How to make a strata insurance claim: Step by step
Note: This article is intended as a general guide only, and should not be taken as legal or professional advice. It’s essential to consult with a qualified professional or seek advice from your managing agent if you have specific questions or concerns about strata living.
This version of the article was updated on .
The one-minute guide
Two types of claim: Claims for damage to common property go through the OC's building insurance. Claims for your own contents or lot improvements go through your own personal insurance.
First step: Always contact your strata manager first for any damage that may involve common property. Do not arrange repairs yourself without authorisation.
Document everything: Photographs, written descriptions, witness details, and receipts are the foundation of a successful claim. Do this immediately after the incident.
The excess: Strata insurance policies always have an excess. Who pays it depends on how the damage occurred and your scheme's by-laws.
Do not delay: Many policies require notification within a specific timeframe. Delays can reduce or void your entitlement to claim.
Key tip: Keep your own contents insurance and consider landlord insurance if you rent out your lot. Strata building insurance does not cover your personal belongings.
Receiving damage to your property is stressful enough without then facing confusion about whether strata insurance covers it, who you need to call, and what documents you need. This guide walks through the claim process step by step, explains what strata insurance does and does not cover, demystifies the excess, and sets out what to do if your claim is refused or disputed.
What strata insurance covers and what it does not
Before you can make a claim, you need to understand which insurance policy applies to your situation. There are two fundamentally different types of insurance at play in any strata scheme.
The OC's building insurance (mandatory)
Under Section 160 of the Strata Schemes Management Act 2015 (NSW), every OC must hold a building insurance policy that covers the full replacement and reinstatement cost of the building. This policy covers the physical structure of the building and common property. It is mandatory and is paid for through levies.
Standard events covered under a strata building insurance policy typically include:
- Fire, smoke, and explosion
- Storm, hail, lightning, and flood (depending on the policy)
- Burst pipes and water damage from internal sources
- Vandalism and malicious damage
- Impact damage (for example, a vehicle striking the building)
- Earthquake
- Accidental damage to the building structure
The OC must also hold public liability insurance at a minimum of $20 million per event, which covers claims from third parties for injury or property damage occurring on common property.
What the building insurance does not cover
Equally important is understanding what is excluded. Strata building insurance does not typically cover:
- Your personal contents (furniture, clothing, electronics, personal belongings)
- Damage caused by gradual deterioration, wear and tear, or poor maintenance
- Building defects or design errors
- Routine maintenance costs
- Improvements or renovations you have made to your lot that are not part of the original building structure
- Loss of rent or alternative accommodation unless specifically included in the policy
Your own insurance (contents and landlord)
As a lot owner, you need your own separate insurance to cover:
- Contents insurance: Your furniture, appliances, clothing, and personal belongings inside your lot.
- Lot owner's fixtures and fittings: Improvements you have made beyond the original structure (for example, a new kitchen, upgraded bathroom tiles). Some strata policies include 'lot owner's improvements' cover, but this varies. Check your scheme's policy wording.
- Landlord insurance: If you rent your lot, landlord insurance covers loss of rent, tenant damage, and liability specific to the landlord relationship. Standard strata building insurance does not cover these risks.
