A townhouse’s walls don’t determine which insurance applies; its title and strata arrangements do. For a strata-titled townhouse, the body corporate is generally required by Australian law to hold residential strata insurance. Individual building insurance usually applies to a home outside a strata or body corporate scheme. So, when comparing strata insurance vs building insurance for a townhouse, start by checking how the property is titled.It’s easy to assume you need to insure the entire building yourself, or that strata cover takes care of everything. The distinction matters: strata insurance usually covers the building and shared areas, while your belongings and some owner-funded fixtures may need separate cover.This guide explains what each type of cover is designed to protect, how to identify which arrangement applies to your townhouse, and what to look for in the policy details. You’ll have a clearer basis for deciding what cover may be relevant to your property. Key Takeaways Compare the strata policy’s terms with your townhouse’s fixtures, fittings and any renovations to spot areas that may need separate cover. In the ACT, an eligible person can request free inspection of and a copy of the owners corporation’s current insurance policies, which must be provided within 14 days, according to ACT Parliamentary Counsel. For an individual building policy, consider whether changes such as an extension or loft conversion have altered the home’s rebuild needs. Use the decision guide to identify whether your townhouse is part of a strata scheme and what policy details matter for your situation. Table of Contents What’s the difference between strata insurance and building insurance? Strata insurance compared with individual building insurance MyGen Insurance Brokers: Business Insurance What’s the difference between strata insurance and building insurance? The distinction depends on your townhouse’s title and whether it belongs to a shared scheme. The strata insurance vs building insurance for townhouse decision starts with who insures the building and common property.Strata cover for common areas Residential strata insurance is arranged for a scheme and can cover its insured buildings, common property and shared areas, such as gardens, lifts, pools, walls, windows, ceilings and floors. It usually includes liability cover for injuries or property damage on common property. Strata-title owners share this building cover through the scheme rather than insuring the entire structure individually.Strata, company and Torrens titles have different ownership arrangements. A strata scheme insures shared property, while a standalone Torrens-title owner typically insures the building individually. For a company-title townhouse, the company documents explain how property and insurance are managed.Building cover for individual property Individual building insurance generally applies to a home outside a strata or body corporate scheme. It covers the … [Read more...] about Strata Insurance vs Building Insurance for Townhouses: Which Cover Applies