If the body corporate insures the building, do I still need contents insurance?

Yes, in practice. NSW says contents are not the owners corporation's responsibility, and Moneysmart says strata residents still need contents insurance for their belongings and legal liability. Tenants are in the same position. NSW recommends that tenants consider contents cover as well.

Does body corporate insurance cover my carpets and curtains?

Not reliably. NSW says carpets, curtains, furniture and electrical appliances may not be covered, even where common property caused the damage. Queensland excludes carpets, curtains and blinds from the building definition. Check the policy wording, and your own contents policy, before assuming either one responds.

Do I need building insurance for a townhouse in a strata or body corporate scheme?

It depends on the state and plan. In NSW and Victoria the scheme normally insures the building, with small-scheme exceptions. In Queensland, a free-standing townhouse under a standard format plan is the owner's to insure, while shared-wall and building format townhouses are the body corporate's. The scheme's insurance details will show which applies.

Who pays the excess if my lot is damaged?

It depends on the state and the facts. Queensland guidance puts the excess on the owner when a claim affects only their lot, and on the body corporate when several lots or common property are involved. Victoria lets an owners corporation levy the owner in some cases. NSW pages do not say, so ask the manager.

Do you need home insurance if you have a body corporate?

Usually yes, you need your own contents insurance, and in some townhouse schemes you need building insurance as well. A body corporate, called an owners corporation in NSW and Victoria, insures the scheme's building and common property, but Moneysmart says you still need cover for your belongings and for your legal liability. Check with the scheme before buying a policy. Rules below are as at October 2026.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

What the scheme's policy does and does not cover

The NSW Government says the contents of an owner's property are not the responsibility of the owners corporation or strata committee, and recommends that residents, whether owners or tenants, consider contents insurance. It adds that even where damage comes from a common property problem, personal items such as furniture, electrical appliances, curtains and carpets may not be covered by the owners corporation.

Moneysmart describes contents as items not permanently attached to the home, such as furniture, clothes, computers, fridges, televisions and tools. For strata properties it says home insurance is covered by the landlord or the strata corporation, but you still need contents insurance for your belongings and legal liability. Moneysmart defines legal liability cover as protection if you are found legally responsible for damage or injury to another person or their property.

The scheme's policy insures the building and common property. Your own policy is what covers your belongings, and your own legal liability.

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Where the gaps usually sit

Item	Usually covered by	What the official pages say
Building structure and common property	The scheme's policy	Required in NSW and Victoria, with two-lot exceptions. In Queensland it depends on the plan type
Furniture, appliances, clothes, electronics	Your contents policy	NSW says contents are not the owners corporation's responsibility
Carpets, curtains, blinds	Check both policies	NSW says they may not be covered by the owners corporation. Queensland excludes carpets, curtains and blinds from the building definition
Your legal liability	Your own policy	Moneysmart says you still need legal liability cover
Temporary accommodation	Optional extra on the scheme policy, or your own policy	NSW lists it as an optional extra on the scheme policy
Excess on a claim	Depends on the state and the claim	See below

Queensland's building definition also leaves out air conditioning units for a particular lot, removable tenant fixtures and appliances that are not wired or plumbed in. NSW pages do not publish a list of excluded fittings, so ask the manager for the policy wording.

When you may need building insurance too

This is where a townhouse differs from an apartment. The answer depends on the state and, in Queensland, on the type of plan.

Queensland, standard format plan. The body corporate must insure each building that shares a wall with another building. If your townhouse is free-standing and registered under a standard format plan, the Queensland Government says you are responsible for insuring it. The body corporate can set up a voluntary insurance scheme for these buildings, and you do not have to join.
Queensland, building format plan. The body corporate must insure each building that contains a lot. The Queensland Government says some townhouses are registered this way.
NSW. The owners corporation must hold building insurance. In a two-lot scheme with physically detached buildings, nothing on common property and a unanimous vote, the owners corporation may not need it, and Fair Trading says owners may choose individual building insurance instead.
Victoria. An owners corporation must insure buildings on the common property, except in two-lot subdivisions. Lot owners in an owners corporation with no common property can decide unanimously that each arranges their own insurance. Consumer Affairs Victoria also says individual owners can insure damage to their lot or their interest in common property, separately from or on top of the owners corporation's cover.

The Victorian page was last updated in May 2021, so recheck it before relying on it.

Checks to make before you rely on the scheme

Find the policy details. A NSW section 184 certificate lists each policy, with the insurer, sum insured, due date and last premium. In Queensland the body corporate must give owners insurance and valuation details at each annual general meeting. The certificate guide explains how to get these documents.
Check the valuation date. NSW Fair Trading says a scheme should have its building valued every two to five years. Queensland requires an independent valuation at least every five years. An old valuation can mean the sum insured is too low.
Check the excess. Queensland guidance says that if a claim affects only one lot, the owner should pay the excess unless the body corporate decides that is unreasonable. In Victoria, an owners corporation can levy an owner separately for an excess where the claim solely relates to their lot or was caused by culpable or wilful acts or negligence. NSW pages do not say who pays.
Tell the scheme about improvements. Queensland says owners must tell the body corporate about improvements that could affect the premium, as soon as possible after the work is done. It also says that without that notice you may have to pay repair costs the insurance does not cover.
Read the product disclosure statement. Moneysmart says the PDS has the detail of what a policy covers, and it lists exclusions to check.

Choosing your own policy

Moneysmart suggests comparing the same type and level of cover across policies. Points on its list include the premium, the excess, whether the policy covers injury to other people or damage to their property at your home, whether the sum insured still reflects inflation, and which events, items or damage types are excluded. Moneysmart also notes that most contents insurance does not include cover for accidental damage, and that valuables such as jewellery can have limits or exclusions.

Owners who rent their townhouse out should also read landlord insurance for a townhouse. For the owner-side view of a whole townhouse, see townhouse insurance.

Common questions

If the body corporate insures the building, do I still need contents insurance?: Yes, in practice. NSW says contents are not the owners corporation's responsibility, and Moneysmart says strata residents still need contents insurance for their belongings and legal liability. Tenants are in the same position. NSW recommends that tenants consider contents cover as well.
Does body corporate insurance cover my carpets and curtains?: Not reliably. NSW says carpets, curtains, furniture and electrical appliances may not be covered, even where common property caused the damage. Queensland excludes carpets, curtains and blinds from the building definition. Check the policy wording, and your own contents policy, before assuming either one responds.
Do I need building insurance for a townhouse in a strata or body corporate scheme?: It depends on the state and plan. In NSW and Victoria the scheme normally insures the building, with small-scheme exceptions. In Queensland, a free-standing townhouse under a standard format plan is the owner's to insure, while shared-wall and building format townhouses are the body corporate's. The scheme's insurance details will show which applies.
Who pays the excess if my lot is damaged?: It depends on the state and the facts. Queensland guidance puts the excess on the owner when a claim affects only their lot, and on the body corporate when several lots or common property are involved. Victoria lets an owners corporation levy the owner in some cases. NSW pages do not say, so ask the manager.

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Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.