| Item / situation | Covered by strata building insurance | Covered by owner's own insurance |
|---|---|---|
| Building structure (walls, roof, floors) | Yes | No |
| Common property (lifts, pool, foyer, car parks) | Yes | No |
| Common area fixtures and fittings | Yes | No |
| Original internal fixtures (bathroom, kitchen from registration) | Usually yes (check policy) | Not if covered by strata policy |
| Owner-installed improvements (new kitchen, bathroom upgrade) | Check policy for 'lot owner improvements' | Yes, if not covered by strata policy |
| Personal contents (furniture, clothes, electronics) | No | Yes (contents insurance) |
| Loss of rent during uninhabitable period | Often included (check policy) | Landlord insurance (as backup) |
| Alternative accommodation if lot uninhabitable | Often included (check policy) | Contents or landlord insurance |
| Public liability on common property | Yes (minimum $20 million) | No |
| Public liability within your lot | No | Home and contents or landlord policy |
| Tenant damage | No | Landlord insurance |
| Damage from wear and tear | No | No (excluded from all policies) |
| Building defects | No | No (separate legal remedy) |
| Audience | Relevance | Why it matters |
|---|---|---|
| Lot owners (residents) | Essential | Understanding what is and is not covered prevents the costly mistake of assuming strata insurance covers your personal belongings or improvements. |
| Investors and landlords | Critical | Strata insurance does not cover landlord risks. Separate landlord insurance is essential. |
| Committee members | Critical | You are responsible for ensuring the OC's policy is adequate, current, and valued correctly. |
| Strata managers | Essential | You manage the claim process on behalf of the OC and advise owners on their personal insurance obligations. |
| Tenants | For information | The building insurance does not cover your personal belongings. Renters' contents insurance is strongly recommended. |
TL;DR: Strata building insurance covers the structure and common property. It does not cover your personal contents, improvements you have made to your lot, or landlord risks. You need your own policy for those.
Before you make a claim: essential preparation
Act immediately and safely
When damage occurs, your first priority is always safety. If the damage poses an immediate risk to life or property (for example, a gas leak, structural collapse, or fire), call the relevant emergency services first. Once it is safe to do so, take the following steps immediately.
Document the damage thoroughly
The quality of your documentation is one of the most important factors in a successful claim. Do this before any repairs or cleanup:
- Take photographs and video of all damage from multiple angles. Include wide shots showing context and close-up shots showing detail.
- Photograph any identifying features: unit numbers, common property signage, meter boxes, or other markers that establish where the damage occurred.
- If the damage involves water, photograph the source if it can be safely identified.
- Make a written note of the date, time, and circumstances of the incident while they are fresh.
- If other people witnessed the incident or the damage, record their names and contact details.
- Collect any receipts, quotes, or evidence of the value of damaged items.
Do not arrange repairs without authorisation
Unless you are making emergency repairs to prevent further damage, do not arrange or pay for repairs before the claim process has begun. Unauthorised repairs can complicate or void a claim. The insurer or the OC needs the opportunity to send an assessor and to authorise the work. Emergency temporary repairs (such as boarding up a broken window or placing buckets to contain a leak) are generally acceptable and should be documented. Keep all receipts for any emergency work.
Mitigation: you have a duty to minimise further loss
Insurance policies typically include a duty to mitigate, meaning you must take reasonable steps to prevent further damage after an incident. If you fail to act reasonably to limit the damage, the insurer may reduce your claim payout. For example, if a pipe bursts and you do not turn off the water supply or notify anyone for several days, allowing further water damage to spread, the insurer may argue that part of the damage was preventable. Act promptly, document what you do, and keep receipts for any emergency steps taken.
TL;DR: Document damage immediately with photos and notes before anything is touched or repaired. Do not authorise repairs until the claim is underway, except for genuine emergency mitigation.
