How to Get Your Own Strata Insurance Quotes and Stop Paying Commission

Your committee can take the building's insurance back from the strata manager or broker. For most buildings, the best route is to appoint an independent broker for a fee agreed in dollars and ask for a net premium, which has the commission taken out. A net premium is 20% lower than the same policy with commission built in. You can also go straight to an underwriter, but few deal with committees, and you give up advice and claims help. In NSW, a strata manager cannot take a commission if the owners corporation gets the quotes and arranges the insurance and payment without the manager's help.

Who is who, in plain English

Strata insurance has more middle layers than car insurance, and the jargon hides who works for whom. Learn these four roles first.

"Underwriter" in this guide means the insurer or agency that prices your policy. For the wider market, read the strata insurance landscape.

How the commission works

Five terms explain almost every insurance invoice:

• Base premium. The underwriter's price before stamp duty, emergency services levy and GST.
• Gross base premium. A base premium with commission inside it.
• Net base premium. The same base premium with the commission taken out.
• Commission. Paid by the underwriter to the broker, or to the strata manager if there is no broker. John Trowbridge's report for NSW Fair Trading found it is almost always 20% of the gross base premium.
• Broker fee. A separate charge from the broker to the owners corporation, added on top.

The money usually travels like this. Your building pays a gross premium plus a broker fee. The underwriter pays 20% back to the broker. The broker then passes most or all of that to the strata manager and keeps the broker fee. The NSW Productivity and Equality Commission found that 82% of strata managers who answered its questionnaire earned insurance commission through brokers.

Here is what that looks like on a policy with a $30,000 gross base premium, using Trowbridge's mid-scale benchmarks:

That is $4,380 to $6,600 less before taxes. Stamp duty and the emergency services levy are charged on the premium, so a smaller premium reduces those too. The next section explains why you may not keep all of it.

An underwriting agency also earns its own commission from the insurer. CHU's guide puts that at 12.5% to 30% of base premium. Net terms do not touch it. They remove the commission paid to the intermediary.

How much you will really save

This is worth working out before you spend your weekends on it.

The Commission modelled the average NSW lot in 2025 at about $43 in insurance commission to the strata manager and $23 to the broker, or about $66 a year. Broker fees added about $94. A 30-lot building on those averages pays roughly $2,000 a year in commission. A 200-lot tower with a six-figure premium pays much more.

The saving also shrinks if the manager replaces the income. SCA (NSW) was open about this when it announced its voluntary phase-out, calling it a replacement of where revenue comes from, not a reduction. Trowbridge's benchmarks also assume a manager who does insurance work charges for it directly, at around 10% to 17% of net base premium. Going net can be close to cost-neutral if your manager simply adds that to the management fee.

The bigger wins come from visibility and competition. Two NSW schemes in the Commission's report show the range:

• A large inner-Sydney scheme hired an independent broker directly, cut out commission to the manager, and saw its premium fall by more than 30%.
• A Sydney scheme of over 100 apartments moved to a fee-for-service manager and kept the same insurer and broker. Its total insurance bill fell from $73,000 to $60,000.

Those are case studies chosen to show what is possible, so treat them as the good end of the range.

What a fair fee looks like

These are Trowbridge's indicative prices. They are guidance, and a building with defects or a complex placement can fairly sit outside them.

A low broker fee does not prove a cheap broker. The Commission's report warns that a broker approached directly might charge a minimal fee and keep the full commission. Always ask for both numbers.

Step 1: Find out what you pay now

Ask the manager in writing. The committee needs real dollar figures, and NSW managers must already give quotes that show commission amounts, broker fees and who ultimately receives them. In Queensland, the AGM papers must disclose benefits paid by an insurer, broker or intermediary to the manager under the Standard Module.

Item 4 matters more than it looks. Insurers accept letters of appointment signed by strata managers, so your building can change broker without the committee ever hearing about it. If the people named are connected to the manager, read this NSW Q&A on related representatives.

Item 7 matters too. Trowbridge found brokers sometimes treat the strata manager as their client when the owners corporation is the real one.

