A personal approach
to body corporate management
That’s why we take the time to listen, tailoring our management approach to suit every person, their communication style and business preferences.
Receive an obligation
free proposal
Please contact us here if you are seeking a proposal for a building we don’t currently manage. If you are an existing BCsystems customer please email us at info@bcsystems.com.au
When you purchase a property in a strata scheme, your insurance responsibilities are very different from owning a freestanding house. Many lot owners assume that the body corporate’s insurance covers everything, but that’s rarely the case.
What Is Strata Insurance and What Does it Cover?
In Queensland, strata insurance is not optional. It is a legal requirement under the Body Corporate and Community Management Act 1997 and accompanying regulations.
The body corporate must insure:
- The full replacement value of the building and common property (where required under the scheme’s format plan); and
- Public liability insurance of at least $10 million for any one occurrence.
In practical terms, strata insurance generally covers the building structure and fixed elements of the property, including:
- Structural walls, roof and foundations
- Built-in kitchens and bathrooms
- Permanent fixtures and cabinetry
- Common property areas
- Public liability for common areas
These obligations are mandatory. Failing to insure, places all owners at significant financial and legal risk and may expose committee members to personal liability.
If a body corporate does not comply with its statutory insurance obligations, a lot owner may apply to the Office of the Commissioner for Body Corporate and Community Management for adjudication. An adjudicator can make an enforceable order requiring the body corporate to obtain the necessary insurance.
Why You Still Need Contents or Landlord Insurance
While strata insurance covers the building and common property, it does not cover everything inside your lot.
Strata insurance generally does not cover:
- Furniture and personal belongings
- Appliances that are not permanently fixed
- Carpet and floating floors (depending on policy wording)
- Legal liability for incidents inside your lot
- Loss of rent linked solely to damage to contents
This is where your own contents or landlord insurance becomes essential.
Contents insurance for Owner occupiers
If you live in the property as an owner-occupier, contents insurance protects the items that make it a home – including your furniture, electronics, appliances, clothing and other personal belongings. It also provides public liability cover for incidents that occur inside your lot, offering protection if someone is injured or their property is damaged within your lot.
Landlords Insurance for Investors
If you lease the property as an investor, landlord insurance is essential. It is designed to protect you against the risks associated with having a tenant in your lot, including loss of rent, legal liability and tenant-related exposures.
A common area of confusion is how loss of rent applies.
Under a landlord policy, loss of rent is usually covered when a rental property becomes uninhabitable due to an insured event that prevents the tenants from living there. Or, if specified, when the tenant stops paying rent. In contrast, strata insurance typically includes loss of rent (or temporary accommodation) only when the building itself suffers damage that renders the lot uninhabitable.
For comprehensive protection, landlords should have both:
- Loss of rent under their landlord policy; and
- Loss of rent under the strata policy.
Strata insurance protects the building. Your own policy protects everything else.
Related content
Share This Post
Subscribe To Our Newsletter
More To Explore
What is a body corporate?
What is a body corporate? Learn how a community titles scheme works, what the body corporate does, and how shared property is managed in Queensland.
Community Gardens in Body Corporate Schemes
Community gardens are more than just green spaces – they’re vibrant hubs where people connect, learn, and create shared value. While they are often found in public parks, schools, and neighbourhood spaces, the same concept can be brought into body corporate communities.