The claim process: step by step
| Step | Action | What to do and why |
|---|---|---|
| 1 | Contact your strata manager | For any damage that may involve common property or the building structure, your first call should be to your strata manager. Report the damage in writing (email or through the Netstrata portal or app) so there is a dated record. Describe what happened, when it happened, and attach your photographs. Do not contact the insurer directly at this stage. |
| 2 | Strata manager assesses and notifies insurer | Your strata manager will assess whether the damage falls under the OC's building insurance. If it does, they will notify the insurer and open a claim on behalf of the OC. They will advise you of the claim number and the next steps. If the damage is to your own contents or improvements only, they will confirm this and direct you to make your own claim under your personal policy. |
| 3 | Insurer appoints an assessor | For significant claims, the insurer will appoint a loss assessor or claims manager to inspect the damage. Cooperate fully with the assessor. Provide them with your documentation, answer their questions honestly, and give them reasonable access to inspect. The assessor determines the cause and extent of the damage and recommends whether the claim should be accepted, partially accepted, or declined. |
| 4 | Claim is assessed and decision made | The insurer reviews the assessor's report and makes a decision: (a) accept the claim and authorise repairs or payment; (b) partially accept the claim with adjustments; or (c) decline the claim with reasons. The decision and any offer will be communicated to the strata manager, who will pass it on to you. |
| 5 | Excess is determined and paid | Once the claim is accepted, the excess must be paid before repairs proceed. Who pays the excess depends on the cause of the damage and your scheme's by-laws (see the section below on the excess). The strata manager will advise who is responsible and arrange payment. |
| 6 | Repairs are authorised and carried out | The insurer authorises repairs through their preferred network of contractors, or approves the use of other suitably qualified tradespeople. The OC's strata manager coordinates access and supervises the works. Do not use your own contractors without insurer approval as the insurer may not reimburse unauthorised work. |
| 7 | Claim is finalised | Once repairs are complete and the insurer is satisfied, the claim is closed. Keep a copy of all claim documentation for your records. If the damage affected your personal contents as well, finalise your own claim separately with your contents or landlord insurer. |
Using the Netstrata Owners Portal for claims
Netstrata clients can report maintenance issues and damage through the Owners Portal or Netstrata Space app, which creates a timestamped written record automatically. This record can be valuable when making an insurance claim, as it establishes exactly when the issue was first reported. For urgent damage claims, contact your strata manager directly by phone in addition to lodging through the portal.
Contractor ABN requirement: a trap that can cost you
When the OC or strata manager engages a repairer or contractor to carry out claim work, that contractor must have a valid Australian Business Number (ABN) clearly stated on their invoice. Without an ABN, legislation requires the insurer to withhold 48.5% of the invoice amount, which means the OC cannot be reimbursed in full for the repair. Always confirm that any contractor engaged for claim-related work holds a valid ABN before work begins, and ensure it appears on every invoice submitted. Your strata manager will normally handle this, but it is worth being aware of if you are coordinating emergency work directly.
TL;DR: Always report to your strata manager first. They open the claim, liaise with the insurer, appoint assessors, and coordinate repairs. Your role is to document, cooperate, and avoid arranging unauthorised repairs.
Understanding the excess
Every strata insurance claim involves an excess: the amount that must be paid before the insurer covers the rest. The excess is set out in the policy schedule. In strata, the question of who pays the excess is often more confusing than the claim itself.
The general principle
The party whose act, omission, or negligence caused the damage is generally responsible for paying the excess. This is not always the owner whose lot was damaged. It can be another owner, a tenant, a visitor, a contractor, or the OC itself if the damage resulted from a failure to maintain common property.
Common excess scenarios
- Water damage from a burst pipe in common property: The OC typically pays the excess, as common property maintenance is their responsibility.
- Water leak caused by a neighbour's overflowing bath or failed flexi hose: The owner of the lot where the leak originated is usually responsible for the excess, as the damage was caused by their lot.
- Storm damage to the building or common property: Neither owner nor OC typically caused the storm. In this case, the excess is often shared across all owners through the administrative fund, or absorbed by the OC.
- Damage caused by a tenant: The lot owner is responsible. The owner may then seek to recover the excess from the tenant.
- Break-in or vandalism: Often treated as a shared cost absorbed by the OC, though the policy and by-laws should be checked.
By-laws can vary the default position
Your scheme's by-laws may contain specific provisions about who is responsible for the excess in different circumstances. Some schemes have by-laws that require owners to pay the excess whenever a claim relates to damage originating from their lot, regardless of fault. Others specify how the excess is shared for common event damage. Always check your scheme's by-laws before assuming.
One excess per event, not per lot
Where a single event damages multiple lots in the same building — such as a storm causing water ingress into several apartments, or a burst pipe affecting three units — only one excess applies to the entire claim. The OC should ensure all affected lots are included in a single claim rather than lodged separately. Lodging separately would trigger multiple excesses unnecessarily. Your strata manager will normally coordinate this, but it is important to flag all affected areas at the time of first reporting so nothing is missed.
