WA: Do owners have the right to review strata insurance before renewal?

This article discusses WA strata insurance renewal owner rights and how owners can access and review policy documents before or after renewal.

Question: Our strata insurance renewal is due well before the AGM, so approval occurs after the insurance policy is renewed. Do owners have a right to review the policy before the renewal is paid on their behalf?

Our strata insurance policy renewal date is well before the AGM scheduled date, and thus, the insurance renewal is approved later at the AGM. Owners never receive a Product Disclosure Statement (PDS) to review and/or approve. Our strata company has had several insurance providers over the past 8 years. Thus, the committee has accepted the new PDS and policy terms and conditions without owners’ consent. What right does an owner have under the legislation to review the policy and voice their approval or non-approval before the renewal is paid on their behalf?

What obligations does our strata insurance broker have to any owner? Do all owners have the right to access the broker’s support and assistance?

Answer: Strata insurance is arranged by the strata company, with the strata council making decisions on behalf of all lot owners.

There are a few key considerations here.

1. Strata Insurance Renewal and Owner Involvement

In Western Australia, strata insurance is arranged by the strata company, with the strata council making decisions on behalf of all lot owners. The Strata Titles Act 1985 (WA) grants the strata council the authority to arrange insurance unless the strata company has passed a resolution requiring broader owner approval before renewal.

If owners wish to have more control over insurance decisions, they may:

• Seek election to the strata council, which allows direct involvement in decision-making.
• Propose a motion at a general meeting requiring all owners to approve insurance renewals before payment.
• Review the by-laws to determine if any provisions exist regarding owner involvement in insurance approvals.

Regarding the Product Disclosure Statement (PDS), the insurer or broker provides this to the policyholder — the strata company — rather than to individual lot owners. However, under Section 107 of the Strata Titles Act 1985 (WA), lot owners are entitled to request a copy of the insurance policy and associated documents (including the PDS) from the strata company. Transparency can vary, but owners should be able to review these documents upon request.

2. Role of the Strata Insurance Broker and Access to Support

For insurance brokers, the service agreement is between the strata company and the broker. The strata company has some control over how the broker provides services. If the strata company allows a lot owner to access broker support, then the broker can assist.

Access to broker support depends on the service agreement between the broker and the strata company. Typically:

• Claims Assistance: Brokers assist with claims lodged under the strata policy. This support is facilitated through the strata manager, especially if they act as a policy distributor or authorised representative of the broker.
• Policy Queries: If a lot owner needs clarification about the policy, they should first request access through the strata council or strata manager. The broker may provide direct assistance, provided the strata company permits it.

When dealing with insurers, if you have a claim, insurers will typically recognise your insurable interest under the insurance contract and process the claim accordingly. However, it’s important to note that insurance contracts and broker agreements are separate, and as a result, they may be treated differently.

This post appears in the June 2025 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.