When a severe storm hits a strata complex, the damage can extend far beyond a leaking ceiling or wet carpet. For owners, tenants, body corporate managers and committees, the hours and days that follow are often filled with uncertainty, phone calls, insurance paperwork and urgent decisions. What many people don’t realise is that a single storm affecting just one apartment can result in three separate insurance claims, each with a different insurer, different responsibilities and different outcomes. Understanding how these claims work before disaster strikes can make the recovery process far less stressful.

Why Strata Is Different

Unlike a freestanding home, strata properties have shared ownership and shared responsibilities. The building itself is typically owned collectively through the body corporate, while individual owners are responsible for certain items within their lot. If the property is rented, the tenant also has their own possessions to consider.

When stormwater enters a building, it rarely stays in one place. Water may enter through the roof, travel through ceiling cavities, run down internal walls, damage floor coverings, affect neighbouring apartments and even impact common property. Because the damage crosses multiple areas of responsibility, it often involves more than one insurance policy.

The Body Corporate’s Role

The body corporate insurance policy generally covers the building and common property. This can include the roof, ceilings, structural walls, common hallways and other permanent building elements, depending on the legislation in your state and the specific policy wording.

For example, if high winds damage the roof and rainwater enters through that opening, the body corporate insurer would typically assess the damage to the building itself. Repairs to structural components and common property are generally managed under this policy.

Body corporate managers also play an important role in coordinating emergency response, communicating with owners and tenants, and arranging access for restoration contractors and insurance assessors.

The Owner’s Responsibility

Many lot owners are surprised to learn that the body corporate policy does not necessarily cover everything inside their apartment.

Owner-occupied residents may have contents insurance, while investment property owners often hold landlord insurance. These policies can cover items such as furniture, electronics, window furnishings, personal belongings, internal improvements that fall outside the strata policy and, in the case of landlords, loss of rental income if the property becomes uninhabitable.

Every insurance policy is different, so owners should understand exactly what is included in their cover before an emergency occurs.

The Tenant’s Cover

If the apartment is rented, the tenant’s belongings are generally not covered by either the body corporate policy or the landlord’s insurance.

Tenant contents insurance may provide cover for furniture, clothing, computers, televisions and other personal possessions damaged by an insured event. Some policies may also assist with temporary accommodation if the unit cannot be occupied while repairs are underway.

Unfortunately, many tenants only discover the importance of contents insurance after a loss has occurred.

One Unit, Three Claims

Imagine a storm causes roof damage to a residential building. Rainwater enters one apartment, soaking the ceiling, walls and flooring before damaging the tenant’s furniture and personal belongings.

In this situation, three separate insurance claims may be required.

The body corporate submits a claim for repairs to the roof, ceilings and any affected structural building components.

The lot owner submits a claim for damaged flooring, internal finishes, improvements or landlord-related losses, depending on their policy.

The tenant lodges a contents insurance claim for damaged furniture, electronics, clothing and other personal possessions.

Although the damage came from one weather event affecting one apartment, each insurer manages its own claim independently. This often means different assessors, different approval timeframes and separate repair processes.

Early Action Matters

One of the biggest misconceptions after storm damage is that repairs can wait until insurance decisions are made. In reality, immediate mitigation is one of the most important steps in reducing overall damage.

Professional water extraction, structural drying and moisture monitoring help minimise secondary damage such as mould growth, timber swelling and deterioration of building materials. Most insurers expect reasonable steps to be taken to prevent further loss, making early restoration beneficial for everyone involved.

Engaging qualified restoration professionals as soon as possible can also provide valuable documentation, moisture readings and reports that assist insurers throughout the claims process.

Preparation Reduces Stress

Storms cannot be prevented, but confusion afterwards can often be reduced with good preparation.

Body corporate committees should understand what their building insurance covers, owners should regularly review their own insurance policies, and tenants should consider whether they have adequate contents insurance. Keeping emergency contacts readily available and having an experienced restoration company ready to respond can also make a significant difference during the critical first 24 to 48 hours.

When everyone understands their responsibilities before disaster strikes, recovery becomes far more efficient. Clear communication between the body corporate, owners, tenants, insurers and restoration professionals helps minimise delays, reduces stress and allows residents to return to normal as quickly as possible.

For strata communities, one storm may create three insurance claims—but with the right knowledge and preparation, it doesn’t have to create unnecessary confusion.

Article Contributed by Brea Marshall, Director at PHJ Services.

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