Disaster Resilience Moves Higher on the Strata Insurance Agenda

The latest industry commentary continues a broader premium pressure story already familiar to many apartment owners. While reinsurance costs, construction inflation and claims frequency all play a role, insurers are increasingly focused on whether properties can demonstrate practical risk controls. That can include roof and gutter maintenance, drainage upgrades, compliant fire systems, lift and plant room protection, waterproofing records, and evidence that defects have been addressed rather than deferred.

For owners corporations, this shifts insurance from a once-a-year renewal task to an ongoing governance issue. A committee that can present a clear maintenance plan, current building reports and documented mitigation work may be better placed during renewal discussions than a scheme with incomplete records or unresolved defects. It does not guarantee cheaper cover, but it can help insurers understand the risk more accurately.

The affordability challenge is also tied to sums insured. Replacement costs can move quickly when labour, materials, professional fees and debris removal allowances rise. If the insured value is outdated, a scheme may face underinsurance after a major loss, even if the premium looked competitive at renewal. Committees should periodically estimate a practical strata building sum insured and compare that figure with professional valuations and policy limits.

The practical takeaway is that resilience is becoming part of the insurance conversation. Strata managers and committees should ask three questions before the next renewal: what hazards are most relevant to the building, what mitigation work has been completed or budgeted, and what evidence can be supplied to insurers or brokers? A well-organised renewal file can make it easier to compare terms, explain risk improvements and identify gaps in cover.

For lot owners, the issue is ultimately financial as well as practical. Better resilience planning may reduce the chance of disruptive claims, special levies and renewal surprises. As severe weather risk becomes more prominent in underwriting, proactive maintenance and transparent records are likely to become increasingly important features of sound strata insurance management.