Question: What options do owners in a large strata scheme have if strata insurance is withdrawn due to poor maintenance in one building?
We live in a large strata scheme with multiple accommodation buildings. Most buildings are well maintained, one is not. The scheme’s strata insurance has been qualified for two years in a row because repairs and maintenance have not been carried out on the poorly maintained building.
If the insurer withdraws cover, what options are available to owners who live in the well maintained buildings?
Answer: If insurers refuse, the strata company needs to rectify the issues, making the property insurable so cover can be reinstated.
Under the Strata Titles Act 1985 (WA) (the Act), the strata company must insure all buildings. If the strata company cannot obtain insurance, they are technically in breach of the Act.
In practice, brokers will try to place cover with alternative insurers (often with higher premiums or exclusions). If insurers refuse entirely, the strata company or lot owners usually need to rectify the issues, making the property insurable so cover can be reinstated.
This post appears in the April 2026 edition of The WA Strata Magazine.
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.
