NSW Strata Insurance Guide: Coverage, exclusions & owner responsibilities

Introduction

Strata insurance is often misunderstood. Many owners assume “the building is covered” means everything inside their lot is too — but that’s not the case. This guide breaks down what strata insurance usually covers in NSW, what it doesn’t, and what you as a lot owner are responsible for.

Strata insurance protects the building and common property - but not everything inside your lot

1. What Strata Insurance Usually Covers

Strata insurance policies in NSW generally include:

• Building & common property (walls, roofs, lifts, shared areas)

• Public liability (injury on common property)

• Workers’ compensation (if the scheme employs staff)

• Some fixtures (depending on the by-laws and policy wording)

This means the “skeleton” of the building and shared assets are protected.

2. What’s Not Covered (Owner Responsibilities)

Strata insurance does not cover everything. Lot owners are usually responsible for:

• Carpets, curtains, and personal belongings

• Appliances, furniture, and electronics

• Renovations or upgrades (e.g. kitchen or bathroom improvements)

• Accidental damage within their own lot

• Loss of rent or temporary accommodation (unless separately insured)

Without personal contents insurance, owners can be left exposed.

3. Common Exclusions in Strata Insurance

Even common property insurance has exclusions. These may include:

• Gradual wear and tear

• Mould, pests, and vermin damage

• Faulty workmanship or unapproved renovations

• Flood damage (unless specifically included)

Always review your scheme’s policy to understand the exclusions.

4. Owner Obligations in NSW

Under NSW legislation, owners have responsibilities too:

• Report damage promptly

• Maintain fittings inside their lot

• Follow by-laws and safety requirements

• Ensure their renovations are compliant and covered if necessary

Failing to do so can void insurance coverage.

Conclusion

Strata insurance in NSW is essential but limited — it protects the building and common property, not your personal lot. Knowing the difference between scheme cover and your own insurance needs helps avoid costly surprises.

Need guidance on strata insurance? Centric Strata works with owners and committees to ensure schemes are properly covered and owners understand their responsibilities.