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What home insurance do I need for an apartment?

Mark Bristow avatar
Mark Bristow
- 3 min read
What home insurance do I need for an apartment?

If you’re one of the 10% of Australians who live in apartments, home insurance can help provide valuable peace of mind.  Many apartments are already covered by strata insurance, meaning you may not need a traditional home insurance policy to cover damage to the property. However, because strata insurance may not cover everything you want, it could be worth also looking into options for contents insurance or landlord insurance.

Do you need home insurance? 

Strictly speaking, you aren’t required to have insurance on your home in the same way that you’re required to have Compulsory Third Party (CTP) insurance on your car. That said, some mortgage providers won’t approve a mortgage application unless the borrower takes out a home insurance policy before settlement that covers the building.

If you’re buying a strata property, such as a unit or a townhouse, the body corporate and/or strata manager should already have an insurance policy in place to cover the whole strata complex. You and the other apartment owners will cover the cost of this strata insurance policy as part of your strata fees.

While this strata insurance should be enough to satisfy most mortgage lenders, not everything in your apartment will be covered. For example, strata insurance may only cover damage that affects the apartment building's structure itself, but not the fixtures and fittings inside your apartment.  

Do you need contents insurance? 

While home or strata insurance may cover your property’s structure against the risk of fire, flood, or other events, it won’t cover loss or damage to your furniture and possessions if they are damaged, lost or stolen. This is where contents insurance comes into play.

Contents insurance covers your possessions against damage or theft, so they can be repaired or replaced if an insured event occurs. Contents insurance can often be bundled with home insurance as a combined home and contents insurance policy, but it’s also available separately to help cover apartment owners, as well as renters.

Contents insurance can also cover legal liability, such as If someone accidentally injures themselves in your apartment. You may also choose to add accidental damage insurance to your policy to help cover unpredictable events such as the dog knocking over the TV or a visiting toddler spilling a sticky drink on the expensive couch.

You can also choose to add on portable contents insurance, which covers loss or damage to your home’s contents even when you take them outside of your property, such as engagement rings or mobile phones.

What if my apartment is an investment property? 

If you’re renting your apartment out to tenants, you may want to investigate options for landlord insurance. While strata insurance should still cover your property’s structure against many types of damage, landlord insurance may be able to provide additional cover that’s specific to landlords, such as damage caused by tenants, or loss of rental income.

As a landlord, you usually won’t need to look at contents insurance for your investment property, as that will be your tenant’s responsibility to arrange. That said, if your rental property is furnished, you could consider taking out contents insurance to cover the risk of damage to these possessions.

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Storm, fire & theftFloodUnderinsure protection

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AAI Limited T/AS AAMI
Contents Cover
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AHM Health Insurance
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Product database updated 04 Mar, 2024

This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.

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product data updated on

Product data updated on 4 Mar 2024