Commercial strata insurance: shops, offices and mixed-use buildings

Commercial strata insurance is strata insurance for a building where some or all of the lots are used for business: shops under apartments, a strata office building, a row of industrial units. The cover has the same sections as residential strata, but the price, the taxes and the questions change with what the businesses do.

Insurers do not treat "commercial" as one thing. A solicitor's office in a mixed-use building is a different risk from a restaurant with a deep fryer, and the policy is rated on the mix. This guide explains how that works, using the Strata Community Insurance policy (SCI-PPW-04/2026), which is one wording for residential and commercial strata.

What is a commercial or mixed-use strata scheme?

• Mixed use. Mostly residential, with shops, cafes or offices on the ground floor.
• Commercial strata. Every lot is a business: offices, medical suites, retail.
• Industrial strata. Warehouses, workshops and storage units on one plan.

In each case the owners corporation insures the building and common property, and each business insures its own stock, fit-out, equipment and liability.

How is a mixed-use building rated?

On how much of it is commercial. The policy says so directly:

"We will classify Your risk based on characteristics such as the percentage of floorspace which is used for residential and commercial purposes. This classification will determine the premium, taxes, duties and levies applicable"

SCI-PPW-04/2026, page 14

That is why an insurer asks for each commercial occupancy and the share of floor area it takes up. The classification also affects the government charges, which is one reason two buildings with the same sum insured can have different totals.

What does a restaurant or cafe in the building change?

Cooking is the occupancy insurers look at hardest, because of fire in exhaust ducts. This policy makes the owners corporation responsible for seeing that any lot doing commercial cooking has its filters, hoods, flues and ducting professionally cleaned, has suitable fire extinguishers or blankets at the frying area, and keeps its fire protection equipment maintained, with written records kept (pages 18 to 19).

"If You do not comply with any of these conditions, We may reduce or refuse Your claim to the extent We are prejudiced and/or cancel Your Policy."

General condition 6, Commercial Cooking, SCI-PPW-04/2026, page 19

The obligation sits with the owners corporation even though the kitchen belongs to a tenant, so committees in mixed-use buildings commonly ask their food tenants for cleaning certificates.

What does the owners corporation's policy not cover for a business?

The building policy covers the building. It does not cover a business owner's stock, equipment, fit-out they are responsible for, loss of trade, or their own public liability to customers. Those belong on the business's own policy. Quick Strata is a Gary brand, and Gary quotes business insurance online.

What the strata policy does include is loss of rent for a lot that is leased, when insured damage makes it unfit to occupy (pages 6 to 7). For the full list of sections, see what strata insurance covers.

Can a commercial or mixed-use building be quoted online here?

Partly. The online form takes a building with commercial lots, but the quote is not instant: a scheme with any commercial lot goes to a broker, because the insurer needs each occupancy and its floor area. Wholly residential buildings are usually priced online in a minute or two.

What a strata insurance broker will ask for:

• each commercial lot's occupancy (what the business does) and floor area
• whether any lot does commercial cooking, and the cleaning records for it
• the residential and commercial split of the building
• the usual building details: construction, year built, facilities, sum insured, claims history

General information only. This guide summarises one insurer's policy (edition 04/2026) and leaves out terms, conditions and limits that may matter to your scheme.