High excess on water damage claims originating within a lot
Some strata insurance policies include a significantly higher excess for water damage claims where the damage originated from within the lot (for example, a failed flexi hose). These excesses can be $5,000 or more. If you own an investment property or your lot has older plumbing, it is important to understand your policy's excess structure before an incident occurs. Ask your strata manager for a copy of the insurance policy schedule to see the excess amounts that apply.
TL;DR: The excess is paid by the party responsible for the damage. Only one excess applies per event, even if multiple lots are affected. Water damage from within a lot often attracts a higher excess. Check your policy schedule and by-laws to understand your exposure.
If your claim is declined or disputed
Not all claims are accepted, and not all accepted claims result in full payment. Understanding your options when a claim does not go as expected is important.
Why claims are declined
Common reasons for a strata insurance claim being declined include:
- The damage was caused by lack of maintenance, wear and tear, or a pre-existing defect
- The cause of damage is a building defect rather than an insured event
- The claim was not notified promptly or the required timeframe was missed
- The damaged item is not covered under the policy (for example, owner-installed improvements not listed as an endorsement)
- The loss amount is below the excess threshold
What you can do
If the insurer declines the claim or you disagree with the settlement amount, the following options are available:
- Internal dispute resolution: All insurers have an internal dispute resolution (IDR) process. Request a review of the decision in writing, providing any additional evidence or documentation that was not included in the original claim.
- Australian Financial Complaints Authority (AFCA): If the IDR process does not resolve the dispute, you can lodge a complaint with AFCA, which is the external dispute resolution scheme for financial services including insurance. AFCA decisions are binding on the insurer. There is no cost to use AFCA.
- NCAT or court: For disputes about whether the OC has failed in its obligations (rather than disputes with the insurer), NCAT may be the appropriate forum. From 1 July 2025, owners have six years (extended from two years) to bring an action against the OC for failing to maintain common property, which includes situations where a maintenance failure led to damage that the insurer then declined to cover.
The six-year limitation period for OC maintenance failures
The Strata Schemes Legislation Amendment Act 2025 (NSW) extended the time limit for a lot owner to sue the Owners Corporation for losses caused by a failure to repair and maintain common property from two years to six years. This is particularly relevant for slow-developing damage such as gradual water ingress or building defects where the full extent of loss only becomes apparent over time. If an insurer declines your claim on the grounds that the damage was caused by a maintenance failure, this six-year window gives you more time to pursue the OC through NCAT if appropriate.
TL;DR: Declined claims can be challenged through the insurer's IDR process and then AFCA at no cost. Where the OC's maintenance failure caused the damage, owners now have six years to pursue a claim through NCAT.
Practical tips for a successful claim
Before anything happens
- Know your scheme's insurance policy. Ask your strata manager for a copy of the policy schedule so you understand what is covered, what is excluded, and what the excess amounts are for different types of damage.
- Maintain your own contents or landlord insurance. Do not assume strata insurance covers your personal property or rental income.
- Photograph your lot in good condition. Having a dated photographic record of your lot before any damage occurs makes it much easier to demonstrate what was lost or damaged.
- Know your strata manager's emergency contact details and keep them accessible.
When damage occurs
- Prioritise safety first. Call emergency services if needed.
- Photograph and document everything before any cleanup or repairs.
- Report to your strata manager in writing immediately, even if you also call them.
- Make only emergency temporary repairs to prevent further loss. Keep all receipts.
- Do not admit liability to neighbours, tradespeople, or anyone else. Let the insurer's process determine responsibility.
During the claim process
- Cooperate fully and promptly with the insurer's assessor.
- Keep copies of all correspondence, claims documents, and repair reports.
- Ask for written confirmation of each decision made by the insurer or strata manager.
- Ensure any contractor engaged for claim work has a valid ABN stated on their invoice. Without one, the insurer must withhold 48.5% of the invoice amount.
- Do not accept a repair that you believe is inadequate. Raise concerns in writing before signing off.
