At Flex Insurance, we try to make strata insurance as simple as possible. Here's a quick guide, glossary of terms commonly used in the strata industry in Australia, along with some additional resources for you to learn more. We will continue to add more terms here, but if you have any questions or need help, please reach out to our team.
Annual General Meeting (AGM): A meeting held once a year where all owners in a strata scheme come together to discuss important matters, review financial statements, elect the executive committee, and make decisions affecting the property. An extraordinary general meeting or special general meeting is different from an annual general meeting. A committee holds these meetings to discuss things affecting all owners and residents.
By-Laws: Rules and regulations that govern the conduct and use of strata properties. By-laws can cover various aspects, such as pet ownership, noise restrictions, and renovation guidelines.
Certificate of Currency: or (CoC) acts as proof of a current insurance policy. It includes key details of your policy such as property address, type of policy and expiry of the policy.
Common Property: Areas within a strata scheme that are jointly owned by all the lot owners. Common property can include land, gardens, hallways, lobbies, elevators, driveways, and other shared facilities.
Facilities Manager or Building Manager: A facilities manager is sometimes referred to as a building manager and can be appointed by the developer, strata manager, owners’ corporation, or body corporate. They are responsible for coordinating and overseeing the maintenance and the safety of the building and common property.
Lot: A lot is a part of land, buildings, and airspace on a plan of subdivision. It is separately owned and sold, e.g. an apartment or townhouse. Lots are parts of a building that are not common property, such as car spaces, storage bays, and storerooms.
Office bearers: Office bearers are official roles on the strata committee. Office bearers represent the owners corporation in decision making. Office bearers can include chairperson, treasurer or secretary.
Owners Corporation: Also known as a body corporate, the owners’ corporation is responsible for managing and maintaining the common property in a strata scheme. It consists of all the individual lot owners. Here are the different terms for Owners Corporation by state:
| State/Territory | Term |
| QLD | Body Corporate |
| NSW | Owners Corporation |
| VIC | Owners Corporation |
| SA | Strata Corporation |
| WA | Strata Company |
| NT | Body Corporate |
| TAS | Body Corporate |
Sinking Fund: Also called a Capital Works Fund is a separate fund established by the owners corporation to accumulate money for future capital expenses, such as repairs, replacements, and upgrades to common property. It helps ensure funds are available when needed. Here are the different terms for Sinking Fund by state:
| State/Territory | Term |
| QLD | Sinking Fund |
| NSW | Capital Works Fund |
| VIC | Maintenance Fund |
| SA | Sinking Fund |
| WA | Reserve Fund |
| NT | Sinking Fund |
| TAS | Maintenance Fund |
Strata Insurance: Residential or commercial strata insurance is compulsory in most states and territories in Australia. For buildings with shared common property strata insurance covers the building itself, corridors, roofing, garden and driveways, against loss or damage.
Strata Title: A form of property ownership where individuals own a specific unit or lot within a larger property complex, such as an apartment building or townhouse. Each owner also shares ownership of common areas and facilities. Here are the different terms for Strata Title by state:
| State/Territory | Term |
| QLD | Community Titles Scheme (CTS) |
| NSW | Strata Plan (SP) |
| Vic | Owners Corporation (OC) |
| SA | Strata Plan (SP) |
| WA | Strata Plan (SP) |
| NT | Strata Corporation (S/Corp) |
| Tasmania | Strata Corporation (S/Corp) |
Strata Committee: Also known as the executive committee or committee of management, the strata committee is elected by the owners at the AGM. They represent the owners and make decisions on their behalf regarding the day-to-day management of the property. Here are the different terms for Strata Committee by state:
| State/Territory | Term |
| QLD | Committee |
| NSW | Executive Committee |
| VIC | Committee |
| SA | Managing Committee |
| WA | Council |
| NT | Committee |
| TAS | Committee of Management |
| ACT | Executive Committee |
Strata Manager: A professional or company hired by the owners’ corporation to assist in the administrative, financial, and maintenance aspects of running a strata scheme. They act as a liaison between the owners and the executive committee.
Special Levy: An additional fee imposed on owners to cover unexpected or large expenses that go beyond the regular levies collected for maintenance and administration. Special levies require approval from the owners’ corporation.
Strata Levy: The regular fees paid by each owner to cover the day-to-day expenses of managing and maintaining the strata scheme. Levies are calculated based on unit entitlements and cover costs like insurance, utilities, common area maintenance, and administration.
NSW additional common terms used
VIC additional common terms used
WA additional common terms used
SA and NT additional common terms used
If you would like a quote for your residential strata insurance, click here to apply online, or contact Flex Insurance on 1300 001 293 (9am-7pm AEST)
Please note that the links provided are for informational purposes, and you may need to refer to more specific information by state or territory legislation and regulations for accurate and up-to-date information in your area.