KEY TAKE-OUTS: Strata Properties include apartments, townhouses, and some standalone homes that share common property with neighboring lots. In NSW, the Owner Corporation is legally required to maintain strata insurance covering the building and common property Strata insurance does not typically cover personal belongings, removable contentd contents, or owner-made renovation, making contents or landlord insurance an important consideration How to Know if You’re Buying a Strata Unit A strata-titled property can take several forms. Most commonly, it is an apartment in a residential complex, but it can also include townhouses within a development or even a standalone house that shares common property, such as a driveway, garden, or access way with neighbouring lots. If you are purchasing a strata property, it will appear on the title search as a “lot” within a Strata Plan (SP). Your conveyancer will review this during the contract review process and explain what it means for your ownership rights and responsibilities. Strata Insurance In New South Wales, the Owners Corporation is legally required to hold strata insurance covering the building and common property. This requirement is set out under the Strata Schemes Management Act 2015 (NSW). Section 160 of the Strata Schemes Management Act 2015 (NSW) Strata insurance is designed to protect the shared property against major risks such as fire, storm, flood, and accidental damage. Importantly, it must provide cover for the full cost of rebuilding or restoring the building to its original condition, ensuring owners are financially protected if significant damage occurs. Typically, strata insurance includes cover for: The building structure and common property, such as walls, floors, ceilings, roof, foundations, stairwells, lifts, lobbies, car parks, gardens, and fences. Original fixtures and fittings installed when the strata plan was registered, including kitchens, bathrooms, doors, windows, cabinetry, and light fittings. Public liability, which protects the Owners Corporation if someone is injured in a common area (for example, slips, trips, or falls). Workers compensation, if the Owners Corporation employs staff such as building managers or cleaners. Damage caused by insured events such as fire, storms, lightning, explosions, burst pipes or water leaks, vandalism, and theft. Coverage can vary between insurers, so it is important to carefully review the Product Disclosure Statement (PDS) to understand exactly what is included and excluded. What Strata Insurance Does Not Cover Strata insurance does not extend to everything within your individual lot. Common exclusions include: Personal belongings, furniture, and portable items. Renovations or upgrades carried out by individual owners, unless specifically declared and insured. Contents that are typically removable, such as curtains, carpets, and household appliances. Because of these gaps, lot owners should consider taking out their own contents insurance or, in the case of investment properties, landlord insurance. Additional Considerations • Any renovations or improvements may need to be disclosed to the Owners Corporation and could affect insurance arrangements or the sum insured. • Strata insurance premiums are paid collectively by owners through strata levies and are influenced by factors such as building size, location, and risk profile. • Understanding what is and isn’t covered helps owners and committees maintain adequate protection while ensuring individuals arrange appropriate personal insurance where needed. Further Information For more details on living in strata in NSW, you can refer to the official guide on the NSW Government website The experienced Property & Conveyancing team at Coutts Lawyers & Conveyancers can help ensure you understand your land tax obligations. Contact us on 1300 COUTTS to speak with a property law expert today. ABOUT NELLY TONG Nelly joined the Coutts Property Law and Conveyancing team in March 2025, working from our Campbelltown Office. Nelly has acquired her Conveyancing Studies at Macquarie University with Distinction. For further information, please don’t hesitate to contact: Nelly Tong Conveyancer info@couttslegal.com.au 1300 268 887 Contact Coutts today. This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you. Contact Us