Body corporate insurance explained

Compulsory insurance

• Common property and body corporate assets, for full replacement value
• Public risk, covering injury, illness, death and property damage the body corporate could be liable for. The minimum is at least $10 million for a single event.
• Buildings, in most cases every building that contains a lot

Building format vs standard format plans

In a building format plan, the body corporate insures each building containing a lot for full replacement value. In a standard format plan, the body corporate insures buildings that share a common wall, and an owner insures a free-standing building on their lot. A body corporate can also set up a voluntary scheme to insure free-standing buildings, with participating owners sharing the premium.

Full replacement and reinstatement

The policy must cover damage and the costs of reinstating or replacing the buildings, such as professional fees and debris removal, and must return the property to new condition. Extra cover, such as flood cover, needs an ordinary resolution at a general meeting.

Valuations

An independent valuation must be done at least every 5 years. Owners share its cost in proportion to their share of the premium, through administrative fund contributions. Each year owners receive information about the policies and valuations, including the valuation date and the full replacement value.

What owners should insure themselves

For insurance purposes, “building” excludes items such as carpets, blinds, curtains and unplumbed appliances. Owners should arrange their own contents cover, and landlords should consider landlord insurance. Owners of free-standing buildings in standard format plans must insure their own building unless they are in a voluntary scheme.

Making a claim

If common property or an insured building is damaged, tell the body corporate manager as soon as possible, with photos and details. The manager lodges the claim with the insurer and coordinates repairs with the committee. For schemes we manage, call 07 4837 1788.

Frequently asked questions

How often does a body corporate need an insurance valuation?

An independent valuation must be done at least every 5 years.

Is flood cover compulsory for a body corporate?

Extra cover such as flood is decided by owners by ordinary resolution at a general meeting.

Sources

1. Compulsory insurance (Queensland Government)
2. Building insurance and valuation (Queensland Government)

Checked 22 October 2026. The law and official guidance change, so check the current source before relying on it. This page is general information about Queensland body corporate law, not legal advice. For advice about your situation, speak with a lawyer.