property. This policy typically encompasses the building’s exterior, roof, basement, elevator apparatus, and other communal installations. A lucid comprehension of these inclusions aids in determining whether supplemental coverage is warranted for your unit.

3. Reasons for Possibly Requiring Extra Coverage

do i need building insurance for a strata unit

Whilst the strata building insurance provides a comprehensive safeguard, it typically ceases at the perimeter of your unit. Internal fittings, enhancements, and personal possessions are typically excluded. Consequently, you might contemplate procuring separate contents insurance and, occasionally, ‘unit owners’ enhancement’ coverage. This shields your enhancements, renovations, and personal effects from theft, damage, or loss.

4. Evaluating Risks Specific to Your Strata Unit

do i need building insurance for a strata unit

Each strata unit possesses its unique set of risks, shaped by variables such as locale, age of the building, and specific unit attributes. For example, units situated on upper floors may encounter heightened wind vulnerability, whilst ground-level units may be prone to flooding. Conducting a bespoke risk evaluation assists in identifying potential weaknesses and guides you in customising insurance policies that adequately address these specific apprehensions.


Navigating the labyrinth of insurance for your strata unit doesn’t have to be daunting. By discerning the difference between strata building insurance and individual unit insurance, comprehending the standard coverage provided, acknowledging the necessity for complementary coverage, and evaluating your unique risks, you can confidently respond to the question, “Do I require building insurance for my strata unit?” Indeed, whilst the strata’s master policy furnishes a fundamental safety net, augmenting it with tailored insurance plans guarantees comprehensive protection for your investment and tranquillity of mind.


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