Step 2: Read the management agreement

Look for three things in the strata management agreement:

1. Whether insurance is delegated to the manager. If it is, the committee should change that in writing before acting. Delegating under s 49 of the NSW Act does not hand over the scheme's legal duties.
2. A fee that replaces commission. LookUpStrata reported a Victorian SCA contract where the owners corporation had to top the manager up to 15% of base premium, even if the manager had nothing to do with the policy. A fee in a contract is a different thing from a commission, so the NSW ban may not catch it. Get legal advice if you find one.
3. What the manager charges for claims and insurance admin. A Schedule B hourly rate can bring back what you took out of the premium.

If the clause is bad, negotiate it now or at renewal of the agreement. If you are worried about a wider pattern, audit the manager's commissions first.

Step 3: Get a committee decision on the record

The owners corporation is the policyholder. Its job, as CHU sets it out, includes choosing the insurer and policy, disclosing information to the insurer, and approving renewal at committee or general meetings.

One volunteer acting alone has no authority to bind the building, and CHU's quote slip makes you confirm you have that authority. So pass a motion first. If the committee's powers are unclear, or owners are divided, take it to a general meeting. See what a committee can decide.

Name two people. A second reader catches mistakes, and the work survives if one of them sells up.

Step 4: Check the sum insured

The sum insured is the most you can claim to rebuild. It drives the premium more than anything else, and it has to be right before you ask anyone for a price. Too low and a major claim falls short. Too high and you pay for cover you can't use.

NSW guidance says to get a new valuation every 2 to 5 years. Queensland's Standard Module requires one at least every 5 years, and Victoria requires it every five years for prescribed owners corporations.

If yours is more than three years old, order a new one now. Valuers need lead time, and every quote must use the same number or you can't compare them.

Step 5: Choose your route

Route A: Appoint your own fee-only broker

This is the right answer for most buildings. A broker can reach underwriters that won't talk to a committee, and they stand beside you at claim time. You pay a known fee, and they have no commission riding on the premium.

Ask three brokers for a written proposal. They should be independent of your manager. The answers matter more than the sales pitch.

Then check them:

• Search the licence on ASIC's registers.
• Ask whether they subscribe to the Insurance Brokers Code of Practice. The 2027 Code starts on 1 January 2027, with transitional arrangements for some obligations. It gives any client the right to ask what their broker is paid and get the answer in dollars. It also extends automatic disclosure to strata owners corporations, whether or not they count as retail clients.
• Ring the references and ask about a claim, not a renewal.

Get a straight answer on ownership. CHU's own guide notes that some brokers it deals with may be subsidiaries or associates of its parent company, Steadfast. That is lawful, but you should know about it.

Appoint one broker by signing a letter of appointment and sending it to the current underwriter. CHU's form says the appointment replaces any existing intermediary, so don't sign several. Brokers also tend to approach the same underwriters, which means two brokers rarely find you two markets.

Route B: Keep the manager but take out the commission

If the committee is stretched, this is a fair option. Tell the manager every quote must be net, and ask for a fee in dollars instead. CHU offers net-rated quoting, and most larger buildings are already insured this way.

NSW managers must give at least 3 quotes, or explain in writing why they can't. Ask to see the broker's quotes unedited, including the ones they did not recommend.

Watch for AGM motions consenting to commission. A broker giving personal advice to a retail client needs informed consent to charge it. If owners decline, the broker works on net terms for a fee. That motion is your chance to say no.

Route C: Go direct to an underwriter

Direct buying exists, but the choice is narrow. The NSW Government says you can get cover by contacting an insurance company or using a broker, and the Insurance Council has a find an insurer tool. In practice, these are the two we could confirm:

• CHU. Its documents page has a letter of appointment for self-managed schemes, a guide for direct clients, and quote slips "intended for owners purchasing insurance directly". We could only find downloadable slips for commercial strata, community associations and build to rent, so contact its sales team for residential strata.
• Suncorp. Its strata page takes quotes by phone on 13 11 55 and covers whole buildings only. Its fact sheet says up to ten units or a $5 million sum insured. Suncorp said in 2026 that it was moving its strata book into its commercial division, so confirm the limits.

