Claims

The Strata Insurance Claims Process Explained

ClaimsGateway

22 Oct 26

•

min read

A strata insurance claim is made on the owners corporation's building policy, usually by the strata manager or committee. The process runs from making the building safe, through notice and assessment, to repairs and payment. Who pays the excess depends on the state, the scheme's by-laws and what caused the damage. Owners claim contents on their own policies.

This article is general information, not legal or compliance advice. Check the current text of the code, standard or legislation, and take advice for your situation.

Key takeaways

The building policy belongs to the owners corporation, so the strata manager or committee usually lodges the claim.
According to the Queensland Government, where only one lot is affected, the owner should usually pay the excess unless the body corporate decides that is unreasonable.
According to Consumer Affairs Victoria, an owners corporation may charge a lot owner the excess only where the claim was caused by that owner's culpable or wilful act or negligence.
In NSW, the scheme's by-laws and the cause of the damage usually decide who pays the excess.
According to AFCA, general insurance complaints reached 36,022 in 2025-26, with delay the most common issue.

Is the damage to common property or to your lot?

Strata building insurance covers the building and common property, and is held by the owners corporation, called a body corporate in Queensland. Each owner's contents, such as furniture and often carpets and appliances, are not covered by it. Owners insure those themselves, on a contents or landlord policy.

The line between building and contents matters. Walls, roofs, lifts and shared pipes are usually building. Floating floors, loose carpets and appliances that are not fixed are often contents. So the first question in any claim is what was damaged.

Each state requires the owners corporation to insure. In Victoria, according to Consumer Affairs Victoria, all owners corporations except two-lot subdivisions must take out reinstatement and replacement insurance, and must hold public liability cover of at least $20 million for common property.

Who lodges a strata insurance claim?

The strata manager or the committee usually lodges a claim on the building policy, because the owners corporation is the policyholder. An owner who notices damage should report it to the strata manager first. An owner lodges directly only on their own contents or landlord policy, or where the scheme's arrangements allow it.

The strata manager acts as the go-between. They report the loss to the insurer or underwriting agency, organise access for assessors and keep the committee informed. Many strata policies are written through specialist underwriting agencies, which then handle the claim for the insurer.

Committees still matter. Large claims, disputes about cause and decisions on the excess may need committee approval. As a result, a slow committee can slow a claim.

What are the steps in a strata insurance claim?

A strata claim usually follows six steps. First, make the building safe and stop further damage. Second, notify the strata manager. Third, the manager lodges the claim with the insurer. Fourth, the insurer or its assessor inspects. Fifth, the insurer decides the claim. Sixth, repairs are carried out and paid for.

Make safe. Stop water, secure broken glass and call emergency trades. Keep receipts, because emergency repairs are often claimable.
Notify the strata manager. Report the damage with photos, dates and which lots and areas are affected.
Lodge the claim. The manager notifies the insurer or agency and provides the policy details.
Assessment. An assessor or builder inspects, often finding the cause as well as the damage.
Decision. The insurer accepts or declines the claim and confirms the excess.
Repairs and payment. Repairs go ahead through the insurer's builders or approved quotes, and payments are made to contractors or the owners corporation.

Cause often decides the outcome. Sudden damage, such as a burst pipe, is usually covered. Gradual damage, such as a long-term leak, or a building defect is often excluded. The strata claims software guide covers how agencies manage that work.

Who pays the excess on a strata claim?

Who pays the excess depends on the state, the scheme's by-laws and what caused the damage. In Queensland, the owner usually pays where only their lot is affected. Victoria lets an owner be charged only where their culpable or wilful act or negligence caused the claim. NSW leaves it mainly to the by-laws and the cause of damage.

Queensland. According to the Queensland Government, where only one lot is affected, "the owner should pay the excess unless the body corporate decides that it is unreasonable for them to do so". Where two or more lots are affected, the body corporate generally pays. In addition, the excess must not create an "unreasonable burden" on individual owners.

Victoria. According to Consumer Affairs Victoria, an owners corporation may separately charge a lot owner an excess or increased premium only "if the claim was caused by a culpable or wilful act or negligence of a lot owner, a lessee, or their guest".

New South Wales. NSW strata law requires the owners corporation to insure the building. In practice, who pays the excess usually depends on the scheme's by-laws and the cause of the damage. Owners should check the by-laws and the policy, and take advice where the amount is large.

How long does a strata insurance claim take?

A simple strata claim can be settled in weeks, while a large loss or a disputed cause can take months. Insurers that subscribe to the General Insurance Code of Practice set out claims timeframes in it, and the Code's quick reference shows which apply to which policies. Ask the insurer which timeframes apply to your policy.

Several things set the pace. A major storm can bring thousands of claims at once, which stretches assessors and builders. Access to several lots, committee approvals and disputes about defects add time too. The Code timeframes reference lists the Code's deadlines.

If a claim is declined or delayed, the owners corporation can use the insurer's internal complaints process first. It may then be able to take the complaint to AFCA, depending on AFCA's eligibility rules. According to AFCA, general insurance complaints reached 36,022 in 2025-26, and delay was the most common issue. The guide to AFCA claims disputes covers the detail.

What slows strata claims down?

Strata claims slow down when several parties must agree, when the cause of damage is unclear, and when damage looks like a building defect rather than an insured event. Water ingress is the classic case: finding where the water comes from can take longer than fixing what it damaged.

Many parties means many hand-offs. The strata manager, committee, owners, tenants, assessors and builders all need information. A missing update to any one of them leads to calls, complaints and delay.

For the insurers and agencies handling these claims, keeping every party's information in one claim record helps. ClaimsGateway (claimsgateway.com) builds cloud claims software for insurers and underwriting agencies, handling property and liability claims among others. The ClaimsGateway underwriting agencies page describes its approach.

Frequently asked questions

Who pays the excess on a strata insurance claim?

It depends on the state, the scheme's by-laws and the cause. In Queensland, the owner usually pays where only their lot is affected. Victoria lets an owner be charged only if their culpable or wilful act or negligence caused the claim. NSW leaves it mainly to the by-laws and the cause.

Can an owner make a claim on strata insurance?

An owner usually cannot lodge a claim on the building policy directly, because the owners corporation is the policyholder. Instead, the owner reports the damage to the strata manager, who lodges the claim. Owners claim for their contents, such as furniture, on their own contents or landlord policy.

How long does a strata insurance claim take?

Simple claims can be settled in weeks. Large losses, disputed causes, defects and claims affecting several lots can take months. Insurers that subscribe to the General Insurance Code of Practice set claims timeframes in it, so ask the insurer which timeframes apply to the owners corporation's policy.

What does strata insurance not cover?

Strata insurance usually does not cover owners' contents, such as furniture, and often excludes floating floors, loose carpets and appliances that are not fixed. It also commonly excludes gradual damage, such as long-term leaks, and building defects. Each policy differs, so check the wording and the product disclosure statement.

What if the strata insurer declines the claim?

Ask the insurer for its reasons in writing, then use its internal complaints process. If the complaint is not resolved, the owners corporation may be able to take it to AFCA, depending on AFCA's eligibility rules. Strata managers and lawyers can advise on whether the decline can be challenged.

About the author

ClaimsGateway builds cloud claims management software for insurers, underwriting agencies, brokers, TPAs and self-insured organisations in Australia and New Zealand. Every regulator figure in this article links to its source, and every vendor fact was checked on the vendor's own site on the date shown.