Townhouse and unit block insurance: who insures what

Townhouses, villas and blocks of units on a strata plan are insured under one strata policy for the whole site, bought by the owners corporation. A townhouse on its own Torrens title is different: its owner insures it with ordinary home insurance.

So the first question for any townhouse or unit is what kind of title it sits on. This guide covers how to tell, what the strata policy insures for low-rise sites and for apartment blocks, and what an insurer asks about each.

Is my townhouse strata or Torrens title?

The contract of sale, a title search or a levy notice answers it. If the owners pay levies to an owners corporation or body corporate, the site is on a strata or community plan and the building insurance is the corporation's job. If each townhouse owns its own land outright with no shared property, there is no owners corporation and each owner arranges home insurance.

Some townhouse estates sit on community title, where owners own their lot and building and share only roads and gardens. Who insures the buildings there depends on the state and the scheme: Western Australia's survey-strata schemes and South Australia's community title schemes leave it to each owner, and Victoria lets owners of single dwellings resolve to insure their own. A two-home site is its own case, covered in our duplex guide.

What does strata insurance cover for townhouses and villas?

For a row of townhouses or a group of villas, most of what gets damaged in a storm is outside the homes: fences, the shared driveway, retaining walls, carports. In the policy that prices quotes on this site (Strata Community Insurance, SCI-PPW-04/2026) the building includes:

• outbuildings, which takes in carports, garages and sheds
• fencing, gates, paths and roadways, retaining walls and awnings
• tennis courts, in-ground swimming pools and spas
• underground and overhead services
• solar panels installed for the scheme's use, and electric vehicle chargers fixed to the building

That list is from the definition of Building on pages 21 and 22. Storm damage to gates and fences is named as covered (page 25). Damage to retaining walls from storm or rainwater is excluded (page 31), which matters on a sloping site.

What does it cover for a block of units?

An apartment block adds shared plant and shared spaces, and the policy has sections for both:

• Lifts, pumps and air conditioning. Machinery breakdown is its own section (Section 7, page 44), covering breakdown of electrical, electronic and mechanical plant. It is separate from damage by fire or storm, which sits under the building section.
• Car parks. The liability section extends to property damage arising from vehicles in the owners corporation's control in a car park it owns (page 34).
• Pools and gyms. Liability arising from hiring out or running recreational facilities is included (pages 34 to 35). The policy requires reasonable steps to keep a pool compliant with the Australian pool safety standard, AS 1926 (page 18).
• Electric vehicle charging. Where chargers are installed, the policy expects by-laws for them, installation by licensed professionals and written records (page 19).
• Common area contents. Hallway carpet, lobby furniture, common laundry machines and garden equipment are insured as common area contents (page 22).

Our guide to what strata insurance covers goes through every section, including what is excluded. Bigger buildings with an active committee often look at office bearers liability as well.

What is not covered in a townhouse or unit?

The same things as in any strata building: the owner's or tenant's contents, and in this policy the carpets and floating floors inside a lot (pages 22 to 23). An owner who has renovated should know that fixtures and improvements added to a lot are covered only up to a limit across the whole scheme, 10% of the sum insured in this policy (page 8).

What do insurers ask about a townhouse site or unit block?

• the address and the strata plan number
• how many lots, how many separate buildings, and how many storeys
• whether the homes are units, townhouses, villas or a mix
• the year built, and the wall, roof and floor construction
• shared facilities: lifts, pools, gyms, tennis courts, playgrounds, car stackers, electric vehicle chargers
• fire protection and security
• whether any lots are commercial or let as holiday accommodation
• the current insurer and any claims in the last five years
• the building sum insured, usually from a valuation

How much does it cost?

A six-unit brick block in Sydney's inner west, built in 2005 and insured for $3.5 million, was quoted $5,222.96 for the year on 10 November 2026, which is $870 a lot. Our guide to what strata insurance costs has that quote beside two smaller buildings, with every charge itemised.

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.