What does my strata insurance cover in New South Wales? - SSKB - Strata Managers | Community Experts

What does my strata insurance cover in New South Wales?

Insurance requirements for strata titled properties can be confusing. Often it is hard to state as a general rule what is covered by the owners corporation and what an owner is responsible for. When it comes to something as significant as insurance, it’s important that you get all the details right the first time, so you’re not financially disadvantaged if an incident occurs.

Owners Corporation

The Strata Schemes Management Act requires the owners corporation to cover the building under a ‘damage’ policy for the cost of replacement or reinstatement to its previous condition, in addition to costs for removal of debris, and architect and similar services.

Fixtures and fittings are also covered under the Owners Corporation building insurance. A fixture is an item that is installed in the unit, and whose removal would require repair work.

  • Carpets in common areas
  • Hot water systems
  • Light fittings
  • Toilets
  • Sinks
  • Shower screens
  • Built-in cupboards
  • Internal doors
  • Common air-conditioning systems
  • Intercom systems

The building must be valued every five years and insured for at least that value.

Owner Occupiers

Owner occupiers are responsible for all personal property and moveable goods (e.g. not fixed) within the unit.  In NSW this also covers internal paint, wallpaper, floor and ceiling coverings and temporary walls.

  • Carpets
  • Light fittings
  • Mobile/fixed air conditioners
  • Curtains and blinds
  • Furniture
  • House hold appliances e.g. dishwashers
  • Valuables and personal equipment

Investment Owners

Landlord’s insurance will cover the items owners are responsible for which are not covered by the owner’s corporation policy (such as carpets, light fittings, dishwashers, air conditioners). Your tenants will be responsible for insuring their own furniture and personal belongings.

Landlord’s insurance will often include other covers such as accidental damage, malicious damage, and loss of rent.


Tenants are responsible for the items they own within the unit, including:

  • Furniture
  • TVs, computers, DVD players
  • Clothes
  • Jewelry
  • Sports equipment

If the above information doesn’t answer all your questions, contact your SSKB Community Manager who will be across all the details to ensure you are appropriately covered.

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