Australia | Insurance
Strata Insurance: What the Law Requires
Every strata scheme in New South Wales, Queensland and Victoria must carry insurance in its own name, with a few exceptions for two-lot schemes. The states set different minimum amounts and valuation rules, and split the premium between owners in different ways. Some cover is left for each owner to arrange.
The short answer
- Strata insurance is the policy the scheme itself holds, in its own name, for the building and for injuries to people on the common property.
- NSW Fair Trading says "Strata insurance is mandatory in NSW". Queensland and Victoria also require it, through the Small Schemes Module and the Owners Corporations Act 2006.
- The minimum public liability cover is $20 million in NSW and Victoria, and $10 million in Queensland.
- Queensland and Victoria require a valuation of the building at least every 5 years. NSW Fair Trading advises one every 2 to 5 years.
- Two-lot schemes have exceptions in all three states, and the owners may then need to insure on their own.
What each state requires
Scroll the table sideways on a phone. Queensland figures are for the Small Schemes Module unless the row says otherwise.
| New South Wales | Queensland | Victoria | |
|---|---|---|---|
| Building cover | Required (building insurance) | Common property and body corporate assets at full replacement value; each building at full replacement value where lots are on a building or volumetric format plan | Reinstatement and replacement cover for all buildings on the common property, and in some cases the buildings on the lots |
| Public liability minimum | $20 million | $10m for one event and $10m in one period of insurance | $20,000,000 for any one claim and in total for one period of insurance |
| Other cover required | Work health and safety insurance, unless the scheme employs no workers (contractors aside) and is residential only | None found in the module sections we read | None found in the Act sections we read |
| Valuation | Fair Trading advises a new valuation every 2 to 5 years by a qualified valuer | Independent valuation of full replacement value at least every 5 years | Every 5 years or sooner; tier five owners corporations are exempt |
| How the premium is split | Through the levies, which follow unit entitlement | By interest schedule lot entitlement | Insurance fees may be levied separately, by lot entitlement |
| Two-lot schemes | No strata building insurance needed if the buildings are separate, nothing sits outside the two lots, and the owners agree unanimously | Specified two-lot schemes still need $10m public liability | A 2-lot owners corporation is exempt from the building, public liability and valuation rules |
NSW rules are from NSW Fair Trading's finance and insurance pages (22 June 2026). Queensland rules are from the Small Schemes Module (s 116, s 117, s 119, s 123, s 125), the Standard Module (s 200, s 206) and the Specified Two-lot Schemes Module (s 56), all current as at 1 August 2025. Victorian rules are from the Owners Corporations Act 2006 (s 7A, s 23A, s 59 to s 65) as at 9 September 2026.
New South Wales
NSW Fair Trading: "Strata insurance is mandatory in NSW." A scheme must hold three kinds of cover: building insurance, public liability insurance of at least $20 million, and work health and safety insurance. The third is not needed when the scheme employs no workers (contractors do not count) and the complex is residential only.
The treasurer is responsible for the insurance unless the job is handed to the strata manager. A manager who arranges it must get at least 3 separate quotes, or explain in writing why that is not possible, and since 3 February 2025 insurance quotes must be itemised. Fair Trading advises a new building valuation every 2 to 5 years by a qualified valuer.
A two-lot scheme does not need strata building insurance when the buildings on the two lots are physically separate, no building or part of a building sits outside the two lots, and the owners corporation passes a unanimous vote. The owners may then insure their buildings on their own.
Queensland
The Body Corporate and Community Management Act 1997 lets the regulation module set the insurance a body corporate needs (s 189). Under the Small Schemes Module, for schemes of up to 6 lots, the body corporate must insure the common property and its assets for full replacement value (s 116). Where the lots are on a building format or volumetric format plan, it must also insure each building for full replacement value (s 117).
Where the lots are on a standard format plan and the buildings stand alone, the body corporate may set up an optional "voluntary insurance scheme" for them (s 123). It needs an independent valuation of full replacement value at least every 5 years (s 119), and public risk insurance of at least $10 million for a single event and $10 million in a single period of insurance (s 125).
The Standard Module and the Specified Two-lot Schemes Module set the same $10 million public risk minimum (Standard Module s 206; Two-lot Module s 56). Insurance premiums are levied by interest schedule lot entitlement (Small Schemes Module s 116(4)).
Victoria
An owners corporation must take out reinstatement and replacement insurance for all buildings on the common property (Owners Corporations Act 2006, s 59). If a building sits above or below common property, a reserve or a lot, it must insure the buildings on all the lots too, except a single-storey building (s 61). Public liability cover must be at least $20,000,000 for any one claim and in total for any one period of insurance (s 60(3)). Buildings must be valued every 5 years or sooner, except in tier five (s 65).
