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Modern commercial building common areas including lobby and shared spaces

Strata Common Property Insurance

Understanding what's covered as common property in your strata scheme. From building structure to shared amenities, common property insurance is the foundation of every strata policy.

Common

Property Cover

Full

Replacement Cost

Accurate

Valuations

Recognition

Industry Awards

Common property makes up the majority of a strata scheme's insurable value. Getting the coverage and sum insured right is the single most important decision a strata committee makes about insurance.

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Underinsurance Risk

If the sum insured doesn't reflect the true replacement cost, the owners corporation risks having claims reduced under the average clause. This can leave a significant shortfall that lot owners must fund through special levies. We help ensure valuations are current and adequate.

More Than Just the Building

Common property includes everything from the building structure to car parks, gardens, building plant, and shared amenities. Commercial strata schemes often have more extensive common property than residential schemes.

WHY TANK INSURANCE

Why strata committees trust us with common property cover

Common property insurance is the core of every strata policy. We ensure the coverage is comprehensive and the sum insured reflects true replacement cost.

Modern commercial building lobby representing strata common property

01

Valuation Guidance

We advise when a building valuation is needed and work with qualified valuers to ensure the sum insured accounts for replacement cost, not market value.

02

Comprehensive Coverage Review

We check that all common property elements are captured in the policy, including items that are often overlooked like fencing, retaining walls, and external structures.

03

Liability Adequacy

Public liability in common areas must reflect the actual foot traffic and risk profile. We assess and recommend appropriate limits for commercial strata schemes.

04

Claim Support

When common property is damaged, we manage the claim from lodgement through to settlement. We advocate for the owners corporation and push for fair outcomes.

RISK LANDSCAPE

Key Risks to Strata Common Property

Common property in commercial strata buildings faces a wide range of risks. Your policy must address all of them.

Slip-and-fall injuries in lobbies, car parks, walkways, and shared amenities
Water damage from burst pipes in risers, common area bathrooms, and roof leaks
Fire damage to corridors, stairwells, and shared storage areas
Malicious damage and vandalism to car parks, lifts, and external common areas
Storm damage to roofing, fencing, landscaping, and external structures
Theft of common property items including fixtures, fittings, and equipment
Liability claims from contractors, delivery drivers, and visitors in common areas
Glass breakage in common area glazing, entry doors, and shared shopfront facades

Commercial strata buildings have more extensive and higher-value common property than residential schemes. Higher foot traffic, more building plant, and larger shared areas all increase the risk profile.

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POLICY SCOPE

What Strata Common Property Insurance Covers

A comprehensive strata policy covers the building structure and all common property owned by the owners corporation.

Commercial building exterior showing shared areas and common property elements
Commercial building exterior showing shared areas and common property elements

Usually Covered

✓ Building structure: external walls, roof, floors, stairwells, and structural elements
✓ Internal common areas: lobbies, corridors, bathrooms, and shared amenities
✓ External common property: car parks, driveways, fencing, landscaping, and signage
✓ Building plant: lifts, HVAC, switchboards, fire systems (with machinery breakdown)
✓ Public liability for injury or property damage in all common areas
✓ Loss of rent for common property areas during repairs after an insured event

Not Typically Covered

✕ Individual lot interiors beyond the common property boundary
✕ Tenant fitouts, stock, and business contents
✕ Wear and tear, gradual deterioration, and deferred maintenance
✕ Building defects and latent conditions
✕ Improvements made by lot owners without owners corporation approval
✕ Individual lot owner landlord liability (requires landlord insurance)

The strata plan defines what is common property and what belongs to individual lots. We review this to ensure the policy correctly reflects the scheme's common property boundaries.

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QUESTIONS

Strata Common Property Insurance FAQs

Common property is everything in a strata scheme that doesn't belong to an individual lot. This includes: the building structure (walls, roof, floors), lobbies and corridors, lifts and stairwells, car parks and driveways, gardens and landscaping, pools and gyms, loading docks, fencing, and shared amenities. The owners corporation is responsible for insuring and maintaining common property. The scope of common property varies by building type — see our guides for office buildings, retail centres, and mixed-use buildings.
The owners corporation is legally required to insure the building and common property under strata legislation in every Australian state and territory. This obligation falls on the strata committee and is funded through levies paid by all lot owners. Individual lot owners are not responsible for insuring common property. Committee members should also consider office bearers liability to protect themselves personally.
Common property belongs to all lot owners collectively and is managed by the owners corporation. Lot property belongs to individual lot owners (the space within the lot boundaries). The strata plan defines the boundaries. Generally, the building shell, structural elements, and shared areas are common property, while internal spaces within lot boundaries belong to individual owners.
Public liability is a separate section of the commercial strata policy that covers injury and property damage claims in common areas. It works alongside the property section which covers physical damage to common property. Both are essential for comprehensive protection.
Some strata schemes have exclusive-use areas like balconies, courtyards, or parking spaces assigned to specific lots. These are still common property (owned by the owners corporation) but are for the exclusive use of a particular lot owner. The strata policy typically covers these areas, but maintenance obligations may fall on the lot owner depending on the by-laws.
The sum insured should reflect the full replacement cost of the building and all common property, including demolition, debris removal, professional fees, and compliance with current building codes. A qualified building valuer should assess this. Underinsurance is a serious risk. If the sum insured is insufficient, claims may be reduced proportionally under the average clause.
Commercial building representing strata common property insurance

Get the Right Cover for Your Common Property

We work with owners corporations to ensure common property is properly valued and comprehensively insured. No referral fees, no hidden costs.

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Expert Review: 20/02/2026

Verified by Tank Insurance Brokers

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