This article discusses what do lot owners need to insure in NSW strata schemes, clearly explaining the difference between fixtures covered by strata insurance and contents owners must insure themselves.
Question: What are lot owners required to insure inside their apartment? I thought strata building insurance covered the fixtures? My strata manager says it does not.
Your NSW strata insurance articles say that in NSW, the Strata Schemes Management Act requires building insurance that covers fixtures within an apartment. My strata manager has told me that our policy does not cover fixtures inside my lot and has sent me the PDS, which excludes personal contents and fixtures.
What am I personally responsible for insuring inside my apartment? Can you clarify what the strata building insurance should cover in NSW and what owners need to insure?
Answer: Owners should refer to the product disclosure statement for the full details of cover.
The basic principle is that if you pick up the unit and shake it, anything that falls out is the lot owner’s contents. This includes temporary flooring such as floating floors, carpet, blinds, and curtains, as well as appliances that are not permanently attached and paint and wallpaper (NSW only). These items need to be insured by contents or landlords’ insurance.
Other permanent fixtures, including but not limited to kitchen and bathroom cabinetry, are covered by strata insurance, subject to the policy terms, conditions and exclusions.
Owners should refer to the product disclosure statement for the full details of cover.
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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