Body Corporate Insurance in Queensland: What's Covered and What's Not

Two Types of Insurance in a Body Corporate

When you own a lot in a Queensland body corporate scheme, two separate layers of insurance apply:

Body corporate building insurance — held by the body corporate, covering the building structure and common property
Your own insurance — your responsibility, covering your contents and personal liability within your lot

Understanding what each covers — and does not cover — is essential for every lot owner.

What Body Corporate Insurance Covers

The body corporate is legally required under the BCCM Act to hold building insurance covering the full replacement value of the scheme's insurable assets.

This typically covers:

The building structure — external walls, roof, floor slabs, foundations
Common property — stairwells, corridors, car park structures, pool and gym fitout
Fixed building infrastructure — lifts, air conditioning plant, fire safety systems
Common area finishes — carpets, paint, and fixtures in shared areas
Insured events — fire, storm, flood, impact, water damage, malicious damage

What Body Corporate Insurance Does Not Cover

Your contents — furniture, appliances, clothing, personal items
Your lot improvements — renovations above the original building standard (new kitchen, bathroom tiles, carpet)
Public liability within your lot — if someone is injured inside your private lot, the body corporate's policy does not cover you
Loss of rent — unless specifically added to the policy
Your personal items in common areas — a bicycle in the common area storage or a vehicle in the car park is not covered by the body corporate's building policy

What You Need to Arrange Yourself

As a lot owner, you should hold:

Contents insurance: Covers your furniture, appliances, and personal belongings, plus any improvements to your lot above the original standard.

Personal liability insurance: Covers claims for injury or property damage occurring within your private lot.

Landlord insurance (if letting): Covers loss of rent, tenant damage, and other investment property-specific risks.

How to Make a Claim

For damage to common property or the building structure — contact the body corporate manager. They will lodge the claim with the body corporate's insurer.

For damage to your lot contents or personal items — contact your own insurer directly.

For building damage that might be covered by either policy (for example, internal damage from a roof leak) — notify both the body corporate manager and your own insurer, and let them determine which policy responds.

Check the Policy Each Year

At the AGM, the committee tables the current insurance policy details. Check:

Is the insured value current and adequate?
When was the last insurance valuation conducted?
What is the excess on various types of claim?
Does the policy include any exclusions relevant to your building?

Insurance is one of the most significant expenses in the administrative fund budget — and one of the most important protections the scheme has.

This article is general information only and does not constitute legal advice. For advice about your specific insurance situation, consult an insurance broker or the Office of the Commissioner for Body Corporate and Community Management.