The first question in body corporate insurance QLD committees face is not price. It is which parts of the property belong on the scheme’s policy and which belong on the lot owner’s. Queensland uses its own terminology, applies different arrangements depending on how a scheme was set up, and sits in a climate where cyclone, storm and flood are real planning issues. This guide sets out the practical questions. For the cover itself, see our strata insurance page.
Queensland Terminology in Plain Terms
- Community titles scheme. The Queensland name for what other states call a strata scheme: the lots, the common property and the body corporate together.
- Body corporate. All the lot owners acting together. The body corporate holds the scheme’s insurance.
- Lot owner. The owner of an individual unit, townhouse or lot.
- Common property. The parts of the scheme that are not within a lot, such as driveways, gardens, pools and, in many schemes, parts of the building structure.
- Community management statement. The document that records the scheme’s by-laws, lot entitlements and the regulation module it operates under.
- Committee. Owners elected to make day-to-day decisions, often with a body corporate manager handling administration and insurance renewals.
Why the Plan Type and Module Matter
Two schemes that look similar from the street can have quite different insurance arrangements. A block of units is usually registered on a building format plan, where lot boundaries follow the walls, floors and ceilings of the building. Many townhouse and house-lot schemes are registered on a standard format plan, where lot boundaries are drawn on the ground and a building can sit entirely within a lot.
That difference can change who insures the building on each lot. So can the regulation module the scheme operates under, and some small schemes have their own arrangements. The legislation sets out the scheme’s insurance obligations, and those requirements change from time to time. Check the current legislative requirements for your scheme, read your community management statement, and ask your body corporate manager to confirm how your scheme is set up before relying on any general rule.
Body Corporate Insurance QLD: What the Scheme Insures
A typical scheme policy is built from several sections:
- Building. The structure and common property, usually on a reinstatement and replacement basis.
- Public liability. For injury or property damage on common property, such as a trip on a stair, a falling branch or an incident at the pool.
- Office bearers’ liability. For claims arising from committee decisions.
- Fidelity cover. For misappropriation of scheme funds.
- Voluntary workers. For owners who help with gardening or maintenance.
- Machinery breakdown. For lifts, pumps, gates and air-conditioning plant.
- Common area contents. Pool furniture, gym equipment and carpets in common areas.
- Loss of rent or temporary accommodation. If lots become unlivable after insured damage.
Some of these sections are required and some are optional. The policy schedule and your manager’s records show which your scheme carries and at what limits. Our residential strata insurance page sets out the options in more detail.
What Lot Owners Insure
The scheme’s building policy is not designed to insure everything inside a lot. Lot owners commonly arrange:
- Contents. Furniture, personal belongings and, depending on the scheme and wording, items such as floating floors, blinds and curtains. Home and contents insurance is the usual place for these.
- Improvements. Kitchens, bathrooms and other upgrades an owner has added. Whether the building policy picks these up depends on the scheme and the wording, so check before you renovate and tell the manager when the work is finished.
- Landlord cover. Loss of rent and tenant damage, which the scheme policy generally does not respond to.
- Liability inside the lot. The scheme’s public liability is designed around common property. An injury inside a lot is usually a matter for the owner’s or occupier’s own policy.
Cyclone, Storm and Flood
Queensland schemes need to think about weather in a way many southern schemes do not.
- Definitions. Storm, flood, storm surge and rainwater run-off are defined separately in many policies. The definition decides whether a claim is paid, so read the wording, not the brochure.
- Flood cover. Some policies include flood, some offer it as an option, and some exclude it. Know which applies to your scheme and record the committee’s decision in the minutes.
- Storm surge. Coastal schemes should check how storm surge and actions of the sea are treated, as they are often handled differently from flood.
- Cyclone excess. Some policies apply a separate or higher excess for cyclone or storm events in northern regions. Know the figure and plan how the scheme would fund it.
- Embargoes. Insurers commonly stop accepting new policies or increases in cover once a cyclone or major storm is forecast. Renewals, sum insured increases and any change of policy need to be settled well before the season, not while a system is forming offshore.
Practical preparation still matters: gutters and drains cleared, loose items on balconies and common areas secured, and dated photos of common property taken before the season as a record of its condition.
Keeping the Valuation Current
The building sum insured should reflect the cost of rebuilding the scheme today, including demolition and removal of debris, professional fees and the cost increases that occur during a long rebuild. After a regional cyclone or flood, building costs and trade availability can move quickly, which is exactly when an out-of-date valuation hurts.
The legislation sets requirements for how often a scheme must obtain a valuation, so check the current requirement rather than relying on what was done last time. Between formal valuations, ask your valuer or broker whether an indexation adjustment is sensible. Our guide to underinsurance and co-insurance explains how a shortfall can reduce a claim payment.
What to Disclose at Renewal
The scheme’s renewal is only as good as the information behind it. Committees and managers should give the broker a full picture each year, including:
- Known building defects, water ingress, concrete cancer or cladding concerns, and any remediation under way.
- Claims and incidents since the last renewal, including ones that fell below the excess.
- Changes in how lots are used, such as new short-term letting or a commercial tenancy.
- Major works completed, such as roof replacements, lift upgrades or new fire systems.
Leaving something out can affect how a later claim is handled, and documenting improvements can help the scheme present better to underwriters.
Mixed-Use and Commercial Schemes
Schemes with shops, offices or short-term letting present differently to underwriters. The occupancy of commercial lots, cooking in food tenancies and holiday letting all change the risk. Tell your broker about every non-residential use, and see our page on commercial strata insurance for how those schemes are placed.
Common Questions
Who pays the excess on a claim?
It depends on the scheme’s by-laws, any committee resolution, the cause of the damage and the current legislative requirements. Check your by-laws and ask your manager before a claim, not during one.
Does the scheme’s policy protect my tenant’s belongings?
Generally not. Tenants need their own contents insurance, and landlords need their own cover for loss of rent and tenant damage.
How do we know if our building is underinsured?
Compare the building sum insured with a current reinstatement valuation. If the valuation is old, or there has been a major weather event in the region since, have it reviewed.
Talk It Through
Request a strata quote or call 1300 983 940 and we will review your scheme’s strata insurance against how the building is actually set up.
General advice only. This article does not take your objectives, financial situation or needs into account. Consider the relevant PDS and Target Market Determination before deciding on a policy.