What insurance must a Victorian owners corporation hold?

Insurance is the silent line item on every Victorian owners corporation budget — until a storm, fire, or slip on common property turns it into the only topic that matters. The Owners Corporations Act 2006 sets minimum cover, but good committees treat that as a floor, not a target.

Consumer Affairs Victoria’s insurance page explains reinstatement and replacement cover for buildings on common property, public liability for common property, and the special case of two-lot subdivisions. This article connects those rules to AGM disclosure and records — general information, not broker or legal advice.

Pair this with fees and the Victorian hub. Upload certificates to StrataBody so owners and conveyancers find them without emailing the treasurer.

Minimum cover CAV expects

Most owners corporations — except exempt two-lot schemes and some services-only arrangements — must hold reinstatement and replacement insurance for buildings on common property and public liability insurance covering common property.

Reinstatement policies should cover repair, rebuild, demolition, debris removal, and related professional fees. CAV’s definition of “building” includes structures, attached services, shared utilities, and some external works like driveways where the policy schedule captures them.

Public liability responds when people are injured or property is damaged in connection with common property. CAV specifies a minimum sum for many schemes — confirm the current dollar figure on the insurance page when you renew.

Two-lot and services-only exceptions

Two-lot subdivisions need not hold corporation policies for reinstatement or public liability on common property. CAV still urges owners to insure personally because liability sits with the owners of the common property.

Schemes without common property may pass unanimous resolutions for owners to arrange their own insurance — document those resolutions carefully in minutes and certificates.

Sum insured and professional valuations

When renewing, corporations must ensure sum insured exceeds building value. CAV recommends obtaining valuations and notes additional valuation duties for prescribed owners corporations — speak with your broker about what your tier requires without relying on outdated summaries.

We do not state valuation intervals here; read the live CAV insurance page and your policy schedule each renewal.

Choosing insurers and brokers

CAV recommends using insurers approved by APRA and obtaining multiple quotes. Mixed residential and retail schemes may need tailored liability schedules — do not assume a residential policy fits ground-floor shops.

Keep correspondence with brokers in the document library. When premiums jump, owners deserve the renewal invitation and scope notes, not just a one-line levy increase.

Claims and emergencies

After an event, photograph damage, mitigate further loss, and notify the insurer per policy conditions. Committees should nominate one contact so contractors and owners do not receive conflicting instructions.

Emergency works may precede insurer approval — record authorisations and invoices for the AGM insurance report CAV expects.

AGM and certificate disclosure

Insurance belongs in the AGM pack: insurer, sum insured, major exclusions, excess, and claims history if material. Records and certificate rules require accurate policy details when owners sell.

Link insurance renewal tasks to compliance calendars so renewal does not slip between volunteer holidays.

Relationship to maintenance plans

Capital works forecasts in maintenance plans should align with reinstatement sums — if the plan anticipates a full facade replacement, the sum insured should not assume cosmetic patch repairs only.

Software and launch pricing

StrataBody stores certificates, renewal dates, and broker reports beside meeting minutes — handy when a buyer’s conveyancer requests proof at short notice.

Launch offer for committees centralising records: $29/mo Essentials or $45/mo Pro, locked in for life for the first 50 paid schemes. Standard price: $49/$69. No GST. Plan details on pricing.

Office bearers and volunteer cover

Some corporations add office bearer or fidelity cover where volunteers handle large sums. CAV’s insurance page focuses on building and liability minimums; ask your broker whether committee roles need extra protection.

Short-term letting and guest damage

Melbourne CBD schemes see more short-stay bookings. Public liability responds to guest injuries in common areas; reinstatement responds to accidental fire or water damage. House rules and by-laws still matter — insurance is not a substitute for enforcement.

Underinsurance after renovations

When owners approve lot renovations affecting structure, remind them to notify the broker. Aggregate sum insured across the building can drift low if many owners alter bathrooms without updating the global schedule.

Comparing quotes fairly

CAV recommends at least three quotes. Compare excess, flood or storm sub-limits, and whether temporary accommodation is included. Cheapest premium is not cheapest claim experience.

Working with insurers after denial

If a claim is denied, request written reasons and review policy definitions with the broker. Disputes may intersect VCAT pathways when damage involves another lot’s negligence.

Strata title vs building replacement definitions

Policies distinguish common property from lot interiors. Owners renovating kitchens should understand what the corporation policy rebuilds after fire versus what lot insurance covers — CAV’s building definition helps committees explain boundaries at AGMs.

Shared services and neighbouring plans

Utilities crossing plans may need coordination with adjacent owners corporations. Note shared service items on certificates and insurance schedules to avoid gaps where each corporation assumes the other insures a pipe.

Catastrophe planning

Store insurer disaster hotlines, broker mobile numbers, and restoration contractors in StrataBody compliance notes. The first hour after storm damage sets the claim trajectory.

Premium funding through levies

When brokers recommend higher sums insured, update the fee budget narrative so owners understand premium drivers — especially after climate-related claims trends in Victoria.

Multiple policies on one site

Mixed towers may hold separate policies for podium, residential, and retail. Minutes should record which policy responds to which incident so committees do not notify the wrong insurer under pressure.

Evidence for owners and buyers

Upload full policy PDFs, schedules, and renewal invitations to your document library each year. Redacted summaries in AGM packs are helpful, but conveyancers often request primary documents during sales — having them indexed saves emergency searches.

Reviewing broker performance

Committees should ask brokers annually what changed in the market, not only what changed in premium. Document the review in minutes so future committees know why you stayed with or switched insurers.

Lot owner renovations and disclosure

Require owners to notify the corporation of structural works where rules oblige it, so brokers can assess changed risk. Silent renovations undermine reinstatement schedules for everyone.

AGM insurance motion template

Standing AGM wording helps: note insurer, policy period, sum insured, excess, material changes, and broker recommendation. Owners approve renewal authority and disclosure to certificates in one motion rather than debating ad hoc.

Common property vs lot contents after loss

Educate owners that reinstatement covers defined building elements while contents and betterments may need lot policies. Clear boundaries reduce arguments during stressful claims.

Storing policies in StrataBody

Tag each policy PDF with renewal date and broker contact. When an owner downloads a certificate bundle during sale, attach the current certificate of currency automatically instead of searching three inboxes. Set a compliance reminder two weeks before expiry so renewal does not depend on one volunteer’s calendar.