TL;DR: Know your policy before an incident. Document everything immediately after one. Cooperate fully during the process. Keep copies of everything. Raise concerns in writing before accepting repairs.
Frequently asked questions
Water from the unit above has damaged my ceiling and flooring. Who do I claim through?
This depends on whether the water came from common property or from the lot above. If it came from a shared pipe (common property), claim through the OC's building insurance. If it came from within the lot above (for example, a failed flexi hose or overflowing appliance), the neighbour's actions may make them responsible for the excess, but the claim itself can still often go through the OC's building insurance for the structural damage. Your own contents or floor coverings would need to be claimed through your personal policy. Report to your strata manager immediately and let them make the determination.
The insurer wants to use their own contractors but I would prefer to use someone I trust. Can I insist?
Generally, no. When the insurer authorises and funds the repair, they have the right to appoint the contractors. Their preferred contractors are vetted for the type of work and the insurer takes responsibility for the quality of the repair. If you have concerns about a particular contractor, raise them with your strata manager rather than refusing access. In some cases where the insurer agrees, you may be able to use an alternative contractor, but this requires explicit written agreement from the insurer beforehand.
My claim has been accepted but the repairs are taking months. What can I do?
Delays in strata repairs are unfortunately common, particularly for complex water damage or building defect repairs. Contact your strata manager for a timeline and ask for written updates. If the delay is causing you to incur costs (such as alternative accommodation costs if your lot is uninhabitable), check whether the policy includes loss of rent or alternative accommodation coverage and ensure those costs are being claimed. If delays are unreasonable and caused by the OC's or insurer's inaction, raise this in writing and consider the IDR process with the insurer or NCAT as appropriate.
Can I make a claim if the damage was partly my fault?
Accidental damage is generally an insured event under most strata policies. If you accidentally caused damage to common property, the claim can still be made, but you may be responsible for the excess. Deliberate or reckless damage may be treated differently and could be excluded from cover. If there is any possibility that the damage involves your actions, be honest with the assessor and your strata manager. Misrepresentation of a claim can result in the entire claim being void.
I am a tenant. Can I make a strata insurance claim?
As a tenant, you are not a party to the OC's building insurance policy and cannot make a claim under it directly. If common property damage has affected your lot, notify your landlord immediately so they can report it to the OC and strata manager. Your own personal belongings are not covered by strata insurance. Renters' contents insurance is strongly recommended. If common property damage has made your lot uninhabitable, the Residential Tenancies Act 2010 (NSW) contains provisions about your rights, including the ability to terminate the tenancy without penalty in some circumstances.
Our building has had multiple water damage claims. Will this affect our premiums?
Yes, claims history directly influences strata insurance premiums at renewal. A building with a history of frequent water damage claims is considered a higher risk and premiums will reflect this. This is one of the strongest arguments for proactive building maintenance: addressing known issues before they lead to claims keeps the insurance cost lower for all owners. Your strata manager can provide the claims history and discuss risk mitigation strategies with the insurer or broker at renewal time.
TL;DR: Most common scenarios — water from above, contractor disputes, delays, accidental damage, and tenant rights — are addressed through your strata manager and the insurer's process. Always report promptly and keep written records of everything.
Important
This article provides a general overview of the strata insurance claims process based on NSW legislation and standard industry practice as at the date of publication. Insurance policies vary significantly between insurers and schemes. Always refer to your scheme's current policy wording and Product Disclosure Statement (PDS) for the specific terms, conditions, and exclusions that apply to your building. Relevant legislation: Strata Schemes Management Act 2015 (NSW), Sections 160 to 175 (insurance); Strata Schemes Legislation Amendment Act 2025 (NSW) (six-year limitation period for maintenance failures).
Related reading
- Insurance in strata schemes: coverage requirements and claims — learning.netstrata.com.au
- Why flexi hoses are a ticking time bomb in apartments — learning.netstrata.com.au
- Property management: maintenance and repairs — learning.netstrata.com.au
- Disputes and resolution: conflict resolution processes — learning.netstrata.com.au
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