Your condo has a master insurance policy — but it probably doesn’t cover your renovation or contents. Here is what strata insurance does and doesn’t protect.
General guidance for 2026 — not legal advice. Strata matters are governed by the Strata Management Act 2013 & Strata Titles Act 1985; consult your COB or a lawyer. Renovating a strata unit? Ask us →
Insurance is one of the items your maintenance charge pays for — but many owners wrongly assume the building’s master policy covers everything in their unit. The gap between what the master policy covers and what it does not can be very expensive. Knowing the boundary before disaster strikes can save you a painful and costly surprise after a fire, flood or burst pipe. This guide explains exactly what is covered, what is not, and what you should do to close the gap.
The Strata Management Act 2013 → requires the JMB/MC to take out and maintain insurance on the building for its full reinstatement value, against fire and other prescribed risks, plus public liability for accidents in common areas. It is funded from the maintenance account →. The management committee is responsible for renewing the policy annually, obtaining a professional reinstatement valuation periodically, and ensuring the sum insured keeps pace with construction cost inflation. An under-insured building leaves all owners collectively exposed to a shortfall in any major claim — and a special levy would be needed to fund the gap.
| What is damaged / lost | Master policy | Your own policy needed? |
|---|---|---|
| Building structure (walls, roof, lifts) | ✓ Covered | No |
| Common-area fixtures and fittings | ✓ Covered | No |
| Your interior renovation (built-ins, tiling) | ✗ Not covered | Yes |
| Your furniture and electronics | ✗ Not covered | Yes |
| Your valuables and jewellery | ✗ Not covered | Yes (with special cover) |
| Bodily injury in common area | ✓ Public liability covers | No |
| Your personal liability (from your unit) | ✗ Not covered | Yes |
Because the master policy stops at the structure and common property, your expensive renovation and belongings are completely uninsured unless you take your own householder, houseowner or contents policy. After a full renovation a condo interior can easily be worth RM100,000 or more in built-in carpentry, tiling and appliances alone — all of which would need to be rebuilt at your own expense without a policy in place.
Two important points for renovating owners: first, tell your insurer about major renovations before and after works, and update your sum insured so your upgraded interior is covered from the day works are complete — do not wait until renewal; second, a reputable renovation contractor should carry their own workmen’s compensation and public liability insurance during works, protecting you if a worker is injured or your neighbours’ property is damaged. Always ask for the contractor’s insurance certificate before work begins and keep a copy on file. After completion, review and update your contents and renovation policy to reflect the new value. See condo renovation cost →.
For common-property damage (e.g., a fire in the lift lobby or a burst common pipe that floods multiple units), the MC manages the insurance claim under the master policy and oversees the reinstatement. For damage originating inside and limited to your own unit, you claim under your own contents or householder policy. Keep clear records of your renovation costs, receipts and photos from the start — these are essential evidence for a contents or renovation claim and are very difficult to reconstruct after the fact.
Inter-floor leaks are one of the most contested strata insurance scenarios. Responsibility depends on where the leak originates: a burst common pipe in the ceiling is the MC’s responsibility (master policy); a burst pipe inside a unit is the unit owner’s responsibility (your own policy). The boundary is set by the strata plan. See ceiling leak repair → and strata common property → for how to determine responsibility.
| Action | When | Why |
|---|---|---|
| Ask at AGM if master policy is renewed | At every AGM | A lapsed policy exposes all owners to uninsured risk |
| Buy/renew your contents policy | Annually | Master policy does not cover your renovation or contents |
| Update your sum insured | After each renovation | Avoid under-insurance on your upgraded interior |
| Get contractor insurance certificate | Before renovation starts | Confirms contractor carries own liability cover |
This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:
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