Strata Insurance: The Top Ten Tips on How to Make a Successful Water Damage Claim
Water damage is one of the most common issues faced by strata schemes across Australia. From burst pipes to roof leaks and overflowing gutters, water can cause significant disruption to owners and tenants and dealing with insurance claims can often feel daunting.
The good news? A well-prepared claim can make all the difference between a smooth process and frustrating delays. Whether you’re a strata committee member, building manager, or simply an interested owner, here are our top tips for making a successful water damage claim on your strata insurance policy.
1. Information is Key
When it comes to strata insurance claims, the more information you can provide, the better. Insurers rely on clear and complete details to assess the situation and determine coverage. Missing or incomplete information is one of the most common reasons claims are delayed or rejected.
Before you contact the insurer or your strata manager, gather all relevant information about the incident. Being organised from the start sets the tone for a smoother process.
2. Know Your Strata Scheme Details
Every strata scheme has a number that uniquely identifies it in your state. For example it’s a Strata Plan number in NSW (eg SP 1235657), in the NT is Unit Plan Number (eg UP 99999) This is essential for the insurer to pull up the correct policy. You’ll also need the insured address and details of any units or common property areas affected.
Have these details ready when lodging the claim so there’s no confusion about which property or policy applies.
3. Record the Date of Loss
Insurers need to know the Date of Loss (DOL) the date the damage or incident occurred or when you first discovered it. This helps them identify which insurance policy was in effect at the time and ensures the claim is lodged under the correct period of cover.
4. Provide a Clear Description of the Incident
Write a brief, factual explanation of what happened. Include:
What occurred (e.g., “a burst pipe in the ceiling cavity”)
Where it occurred (e.g., “above Unit 6’s living room”)
What was damaged (e.g., “ceiling plasterboard and flooring”).
Avoid speculation about liability or the cause, stick to the facts only.
5. Prepare Supporting Documentation
Insurers will often require several supporting documents. These include:
Cause of Damage Report: A professional report (from a plumber, roofer, or other specialist) that explains what caused the water damage. This helps the insurer determine if the damage is covered. A good contractor will do their best to ensure their report is comprehensive.
Invoices or Quotes for Repairs: Provide an invoice or quote for rectifying the cause of damage (e.g., repairing the pipe or roof).
Quotes or Invoices for Resultant Damage: Include separate quotes or invoices for fixing the water damage itself (e.g., plastering, painting, flooring). Alternatively, you can request that the insurer send out one of their approved contactors from their network.
6. Supply Financial Details – GST, ABN and EFT Information
When lodging a claim, it’s vital to provide the strata scheme’s GST status, Australian Business Number (ABN), and EFT (banking) details. These are not just administrative details they directly affect how the insurer calculates and processes any payouts.
If your strata scheme is registered for GST, the insurer needs to know so they can apply the correct tax treatment to your claim.
For example:
If the scheme is registered for GST, any insurance settlement will generally be made on a GST-exclusive basis, as the scheme may be entitled to claim back the GST as an input tax credit from the ATO (Australian Tax Office).
If the scheme is not registered for GST, the insurer will need to include GST in the settlement amount, as you won’t be able to claim it back.
Providing the wrong GST status can result in underpayment, overpayment, or delays while the insurer requests clarification.
Tip: Before submitting a claim, confirm with your strata manager or accountant whether the scheme is registered for GST. Also have the ABN and the scheme’s current bank account details ready. This simple step helps avoid frustrating back-and-forth and ensures any settlement funds are deposited promptly once approved.
7. Provide Contact Information
Include the details of an onsite contact person who can assist with inspections and access for tradespeople. Their phone number and email address should be provided upfront, along with contact details for affected unit owners or tenants where necessary.
Having a single point of contact can speed up communication between the insurer, loss adjusters, and the strata scheme.
8. Include Visual Evidence
Where possible, take photos or video footage of the damage before any cleanup or repairs begin. If your building has CCTV footage that captured the incident (e.g., a burst pipe in a common area), include that too. These visual records help insurers understand the extent of the damage and can strengthen your claim.
Final Word
Navigating a strata insurance claim doesn’t have to be overwhelming. By preparing key information and documents early, you can help avoid unnecessary delays and ensure your scheme is back to normal as soon as possible.
Remember, your strata manager or broker can assist you with the process and liaise with the insurer on your behalf. With these tips in mind, you’ll be well on your way to making a successful water damage claim.
Handy checklist for a claim
Information is key:
Strata Scheme Number
Have your Strata Plan Number ready to identify your property
Date of Loss (DOL)
Record the date the damage occurred
Insured Address & Units Affected
List all impacted areas
Description of Incident
Briefly explain what happened, where, and what’s damaged
Cause of Damage Report
Obtain a professional report (e.g., plumber, roofer), it speeds the process
Quotes/Invoices
. What are the costs?
Repairing the cause of damage (stopping further damage, e.g. fixing the pipe)
Fixing the resulting damage (what else needs fixing e.g. the flooring)
Scheme’s GST, ABN & EFT Details
For claim payments and ATO compliance
Onsite Contact Information
Name, phone, and email of a key contact
Photos or CCTV Footage
Gather any visual evidence to support your claim
Claim number
Once your claim is lodged then keep that handy for reference
Julia Apostolidis
Julia is the National Claims Manager at Collective Insurance Brokers. Throughout her career, she has been helping clients through the claims process for over 20 years. She has handled everything from simple burst pipes to complex, multi-million-dollar claims, always with a focus on making things as smooth and stress-free as possible for her clients. Julia’s dedication to putting people first has earned her a reputation for achieving great outcomes and building lasting trust.
https://www.collectiveib.com.au
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction
