This article discusses compensation for disruption caused by strata insurance repairs, explaining when owners in NSW may (and may not) be entitled to claim for loss of amenity or financial impact when insurance works on common property affect the use or sale of a unit.
Question: Can we claim compensation if insurance repair works impact our unit and prevent us from marketing it for sale?
We own a ground floor unit with a common property courtyard. Our apartment is currently on the market, but the owners corporation has made an insurance claim to rectify fire damage on a level above us. As part of those repairs, the insurer’s trades have set up scaffolding in the courtyard.
We’ve had to suspend our sales campaign. We cannot safely show the apartment to potential buyers, and there will be additional expenses to restart the sales campaign.
We are also significantly inconvenienced. The scaffolding blocks light into our apartment, our dog cannot safely use the courtyard, and the noise from the workers starts at 7.00 am most days. The situation is affecting our amenities and our finances.
Are we entitled to claim compensation from the owners corporation, the insurer or anyone else for the disruption, extra costs and impact on our sale?
Answer: usually, cover for financial loss only applies where the lot itself has sustained insured damage and is consequently unfit to be occupied
In most strata insurance policies, cover for financial loss—such as loss of rent, temporary accommodation, or other related benefits—only applies where the lot itself has sustained insured damage and is consequently unfit to be occupied.
Where a lot remains habitable, insurance generally does not respond, even if repair works to common property create inconvenience, reduce natural light, limit access, or impact a sales campaign.
In the situation described, the scaffolding and repair activities are occurring on common property, and the affected lot can still be occupied. Accordingly, while the circumstances are understandably frustrating, it is unlikely that compensation would be available through the strata insurance policy.
Owners who wish to explore whether compensation may be available through non-insurance avenues—such as strata law obligations or general legal principles—may wish to seek independent legal advice. As these matters fall outside the scope of insurance cover, we are unable to comment on potential legal remedies.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the March 2026 edition of The NSW Strata Magazine.
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Read next:
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- NAT: Q&A Liability for water damage between strata lots
- NSW: Owners Corporations, Common Property Repairs and Insurance – A Tricky Relationship
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