Your guide to townhouse insurance 

When you buy or live in a townhouse, insurance can feel confusing – mainly because responsibility is often split between you and a body corporate (also called an owners’ corporation). Below, we explain how townhouse insurance works, what’s typically covered under strata, and where you may need your own home insurance.

What is a townhouse?

A townhouse is typically a multi-level dwelling that shares one or more walls with neighbouring properties. Unlike apartments, townhouses usually have their own entrances and may include small outdoor areas like courtyards.

Insurance for townhouses can differ from houses or apartments because parts of the building or land may be shared or collectively owned.

Do townhouses have strata?

In many cases, yes. Townhouses are commonly part of a strata or community title scheme. This means a body corporate (owners’ corporation) manages shared areas and certain responsibilities, including some types of insurance.

In Australia, strata insurance is usually arranged by the body corporate and generally covers the building and common property areas. 

What does body corporate insurance cover?

If your townhouse is part of a strata scheme, the body corporate will generally hold a strata insurance policy. GIO Strata Insurance typically covers:

• the building structure,
• shared areas such as driveways, stairwells, garages and common facilities, and 
• legal liability for incidents that occur in common areas.

However, strata insurance usually does not cover:

• your contents or personal belongings,
• internal walls, fixtures and fittings (in some cases),
• upgrades or renovations made inside your townhouse, and
• temporary accommodation or personal loss scenarios related to your own occupancy.

That’s where additional cover like contents or building insurance can come in.

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Building insurance for a strata townhouse

Depending on your strata plan and what the body corporate policy includes, you may still need your own building insurance to protect parts of your property, particularly internal areas.

In cases where your townhouse isn’t under a strata scheme, you’ll generally need a standalone building insurance policy to cover the entire structure.

GIO Townhouse Insurance

With GIO, you can choose cover that aligns with how your townhouse is set up.

GIO Home Building Insurance can cover your standalone unit against insured events like fire, storm, flood or theft. You can tailor your level of cover to suit your lifestyle and property, and may be eligible for multi-policy discounts if you bundle policies.

At GIO, we understand that no two townhouses are the same – which is why flexibility matters. 

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What’s the difference between a house and a townhouse?

The main difference between a house and a townhouse lies in ownership and shared responsibility. With a house, you generally own both the land and building outright and arrange your own building insurance.

With a townhouse, walls, land and common areas are shared with others, meaning insurance responsibilities can be split between you and a body corporate.

Duplex vs townhouse

A duplex is usually just two separate dwellings that share a wall. They may or may not fall under a strata arrangement.

Townhouses are typically part of a larger complex and are more likely to involve strata schemes and shared insurance arrangements.

Your insurance needs will vary depending on whether a body corporate exists and what it covers.

• Renting and contents insurance explained
• Home insurance claims guide
• How to get portable valuables insurance with GIO

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Read the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.