What Insurance Is Necessary?

What is Insurance?

Insurance is something people buy to protect themselves from losing money.

Strata Insurance

Under the NSW Act, owners corporations are required by legislation to take out strata insurance cover for the building, common property and common contents managed by them.

Strata insurance covers the following:
– Reinstatement and replacement for buildings on common property
– Public liability insurance for common property areas
– Common property areas such as common walls, floors and ceilings, stairways, gardens, lifts and carparks
– Fixtures and fittings that cover common  areas of the building
– Common property such as appliances, equipment and furniture
– Voluntary workers insurance for volunteers that carry out work

Contents Insurance

The owners corporation is not responsible for contents insurance. They are not obligated to insure belongings inside lot boundaries.
If you are an owner/occupier or renter, it is recommended you take out contents insurance to protect your assets.
Contents insurance generally covers the cost of repairing or replacing personal items such as furniture, curtains/blinds, white goods, computers, TVs, clothing, jewellery, sporting equipment, etc.

Landlord Insurance

If you own a strata property and rent it out, landlord insurance, although not mandatory, is recommended.
Some lending facilities will not loan money to purchase an ‘investment’ property without this insurance.
Landlord insurance generally covers loss of rental income should your tenant leave or default, theft or burglary by tenants or their guests, loss or damage caused by tenants whether accidental or deliberate, legal expenses to evict a tenant.


A duplex is a residential building containing two homes. They can share a common wall or be completely independent of each other (no shared walls).
If you own a duplex with a common wall, building insurance covering both lots is required. It is also recommended that you obtain Contents Insurance for your individual lot.
If both buildings are independent of each other and not joined by any common walls, it is recommended to take out both Building Insurance and Contents Insurance to protect your financial interests (this is the same as owning a house).

Title Insurance

Title Insurance provides cover in relation to certain unknown and hidden risks that may cause you loss or affect your ownership, such as:
– Demolition or upgrade orders issued by the local council in relation to illegal alterations to your strata unit for which you are liable to comply with
– Non compliance with bylaws or other obligations which are registered on your title
– Loss of legal ownership due to a fraudulent sale or mortgage of your property

The advantages of Title Insurance are:
– It’s a one-time premium
– The policy lasts for the period of your ownership
– There are no excesses on claims

If you’d like to know more about Title Insurance, contact Stewart Title direct, they’ll be able to help you with any questions you may have.