Strata Insurance QLD: What Your Body Corporate Must Insure, What It Costs and How to Compare Quotes (2026)

Last updated: October 2026
Written by Townsville Insurance Brokers, Hermit Park QLD

QUICK ANSWER
Strata insurance in Queensland protects the building and common property of a unit complex, townhouse development or commercial strata scheme. The body corporate arranges it, and all lot owners share the cost through their levies. A policy typically includes building cover, public liability and optional extras such as office-bearer’s liability. Queensland body corporate legislation sets insurance duties, so your committee should review cover every year instead of renewing automatically.

KEY TAKEAWAYS

• Strata insurance covers the building and common property, not each owner’s contents.
• Queensland bodies corporate carry legal insurance duties, including building cover and public liability.
• Cyclone, storm and flood risk makes wording and excesses especially important in North Queensland.
• Under-insurance creates a bigger long-term risk than a higher premium.
• A broker compares insurers and explains how each policy treats cyclone and flood claims.

WHAT IS STRATA INSURANCE?

Strata insurance is the policy your body corporate buys to protect the shared parts of a complex. These include the structure, roof, lifts, driveways, pools, gardens and common walls. Owners pay the premium through body corporate levies. Each lot owner still needs their own contents insurance, and landlords need landlord insurance for rental income and tenant-related risks.

WHO NEEDS STRATA INSURANCE IN QUEENSLAND?

• residential unit and apartment complexes
• townhouse schemes with common property
• commercial strata buildings, such as shop and office complexes
• mixed-use and holiday-let schemes
• committees and body corporate managers who arrange the policy

Queensland body corporate legislation requires schemes to hold insurance. Because the exact obligations depend on your scheme type and regulation module, confirm them with your body corporate manager and broker.

WHAT DOES STRATA INSURANCE USUALLY COVER?

• building damage from fire, storm, cyclone, lightning and impact
• common property, including fences, pools, lifts and shared areas
• public liability for injuries and damage in common areas
• loss of rent or temporary accommodation, where the policy includes it
• office-bearer’s liability, which protects committee members against certain claims
• fidelity guarantee, which covers theft of body corporate funds
• optional extras, such as machinery breakdown and government audit costs

Definitions and sub-limits differ between insurers, so read each policy wording carefully.

WHAT DOES STRATA INSURANCE NOT COVER?

• lot owners’ contents and personal belongings
• tenants’ goods
• wear and tear, gradual damage and poor maintenance
• flood, unless the policy specifically includes it
• some improvements inside a lot, depending on the policy

HOW DO CYCLONES AND FLOODS AFFECT STRATA INSURANCE IN TOWNSVILLE?

North Queensland faces higher natural-hazard risk, so insurers price cyclone and storm cover carefully. The Queensland Government’s cyclone reinsurance pool started in 2022 and aims to lower premiums for eligible property in cyclone-prone areas. Excesses can still run high, and some policies apply a separate cyclone excess.

Ask your broker these questions:

• Does the cyclone or storm excess use a flat amount or a percentage?
• How does the policy define flood?
• Does it include debris removal, temporary repairs and alternative accommodation?
• Does it cover roofs, pools and external structures?

HOW MUCH DOES STRATA INSURANCE COST IN QLD?

Premiums vary widely from scheme to scheme. These factors shape the price:

1. building age, construction type and roof condition
2. the sum insured (replacement value)
3. location, especially cyclone and flood exposure
4. the number of lots and the building height
5. the scheme’s claims history
6. the excess levels
7. extras such as loss of rent and office-bearer’s liability
8. maintenance standards and safety compliance

A low premium can look attractive. However, a high excess, tight sub-limits or an outdated sum insured can cost owners far more after a major event.

WHY DOES THE SUM INSURED MATTER?

The sum insured should match what it would cost to rebuild the building today. Construction costs change, so an old valuation can leave your scheme under-insured. Arrange regular independent replacement valuations, and ask your broker how often your scheme should update its figure.

HOW TO COMPARE STRATA INSURANCE QUOTES

1. Confirm the sum insured with a current replacement valuation.
2. Compare excesses, including the cyclone and water damage excess.
3. Check that the public liability limit meets your scheme’s requirements.
4. Review exclusions, the flood definition and sub-limits.
5. Add extras your committee needs, such as office-bearer’s liability.
6. Check the insurer’s claims handling support.
7. Leave time for owners or the committee to approve the option.

Start 4 to 8 weeks before renewal, so your committee can compare options without pressure.

WHAT HAPPENS WHEN YOUR SCHEME MAKES A CLAIM?
The committee or body corporate manager notifies the insurer, documents the damage and keeps records of repair quotes and photos. Your broker can guide the process, liaise with the insurer and help the committee understand the policy’s response.

WHY USE A BROKER FOR STRATA INSURANCE?
A broker compares insurers for you, explains policy wording and helps your committee present clear options to owners. Townsville Insurance Brokers supports strata, body corporate and commercial building clients across Queensland, from quote to claim.

Request a strata insurance review. Call 1300 270 772 or email quotes@townsvilleinsurancebrokers.com.au. Visit us at Suite 6, 134 Charters Towers Road, Hermit Park QLD 4812.

FREQUENTLY ASKED QUESTIONS

Is strata insurance mandatory in Queensland?
Yes. Queensland legislation places insurance duties on bodies corporate, and the details depend on the scheme and its regulation module.

Who pays for strata insurance?
All lot owners share the premium through body corporate levies.

Does strata insurance cover my contents?
No. Owners need their own contents insurance, and landlords need landlord insurance.

Does strata insurance cover cyclone damage?
Most policies include cyclone and storm cover for the building, but excesses and conditions vary. Always check the wording.

How often should a body corporate review its insurance?
Review it every year before renewal, and update valuations regularly.

Can a body corporate use a broker?
Yes. Many committees use a broker to compare quotes and explain policy terms.

What is office-bearer’s liability?
It protects committee members against certain claims arising from decisions they make while serving the body corporate.

RELATED READING

• Strata Insurance QLD (service page)
• Apartment & Renters Insurance in Australia
• Landlord Insurance QLD
• Cyclone Season Checklist for Townsville Homeowners
• How Much Does Home Insurance Cost in Townsville, QLD?

General Advice Warning: Any advice provided is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you and read the relevant Product Disclosure Statement/Policy Wording before making any decision.