How to Choose the Best Strata Insurance for You

Apr 12, 2024

Understanding strata insurance is more than just a necessity—it’s a crucial step in ensuring the longevity and security of your property investment. This guide aims to equip you with the knowledge to select the best policy by addressing topics including the basics of strata insurance, how to assess your policy needs, key coverage areas to look for, policy exclusions to be aware of, and the importance of regularly reviewing and updating your cover. 

At Trident Insurance, we pride ourselves on providing strata insurance solutions that are as diverse and dynamic as the properties we protect. With our expertise, we’re here to ensure that your journey towards finding the perfect strata insurance is informed, straightforward, and tailored to the unique requirements of your strata scheme. 

Understanding strata insurance 

Strata insurance covers shared or common property as defined on the title of the property. This typically includes gardens, lifts, walls, roofs, pools, and car parks. The cover is mandatory in Australia, with legislation varying between states and territories regarding the minimum requirements. The policy generally covers common areas for damage due to fires, storms, theft, and more. It may also include liability cover for people injured on common property. 

In Western Australia, the Strata Titles Act 1985 sets the regulatory framework for strata insurance. Under the Act, strata insurance must mandatorily cover the full replacement value of all buildings and common contents on the strata title. This includes ensuring that there is sufficient coverage for the total cost of rebuilding and replacing common property in the event of damage or loss. 

Additionally, the Act requires the inclusion of public liability insurance to protect against claims arising from injuries or damages occurring on common property. This means that if someone is injured within the common areas of the strata property, the insurance should provide cover for legal and medical expenses. The aim is to ensure that both the physical assets of the strata scheme and the people within it are adequately protected against a range of risks and liabilities. 

Assessing your needs 

Before choosing strata insurance, assess the specific needs of your property. Consider factors such as the location of your property, the age and condition of the building, and any specific risks associated with the area, like flooding or bushfires. Evaluate the common facilities that may require additional cover, such as swimming pools or high-tech security systems. Trident Insurance can help tailor a policy to fit these unique requirements, ensuring comprehensive coverage that addresses all aspects of your property’s needs. 

Knowing the key coverage areas in strata insurance policies 

When selecting a strata insurance policy, it’s important to consider coverage across several key areas, including: 

Property damage and loss of rent / Temporary Accommodation: Ensures the building and common areas are covered for repairs and compensates for rental income lost due to damages or temporary accommodation. 

Voluntary workers’ accidents: Provides financial support for volunteers injured on-site, covering lost wages and compensation for serious injuries or death. 

Office bearers’ liability: Protects committee members from legal liabilities resulting from their decisions or actions. 

Fidelity guarantee: Offers compensation if committee members unlawfully take strata funds. 

Equipment breakdown: Covers repair or replacement of essential mechanical and electrical equipment. 

Public liability: Protects against claims if someone is injured or property is damaged on the premises due to negligence. 

Legal expenses: Covers costs associated with legal defence against claims or regulatory breaches. 

At Trident Insurance, we can provide comprehensive insurance solutions that will protect your strata property against each of these risks mentioned above. We offer tailored solutions to ensure robust protection for strata schemes for peace of mind and financial stability. 

Understanding policy exclusions 

Every insurance policy has exclusions. Carefully review what the strata insurance policy does not cover. Common exclusions include wear and tear, mould, or damage from vermin. Make sure you understand these exclusions to avoid surprises in the event of a claim. 

At Trident Insurance, while we can offer a strata insurance policy which provides comprehensive coverage, it’s important to note that not everything can be covered under a Strata policy —these include personal contents within individual units, specific owner upgrades, and fixtures like floating floors, curtains and carpets. Understanding who is responsible for covering these items crucial to avoid surprises in the event of a claim. Our team at Trident Insurance is available to provide detailed explanations about Strata coverage and any exclusions in your policy. 

Reviewing and updating your coverage 

It’s crucial to conduct regular reviews and updates of your strata insurance policy, at least annually, to ensure it mirrors the current value and requirements of your property. This process involves reassessing the property’s replacement value, considering any changes to the building, common areas, or legislation that could affect your insurance requirements.  

Significant property upgrades, changes in state or territory insurance laws, or shifts in the property market could necessitate adjustments to your coverage. Any changes to your requirements should be reported to your insurance provider, ensuring that your strata scheme remains fully protected against potential risks. Keeping your coverage in line with these changes helps safeguard against underinsurance and ensures compliance with legal requirements. 

At Trident Insurance, we can assist with the reviewing and updating process of your strata insurance coverage. Our team can provide expert guidance on assessing your property’s current replacement value and any necessary policy adjustments. We ensure your strata scheme remains adequately protected and compliant with legal requirements, safeguarding against underinsurance and adapting to new needs. 


In the complex world of strata insurance, understanding your policy’s scope, exclusions, and the importance of regular reviews is paramount. Remember, the strength of your strata insurance lies not only in the policy itself but in the adaptability and responsiveness of your insurance provider to the evolving needs of your property. 

At Trident Insurance, we stand ready to support you with comprehensive coverage options, expert advice, and the dedicated service necessary to navigate the challenges and changes your strata may face. Let us be your partner in securing the peace of mind and financial stability that comes from knowing your strata scheme is well-protected for the future. Get in touch with Trident Insurance today. 

Feel free to reach out to our insurance expert today for more information.