Why You May Want To Consider Commercial & Strata Insurance

Whether you occupy the premises yourself, or lease the property out, it is imperative that the rental income and the bricks and mortar are fully protected. Equally important, is ensuring you’re covered for 3rd party actions and liabilities.

Strata Insurance, also called body corporate insurance, covers common contents and property under the management of a strata title or body corporate entity. Owners of strata units typically share the premium costs of strata insurance as part of their strata fees and liabilities. Strata insurance is mandatory and must also
provide public liability covering people that may be injured on common property.

What does strata insurance cover?

Strata insurance generally covers the building and common property and contents as defined on the title for the property. For Residential properties, this might include Lifts, swimming pools, car parks, walls, windows, gardens, ceilings and floors. These policies often have to cover common property that the average home policy does not.

Other common property that you might find is covered under strata insurance may include some of the fixed parts of your unit, such as ducted air conditioning, but it will not cover everything. If you own or lease a strata property you should read the policy carefully so that you understand what is not covered in your unit.

What does strata insurance typically NOT cover?

Strata insurance covers only common or shared property and may list certain exclusions, such as coverage against landslip or flood damage, or for the property’s
fencing.  It is important to remember this type of insurance doesn’t cover the contents and personal items of unit holders or tenants.

What factors contribute to the premium?

In general, strata insurance costs the same or less for each unit owner than the premium paid by the owner of a stand-alone residence or building in the same area.
Each strata insurer develops and offers a unique commercial product in accordance with its underwriting appetite. Some common factors contributing to the premium include:

  • Mandatory requirements of state-based law
  • Government taxes on insurance (stamp duty duty and GST)
  • The age and condition of the building
  • The replacement cost of the building
  • The risk profile of the location
  • The claims history of the strata complex
  • The vulnerability of the insured property to an insured event (age, building codes, building design and materials)
  • Commercial activities carried out on the premises, such as holiday letting
  • Fee and commissions from agents
  • The level of excess payment selected by the body corporate, payable at the time of a claim
  • The costs of common property, for example car parks, stairwells, fire protection systems, lifts and pools

Why you should consider CIA for all your Strata requirements:


With a portfolio of over 2,000 policies under our belts, CIA are experts in Insuring Commercial properties and Owners Corporations.


People often take shortcuts with insurance, by failing to understand the fine print. CIA will ensure that this will not happen to you.


No two properties are ever the same. CIA will ensure that you have the right cover for your unique investment property.


CIA has a dedicated Strata Team providing objective, professional advice based on years of training and experience. We have comprehensive and current knowledge of the insurance market. We will also take care of all your requirements in the event of a claim and negotiate the best possible outcome for you with Insurers.



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