Understanding Insurance for Survey-Strata Schemes

In WA, properties can be part of a ‘built strata’ scheme or a survey-strata scheme.

In both types of scheme, owners share ownership and responsibility for common property. However, in a survey-strata scheme, only lot boundaries and common property are shown on the survey-strata plan. It doesn’t show any buildings. This has some implications for insurance arrangements. There are two ways survey-strata schemes can insure common property and lots – individually or together.

1. Individual Covers

   With this option, the strata scheme and lot owners takes responsibility for their own insurance.

a) Strata scheme insures the common property

By law, the strata scheme must insure all insurable assets to replacement value or, for a specific event, replacement value up to a maximum amount specified in the contract of insurance that is a reasonable limitation in the circumstances.

Insurable assets must be insured against fire, storm and tempest (excluding damage by sea, flood or erosion), lightning, explosion and earthquake.

The scheme must also have public liability insurance of not less than $10 million for events that might occur on common property. This includes damage to property, death, bodily injury or illness.

b) Owners choose whether to insure their lot

An owner can decide whether to insure their buildings, improvements and/or contents on their lot and/or to take out public liability insurance. The scope and terms of any insurance policy are also at their discretion. However, we strongly recommend owners take out sufficient cover to replace their building and improvements, much like a Green Titled property.

2. Combined Covers

   This option can only be used when the strata scheme passes a unanimous resolution that it will obtain insurance for each lot, as well as for common property.

   
   

   a) Strata scheme insures common property and the lots The scheme is bound by the same obligations regardless of whether it’s just insuring the common property or individual lots too.

b) Owners choose whether to insure their contents and personal effects

An owner can again decide whether to insure the contents of their lot, and the scope and terms of any insurance policy are also at their discretion.

Read more about insurance for Survey-Strata Schemes in WA and learn about the benefits and disadvantages of each below.

BCB SCA WA Understanding insurance for survey-strata schemes FINAL 2025.pdf

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This article was bought to you by SCA (WA) sponsor Body Corporate Brokers (BCB)