If you own a property within a community titles scheme (such as a townhouse or apartment complex), you’ve probably heard the terms maintenance and insurance used often — sometimes even interchangeably.
But here’s the thing: maintenance and insurance are not the same.
Just because something is insured doesn’t mean it’s being maintained, and vice versa.
Understanding the difference between the two — and how they interact — is essential for protecting your investment, avoiding disputes, and staying compliant under Queensland’s body corporate laws.
What Does ‘Maintenance’ Mean in a Body Corporate?
While Queensland’s body corporate legislation doesn’t clearly define “maintenance,” it’s generally understood to mean keeping property in good working order through regular upkeep, repairs, and preventative action.
Adjudicators and court decisions have clarified that “maintenance” includes:
- Keeping property in proper order before it deteriorates.
- Taking preventative steps to avoid future damage or malfunction.
- Fixing defects in the original construction or replacing worn-out items.
In other words, maintenance is proactive — it’s about ensuring the property continues to serve its purpose safely and efficiently.
For example, repainting external walls, replacing a broken fence panel, or repairing a leaking gutter all fall under maintenance.
Whether it’s the body corporate or an individual owner responsible depends on the property’s layout and the type of plan (standard format vs building format).
What About Insurance?
Insurance, on the other hand, is about protection against the unexpected.
While maintenance helps prevent damage, insurance helps cover you after something unexpected happens — such as fire, storm, water damage, or malicious acts.
In Queensland, a body corporate must insure:
- The common property and body corporate assets.
- Any buildings containing lots, against legislated risks such as fire, explosion, water damage, impact, and more.
However, in standard format plans (where properties are usually freestanding), individual owners are responsible for insuring their own buildings.
So, while the body corporate’s insurance protects the building as a whole, it doesn’t replace the need for maintenance.
Common Misunderstanding: “If It’s Insured, It’s Maintained”
Many owners assume that if the body corporate insures an item, it’s also responsible for maintaining it.
That’s not always the case.
As confirmed in several legal rulings, whether something is covered by insurance has no bearing on who must maintain it.
Here are two real-world examples that highlight the difference:
Case Study 1: When Insurance Doesn’t Cover Poor Maintenance
Ben owns a townhouse in a standard format plan, where the body corporate insures all buildings that share common walls.
When Ben discovered damage to an exterior wall, he made a claim under the body corporate’s insurance policy — but it was denied. The insurer found the issue was due to poor maintenance, not an insurable event.
Since owners in standard format plans are responsible for maintaining most parts of their building, Ben had to cover the repair costs himself.
Lesson: Even if your property is insured, insurance won’t pay for damage caused by neglect or lack of upkeep.
Case Study 2: When Insurance Does Apply
Jennifer had approval to install solar panels on the common property roof for her unit. After a storm, the panels were badly damaged.
While Jennifer was responsible for maintaining the panels, they were still part of the insured building. Because the damage was caused by a storm — an insurable event — she was able to claim successfully under the body corporate’s policy.
Lesson: Insurance covers the unexpected, not general wear and tear.
How Maintenance and Insurance Affect Each Other
While they’re separate responsibilities, maintenance and insurance often overlap in practice.
Poor or neglected maintenance can:
- Lead to denied insurance claims.
- Increase insurance premiums or excesses.
- Even make it difficult for the body corporate to secure insurance at all.
For example, if a building’s upkeep is neglected, insurers may see it as a higher risk, resulting in higher premiums or limited coverage.
As noted in recent decisions, bodies corporate are encouraged to complete overdue maintenance to improve their chances of obtaining affordable and comprehensive insurance.
Who Pays the Insurance Excess?
When an insurance claim is made, disputes can arise over who pays the excess — the body corporate or the lot owner.
In one recent case, a failed window seal caused water damage to a unit’s floorboards. Because the body corporate was responsible for maintaining the window, it was also found responsible for paying the insurance excess — even though the damage occurred inside the owner’s lot.
The takeaway? The party responsible for maintenance usually pays the related excess.
Key Takeaways for Property Owners and Body Corporates
- Maintenance and insurance are not the same.
Maintenance is about prevention; insurance is about protection. - Stay proactive with maintenance.
Regular upkeep helps prevent costly issues — and ensures insurance claims aren’t denied. - Review your plan type.
Know whether you’re under a standard or building format plan, as this determines who is responsible for what. - Keep clear records.
Document maintenance work, approvals, and insurance communications to avoid disputes. - Consider a maintenance plan.
A scheduled maintenance plan can help keep your property compliant, reduce risks, and protect insurance coverage.
At Metrocity Realty, we work closely with Brisbane property owners, investors, and body corporate committees to help protect and grow their assets.
If you’re unsure who’s responsible for maintenance or how your insurance obligations work under a community title scheme, our team can help point you in the right direction.