QUS says its products can only be bought through a broker. We could not confirm direct access to Strata Community Insurance, Longitude or Flex. Ask them, and expect to be told they work through brokers.

Going direct has real costs, and you should weigh them honestly:

• You can't test the market. With one or two options, you have no way of knowing if the price is good.
• Nobody advises you. CHU's direct guide says it gives general advice only, without considering your needs. If the policy doesn't suit your building, that's on the committee.
• The disclosure sits with you. CHU's residential policy requires true, complete and accurate answers. It also requires you to report changes such as a building order or more commercial floor space, and it says it may reduce or refuse a claim if you don't.
• You run the claims. After a burst pipe, a volunteer is on the phone to the loss adjuster, the contractors and the affected owners.
• It may not be cheaper. Ask in writing whether the direct price excludes intermediary commission. CHU's guide says it can pay a third party that refers you up to 20%, so ask about that too.

Direct suits a duplex, a small townhouse group or a simple low-rise with no commercial lots, no defects and a tidy claims record. For a self-managed scheme of that size, it can be sensible. For a tower with lifts, a basement and a history of water claims, it's a false economy.

In NSW, remember the ban's wording. It applies where the owners corporation gets the quote and arranges the insurance and payment independently of the manager. If your manager pays invoices from the scheme's account, they could argue they helped. Net terms avoid that argument, and so does written confirmation from the manager that they will receive nothing.

Step 6: Build the quote pack

Underwriters price the file they receive. A thin file gets a cautious price. Assemble this once and keep it in the building's records.

CHU's commercial strata quote slip shows the kind of questions you'll face:

• Strata plan number, building name and address
• Current insurer, policy due date, excesses and total premium
• Claims in the last 3 years, with the claims history attached
• Whether a renewal was refused, or cover limited, in the last 3 years
• Any building or common property defects, with reports attached
• Number of units, floors and basements, year built and what's on the ground floor
• Occupancy, heritage listing and any commercial tenants
• Wall, roof and floor materials, cladding type and any EPS foam in the walls
• Monitored fire alarm, sprinklers, lifts and other facilities
• Sum insured, common area contents, office bearers liability and public liability
• A list of machinery for breakdown cover

Add what helps your case: the valuation, the current annual fire safety statement, the capital works plan, and proof of finished repairs. A new roof membrane with photos and an invoice can move a price.

Answer every question from documents, not memory. If you don't know, say so and find out. Disclose the ugly things, especially defects and past water claims, because that's the point where a future claim can come undone.

Step 7: Compare the quotes

Line every quote up on the same sum insured, and put them in one table. The Commission suggested a one-page sheet for owners that includes last year's costs, and it's a good habit.

Do the comparison over the whole policy. The cheapest quote often wins by trimming the areas where strata claims actually happen. Read the policy wordings for your biggest risk, side by side. Then ask the broker to explain, in writing, why they recommend one.

Step 8: Decide, bind and tell everyone

Put the comparison table and the recommendation to the committee, and minute the decision. Then:

1. Accept the quote in writing before the current policy expires. This step is called binding. Cover starts when the underwriter confirms it, so never assume.
2. Check the policy name matches the scheme exactly, for example "The Owners, Strata Plan 12345".
3. Pay on time. CHU's policy warns that cover may be cancelled if you don't pay by the due date.
4. Get the certificate of currency and put it where any committee member can find it.
5. Send owners the certificate and a short note on what changed, including the commission saved.
6. Tell the manager in writing who now holds the policy, and who owners should call about a claim.
7. Keep the quotes, table and minutes. NSW says to keep insurance records for up to seven years.

Your timeline

These timings are our recommendation, not a legal rule. They're early because an existing insurer generally issues renewal terms about 14 days before expiry, and that's far too late to start looking.

Never let the policy lapse while you are arguing with someone. If you run out of time, renew the existing policy on net terms and start earlier next year. A building with no cover is a far worse outcome than a commission you pay for one more year.

The rules in your state

Check these minimums against every quote. They apply whichever route you take.

