Strata insurance for common areas

CHOICE is looking into the issue of rising insurance costs for strata owners - specifically the costs that unit owners pay to cover common areas of the building. Have your strata insurance costs been going up? Please get in touch.


No doubt this type of insurance will be going up. You need it to cover the little thieving b’stards who want to break in to your place. You don’t want them to get hurt with no retribution.

In the last couple of years it seems that our strata insurance has doubled. Although I live in suburban Melbourne, are we swelling insurance companies’ vast unpaid bushfire windfall? If only rural bushfire/disaster sufferers were promptly paid out and enabled to rebuild, the increases would somehow feel reasonable.

Our Owners Corporation insurance has gone up almost threefold in the last 2 years! It covers home buildings and common property (driveways and fences). In that time, we have had one small claim ($2K) and a larger ongoing claim dating back two years! They are happy to take your money, not so happy to pay it out. Major claim was for storm damage to the home of a widowed single mum of 2.

Welcome to the community @Rog

A three fold increases seems excessive for recent years. Does your Strata use the services of a business as a manager for the strata, or is the strata self managing?

Has your Strata provided competitive quotes from 2 or more insurers for renewal each year? In the instance the Strata pays for the services of a specialist manager, some are more diligent than others. Some may have a direct relationship with a broker, hopefully declared and the renumeration arrangements shared with all owners.

Is there anything special about the nature of the properties included in the strata that might have influenced the cost of cover? It’s not unknown for very new Strata properties to start with low fees and special deals for the first few years. The builders constructors liability obligations legislated differ in each jurisdiction and ultimately expire. For that initial period of time many of the risks assumed by the Strata may be covered by the builder reducing the cost to cover that one liability.

Is there any more you might be able to share about the strata property, location or relevant history…

Welcome to the community @Daz

Insurers, more importantly the underwriters look to the location of your property first and construction details second. Recent claims history is unlikely to change the ratings based on the key risk rankings which will be independently assessed. Although any recent significant claims may add weight to increasing the risk.

Have you looked to the current flood mapping for your area and site?
EG Predictive flood inundation maps | Cairns Regional Council
Insurers may have more detailed maps where they consider future possible risks, and the unreliability of the Q100 flood risk, (once in one hundred years).

Recent history of major events hitting regional centres are showing significant delays in reconstruction, as well as providing alternate accommodation for those affected or brought in to rebuild. Not to mention the cost increases in building materials.

We’ve seen similar price increases over the past 2 years combined for Brisbane Strata (not a flood area) and SE rural.

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We’ve just released our investigation into strata insurance commissions and how it’s affecting individual strata owners. You can read it here:

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