Owning an investment unit or apartment in a strata scheme is one of the most common forms of property investment in Australia. But many strata lot owners are confused about what their strata insurance actually covers — and where their personal landlord insurance needs to pick up. Getting this right is critical to avoiding costly gaps in protection.
What the Strata Insurance Covers
The owners corporation strata insurance policy covers the building structure and common areas — walls, roof, lifts, lobbies, and shared facilities. In most cases it also covers fixtures within individual lots that were original to the building, such as built-in wardrobes, baths, and kitchen cabinetry.
However, strata insurance does not cover your personal contents inside the unit, any improvements you have made, loss of rental income, or your liability as a landlord.
What Landlord Insurance Covers for Strata Investors
- Landlord contents — carpets, curtains, light fittings, and appliances you own inside the unit.
- Tenant damage — malicious or accidental damage caused by tenants beyond normal wear and tear.
- Loss of rent — if the unit becomes uninhabitable following a covered event, or a tenant defaults.
- Legal liability — your liability as the lot owner if someone is injured inside your unit.
- Legal expenses — costs of pursuing a tenant through NCAT or another tribunal.
Do You Need Building Cover in a Strata?
Generally no — the owners corporation strata insurance covers the building. However, if you have made significant improvements to your lot beyond the original fixtures (such as a renovated kitchen or bathroom), those improvements may not be covered under the strata policy and you may need to arrange separate cover.
Get the Right Cover With HC Insurance
Understanding the interplay between strata insurance and your personal landlord policy can be complex. At HC Insurance, our brokers specialise in both areas and will help you ensure there are no gaps between the two. Contact us today for expert, obligation-free advice.