Queensland committees can renew above their spending limit under s 172 of the Standard Module, as long as the decision isn't a restricted issue. Other Queensland modules differ. Tasmania's insurance regulations set $10 million for public risk. For South Australia, the ACT and the NT, see the state-by-state breakdown and confirm the current figure with your broker.

What the law says about commissions now

As at 2 November 2026, we found no Australian law that bans strata insurance commissions outright. What exists is narrower.

In NSW, the 3 February 2025 changes require itemised quotes and ban commission where the owners corporation arranges insurance independently of the manager. The Productivity and Equality Commission's March 2026 report recommended prohibiting strata managers from accepting commissions, restricting broker commissions and allowing a three-year transition. The government said it would consider the findings. That is a recommendation, not an Act.

SCA (NSW)'s phase-out is voluntary and applies to its members. In Victoria, Consumer Affairs considers it may be a breach of duty if a manager doesn't disclose acting as an insurance agent or receiving commissions.

Disclosure has limits, too. An industry compliance committee reviewed seven brokerages working with 1,088 representatives and found failures to check that remuneration disclosures reached owners corporations. So don't wait for a form to arrive. Ask for the dollar figure.

Six mistakes that cost committees money

• Comparing quotes on different sums insured. The cheaper quote may simply cover less.
• Hiring a low-fee broker who keeps the commission. Ask for net terms and the commission line.
• Removing commission, then missing the new fee. Check the manager's next contract and Schedule B charges.
• Leaving out defects or claims. A saving this year means nothing if the claim fails next year.
• Starting when the renewal notice lands. At 14 days, you have no time to test anything.
• Signing up a volunteer with no back-up. Name two people, and keep the file with the building.

Frequently asked questions

Can a committee member buy strata insurance personally?

No. The policy belongs to the owners corporation, so buy it in the scheme's name, with a committee or general meeting resolution behind you. A member can do the legwork and sign with authority.

Do we have to use a broker?

No. The NSW Government says cover can come from an insurance company or a broker. Most underwriters do seem to work through intermediaries, so a broker gives you a much wider market. A small, simple building has the most realistic chance of going without one.

Can the strata manager refuse to let us use our own broker?

The owners corporation is the client and the decision is theirs, but check the agreement first. Delegated functions and fee clauses can complicate things. If a manager insists you must use a related representative, that raises serious concerns under the SCA Code of Ethics. You can raise those with SCA or NSW Fair Trading.

Will removing commission lower our premium?

It should lower the base premium by the commission amount, 20% on Trowbridge's figures, and reduce some taxes with it. Your total saving is that amount, minus any broker fee and any new manager fee.

Can we change broker in the middle of a policy?

Yes. A signed letter of appointment moves the existing policy to the new broker from the date you choose. Switching underwriter is cleaner at renewal.

What happens if a claim is declined and we have no broker?

Complain to the underwriter first. If that fails, you can go to the Australian Financial Complaints Authority. Without a broker, the committee does all of that itself.

How UnitBuddy helps

UnitBuddy keeps the certificate of currency, premium history, valuation date, renewal date and commission disclosures in one place, owned by the building. The committee can see the renewal coming, and the next committee inherits the file.

See how UnitBuddy handles insurance and financials · Get started

Sources and further reading

• Benchmarking Strata Insurance Broker Pricing, John Trowbridge for NSW Fair Trading
• Review of the market impacts of prohibiting strata managers from accepting commissions, NSW Productivity and Equality Commission
• Managing strata finances and insurance, NSW Government
• Insurance: owners corporations, Consumer Affairs Victoria
• Understanding commission in strata insurance, CHU

Related reading

• Insurance commissions and disbursements: reading Schedules C and D
• The strata insurance landscape in Australia
• How to audit your strata manager for hidden commissions
• How to change strata manager

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Last updated: 2 November 2026. UnitBuddy publishes general information for Australian strata owners and committees. It is not insurance, financial product or legal advice, and it is not a recommendation of any insurer, agency, broker or policy. UnitBuddy does not hold an Australian Financial Services Licence. Company names, products and figures belong to their owners and sources, and can change without notice. Check the current product disclosure statement and take advice from a licensed strata insurance broker before making a decision.

What changed in strata this month? Read the strata news for your state, with every figure sourced.

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