With no common property, a unanimous resolution can leave each owner to insure their own lot (s 63). Where the lots are several single homes with common property, a unanimous resolution can make each owner responsible for insuring their lot (s 61A). Insurance fees may be levied separately, by lot entitlement (s 23A).
A 2-lot owners corporation is exempt from sections 59, 60, 61, 61A, 62 and 65 (s 7A). Consumer Affairs Victoria says this means it does not have to take out building or public liability insurance in the owners corporation's name. The same page says the owners "are responsible for any common property and risk significant legal and financial liabilities", and tells them to ask their insurer about cover.
What each owner insures
The cover the state laws above require of the scheme is for the building and public liability. Your furniture and belongings are a question for your own insurer. Before you buy, ask the scheme for its current policy and read what it covers inside your lot, then ask your insurer what a policy for a strata owner adds.
In a two-lot scheme that uses its exemption (NSW and Victoria), or in a Queensland scheme with stand-alone homes and no voluntary insurance scheme, the owners may need to insure their own buildings. Write down who insures what, and keep the policies with the scheme's records.
Insurance dates to track
- The policy renewal date, every year.
- The next building valuation: within 5 years of the last one in Queensland and Victoria (outside tier five), and every 2 to 5 years on NSW Fair Trading's advice.
- The levy notice that collects the premium, with the notice period your state sets.
- In a NSW two-lot scheme that has skipped strata building insurance, each owner's own policy renewal.
Common questions
What is strata insurance? +
It is the insurance policy a strata scheme, body corporate or owners corporation holds in its own name. It covers the building the scheme must insure and public liability for injuries on the common property. Each owner pays a share of the premium through their levies.
Is strata insurance mandatory? +
Yes, in all three states, with exceptions for some two-lot schemes. NSW Fair Trading: "Strata insurance is mandatory in NSW." Queensland's regulation modules require building and public risk cover. Victoria's Owners Corporations Act 2006 requires building and public liability cover (s 59, s 60).
What does strata insurance cover? +
The law sets the minimum: the building the scheme must insure, at full replacement or reinstatement value, and public liability of at least $20 million in NSW and Victoria or $10 million in Queensland. NSW also requires workers insurance in some schemes. What the policy covers beyond that depends on the policy, so ask the scheme for a copy.
Do I need home insurance if I have body corporate insurance? +
The cover these laws require of the scheme is for the building and public liability. Your furniture and belongings are a question for your own insurer: ask what a policy for a strata owner covers, and compare it with the scheme's policy. In a two-lot scheme that has used its exemption, the owners may need to insure their own buildings too.
Who arranges strata insurance? +
The owners corporation or body corporate holds the policy. In NSW the treasurer is responsible unless the job is given to the strata manager, and a manager must get at least 3 separate quotes or explain in writing why that is not possible.
How much public liability does a strata scheme need? +
At least $20 million in NSW and Victoria. In Queensland, at least $10 million for a single event and $10 million in a single period of insurance, under each of the Small Schemes, Standard and Specified Two-lot Schemes modules.
How often must the building be valued for insurance? +
In Queensland, an independent valuation at least every 5 years (Small Schemes Module s 119; Standard Module s 200). In Victoria, every 5 years or sooner, except tier five owners corporations (Owners Corporations Act 2006, s 65). NSW Fair Trading advises every 2 to 5 years.
Does a duplex need strata insurance in NSW? +
A two-lot scheme can skip strata building insurance if the buildings on the two lots are physically separate, no building or part of one sits outside the two lots, and the owners corporation passes a unanimous vote. The owners may then insure their own buildings. Public liability is a separate question; check it with Fair Trading and your insurer.
Does a two-lot owners corporation in Victoria need insurance? +
Section 7A of the Owners Corporations Act 2006 exempts it from the insurance and valuation sections. Consumer Affairs Victoria says this means it does not have to take out building or public liability insurance in the owners corporation's name, and that the owners are still responsible for any common property and should ask their insurer about cover.
Can each owner insure their own home instead of the scheme? +
In some schemes. In Victoria, with no common property, a unanimous resolution can leave each owner to insure their own lot (s 63), and for several single homes with common property a unanimous resolution can make each owner insure their lot (s 61A). In Queensland, where lots on a standard format plan have stand-alone buildings, the body corporate may set up an optional voluntary insurance scheme (Small Schemes Module s 123).
How is the strata insurance premium shared? +
In Queensland, by interest schedule lot entitlement, which follows market value. In Victoria, insurance fees may be levied separately by lot entitlement. In NSW owners pay through their levies, which follow unit entitlement.
What is workers insurance for strata in NSW? +
NSW Fair Trading lists work health and safety insurance as a third required policy. It is not needed if the scheme employs no workers (contractors do not count) and the complex is residential only.
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