Strata Insurance Requirements in Victoria: A Strata Manager’s Compliance Checklist

Blog post 4


Strata insurance is a cornerstone of risk management within the strata community in Victoria. With the complexities of the VIC Strata Act, navigating the ins and outs of insurance requirements can be daunting for strata managers. This guide aims to demystify these requirements, providing a clear compliance checklist to ensure your strata scheme is adequately protected and legally compliant.

The Critical Role of Insurance in Strata Management

Insurance in strata management is not just about fulfilling legal obligations; it’s about safeguarding the community’s assets, residents, and the strata manager’s peace of mind. Understanding and adhering to the VIC Strata Act’s insurance requirements is paramount in this endeavor.

Key Insurance Requirements Under the VIC Strata Act

  1. Building Insurance: Covers the cost of repairing or rebuilding in case of damage or destruction. It’s essential to ensure the policy reflects the total replacement value of the property, including all common areas.
  2. Public Liability Insurance: This is mandatory to protect against claims of personal injury or property damage occurring on common property. The VIC Strata Act requires a minimum coverage of $10 million, but assessing the scheme’s specific needs might necessitate higher coverage.
  3. Voluntary Workers Insurance: If your scheme relies on the goodwill of volunteers, it’s prudent to consider this insurance to cover them against injury while performing their duties.
  4. Fidelity Guarantee Insurance: While not mandatory, it’s highly recommended to protect against potential financial misappropriation by those handling the scheme’s funds.

Strata Manager’s Compliance Checklist

To ensure your strata scheme meets the VIC Strata Act’s insurance requirements, here’s a comprehensive checklist:

  • Review and Update Policies Annually: Insurance needs can evolve. Regularly review policies to ensure coverage is adequate and reflects the current replacement value of the property and its assets.
  • Maintain Accurate Records: Keep detailed records of all insurance policies, including coverage details, premium payments, and renewal dates. This ensures transparency and accessibility when needed.
  • Communicate with Lot Owners: Keep lot owners informed about the scheme’s insurance policies, including any changes in coverage or premiums. This fosters a culture of transparency and collective responsibility.
  • Engage Professional Valuation Services: Utilize professional valuation services to accurately determine the replacement value of the property, ensuring the building insurance coverage is sufficient and compliant.
  • Understand Policy Exclusions and Limitations: Familiarize yourself with what’s not covered under your policies to manage expectations and plan for additional coverages if necessary.


Navigating the insurance landscape as a strata manager in Victoria requires diligence, foresight, and a commitment to compliance. By adhering to the VIC Strata Act’s requirements and employing best practices in insurance management, you ensure the long-term protection and resilience of your strata community.

Ensuring a Protected Strata Community

Strata insurance is a critical aspect of strata management, encapsulating the essence of community protection and legal adherence. By following the outlined checklist, strata managers can confidently navigate the complexities of insurance requirements, ensuring their strata schemes are not just compliant but also well-protected against unforeseen risks.

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