Making an Insurance Claim: A Six-Step Guide for Strata Corporations

When Things Go Wrong, Your Insurance Is Tested

Insurance claims are the moment your corporation finds out what its policy is actually worth. The way the claim is handled — from the first phone call through to the final payment — makes the difference between a smooth recovery and a long, expensive mess. This article walks through the six steps every committee should follow.

Step 1: Report the Damage Promptly

Contact your manager or the corporation's secretary first, who will then notify the insurer. (Or, if the matter is urgent and there's no manager, contact the insurer directly.) The earlier the claim is filed, the sooner an adjuster can attend. Have the following information ready:

• Details of the loss — what happened, when, and what was affected. Make notes at the time, while everything is fresh.
• Policy holder name — the corporation's registered name
• Address of the group
• Police report number — for vandalism, break-ins, or malicious damage
• Policy number — found on the corporation's insurance renewal certificate
• Date and time of loss

For small claims, some insurers will authorise the corporation to undertake the work directly and forward the bills with the claim form afterwards. Check with the insurer first.

Step 2: Protect the Property From Further Damage

Every insurance policy requires the corporation to take reasonable steps to limit further loss. Failing to do so can give the insurer grounds to reduce or refuse the claim. Practical examples:

• Temporarily repair damaged roofs (tarpaulins, plastic sheeting)
• Cover broken windows with boards or plastic
• Move common-area furnishings exposed to weather to a safe, dry location
• Switch off power at the affected circuit if there's any risk of further damage
• Restrict access to unsafe areas

Step 3: Keep Accurate Records

Document everything from the moment the loss is discovered:

• A list of all cleaning and repair bills, including materials and rental equipment
• The value of each item lost, even items the corporation doesn't intend to replace
• Photographs and video of the damage before any repair work begins
• Copies of every invoice and receipt
• A brief diary of when each step was taken, by whom

Good records make the claim faster, and protect the corporation if anything is later disputed.

Step 4: Initiate Repair Work

Engage a reputable, well-established firm or individual to do the repairs. Get a written contract — not just a verbal agreement — and follow the principles in our guide to working with contractors: licence, ABN, insurance, and a written work order.

Some insurers maintain their own panel of preferred contractors who will attend at the insurer's direction. Ask your insurer first — using a panel contractor often takes pressure off the corporation and speeds up the process.

Warning: after major weather events or break-ins, predatory operators frequently appear in affected areas, offering cheap "cash repairs". Don't engage anyone who hasn't been vetted. The financial difference between a properly insured repair and an uninsured cash job is rarely worth the risk.

Step 5: Insurance Excesses — Who Pays?

Most building policies now include an excess on each claim. The amount typically ranges from $100 to over $1,000, depending on the policy and the type of claim.

The default position — unless the corporation has adopted a specific policy — is that the corporation pays the excess on every claim. That can quickly become unfair when the underlying cause was an owner's issue (a leaking shower in a unit causing water damage to the unit below, for example). The fix is to adopt a written excess allocation policy at a general meeting before any claim arises.

Sample Resolution: Insurance Excess Policy

Resolved that any insurance claim that relates to the property of an individual unit owner, the unit owner will pay the insurance excess. Any claim that relates to common property, the corporation will pay the excess. The unit owner has a right of written appeal to the Management Committee.

Once recorded in the meeting minutes, this policy gives the corporation a clear basis for charging the excess back to a unit owner where the loss was within their lot.

Step 6: Lodge the Claim Form

To recover the costs, lodge the formal claim. Most insurers have a standard claim form that needs to be completed and submitted along with:

• Repair invoices
• Police report number (for vandalism, theft, or break-in claims)
• Photographs of the damage
• Any other supporting evidence

A few insurers don't require a formal claim form for straightforward matters — a phone call and supporting paperwork is enough. Check with your insurer about their specific process before starting.

Set a Reminder to Follow Up

Insurance claims can drift if no one is actively chasing them. After lodging the claim, set a calendar reminder for two weeks to confirm the insurer has actioned it. If you haven't heard anything by then, ring and ask. Persistent, polite follow-up is the most reliable way to keep a claim moving.

For Background on the Policy Itself

This article assumes the corporation already has appropriate insurance in place. For more on what cover the corporation is required to hold, what counts as common property, and how often replacement valuations should be done, see our guide to body corporate insurance.

Get in Touch

If your group has had damage and you're not sure how to start the claim process, get in touch. We can guide you through the steps and help you communicate with your insurer.

Call us on 1300 792 255 or email hello@acaciacollective.com.au.