In South Australia a strata corporation must insure all buildings on the site to their replacement value, hold public liability cover of at least $10 million, and in most cases hold fidelity guarantee insurance. Community title schemes have their own, slightly different rules.
South Australia runs two systems side by side. A scheme created under the Strata Titles Act 1988 is a strata scheme, with a strata corporation, units and unit holders. A scheme created under the Community Titles Act 1996 is a community scheme, with a community corporation and lots. The insurance duties differ, so the first step is knowing which one you are in. Your plan or a title search says.
What insurance must a strata corporation have in South Australia?
"A strata corporation must keep all buildings and building improvements on the site insured to their replacement value."
Strata Titles Act 1988 (SA), section 30(1)
Replacement value means "complete replacement including the cost of any necessary preliminary demolition work, any necessary surveying, architectural or engineering work". The risks to be covered are the standard events for home building insurance, other than subsidence.
It must also hold:
- Public liability. The Act says at least $5 million and the regulations lift it: "insurance cover for liability in tort must be for at least $10 000 000" (Strata Titles Regulations 2018, regulation 14).
- Fidelity guarantee insurance, against theft or fraud involving the corporation's money.
What is different for a community corporation?
A community corporation insures "the buildings and other improvements (if any) on the common property" and, in a community strata scheme, "the building or buildings divided by the strata plan" (Community Titles Act 1996, section 103). The cover has to be for the full cost of replacement with new materials.
| Scheme | Who insures the buildings | Public liability |
|---|---|---|
| Strata scheme (Strata Titles Act) | The strata corporation, for all buildings on the site | At least $10 million |
| Community strata scheme | The community corporation, for the building divided by the plan and anything on common property | At least $10 million for bodily injury |
| Community scheme that is not a strata scheme | The corporation for common property only. Owners insure the buildings on their own lots. | At least $10 million for bodily injury |
What is fidelity guarantee insurance, and how much is needed?
It covers the corporation if money is stolen or misappropriated, for example by an office holder or a manager. In New South Wales it is optional. South Australia makes it compulsory, and the amount must be at least:
"the maximum total balance of the corporation's bank accounts at any time in the preceding 3 years; or $50 000, whichever is higher"
Strata Titles Regulations 2018 (SA), regulation 14(2), and Community Titles Regulations 2026, regulation 21
Strata corporations with no administrative or sinking funds are exempt. So are community corporations whose common property is insured for $100,000 or less, and two-lot community corporations with no funds.
Can unit holders in a small strata group insure their own units?
Not in a strata scheme. The Strata Titles Act has no exemption for small groups, and the Legal Services Commission of South Australia puts it plainly:
"Under no circumstances can a corporation permit each unit holder to take out their own individual building insurance instead of the corporation."
Legal Services Commission of South Australia, Law Handbook
The Act makes no exception for a group of two. New South Wales, Queensland, Victoria and Western Australia each allow owners to insure separately in some cases, which our duplex guide compares.
Who pays the excess on a claim in South Australia?
For a community corporation the Act answers it: "In the event of a claim, any excess or shortfall resulting from under insurance must be met by the corporation" (Community Titles Act 1996, section 103(3)). The Strata Titles Act is silent, so in a strata scheme it is a matter for the corporation.
That wording also carries a warning. If the building is under-insured, the shortfall falls on the corporation, which means on the owners. Neither Act sets a valuation interval, so keeping the sum insured current is up to the corporation. Our guide to how much strata insurance is shows how the sum insured drives the premium.
Must a manager disclose insurance commission in South Australia?
Yes. A manager acting under a delegation who has "a direct or indirect pecuniary interest" in a matter must disclose it in writing before acting. The Strata Titles Act gives insurance-style commission as its own example: if the manager "would receive a commission from a person for placing business of the strata corporation with that person, it would be an offence to fail to disclose that fact". There is no ban or cap.
Our news explainer on strata insurance commissions has the national picture, and our guide to strata insurance brokers lists what to ask.
The quote shows the base premium, each charge and our commission in dollars.
Get a quoteSources
- Strata Titles Act 1988 (SA), sections 27D, 30, 31: legislation.sa.gov.au
- Strata Titles Regulations 2018 (SA), regulation 14: legislation.sa.gov.au
- Community Titles Act 1996 (SA), sections 78D, 103, 104: legislation.sa.gov.au
- Community Titles Regulations 2026 (SA), regulation 21: legislation.sa.gov.au
- Legal Services Commission of South Australia, Law Handbook, strata and community titles insurance: lawhandbook.sa.gov.au
General information only, not legal advice. Read from the Acts and regulations as in force in September 2026.
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