NIBA / Special Feature
before individual chargers could be installed – and suggests strata insurance pricing could in the future be based on the number of charging stations.
“These trends present ongoing challenges for insurers and reinforce the importance of ensuring properties are adequately insured. Despite rising replacement costs, many strata properties remain underinsured because building valuations have not been updated regularly or have failed to keep pace with current construction costs. In the event of a major loss, inadequate sums insured can leave owners facing significant financial shortfalls.” Understanding the drivers – and the relationship For brokers, it’s essential to be aware of both the emerging risks, and the sentiment of strata communities, too, as Jonsson shares: “Brokers should be aware of a real shift in how strata communities think about risk. Our 2026 Strata Index identified three distinct mindsets among lot owners: Disengaged, Pragmatists and Actives. Each group responds to different conversations and needs different support, so brokers who can tailor their approach to where a client sits in their knowledge and engagement will find it easier to build trust and guide schemes toward better outcomes.”
Another consideration, highlighted by the SCA report, is the split between users and decision-makers, with SCA research showing nearly half of apartments are rented. This creates a challenge in that demand for EV upgrades may come from tenants, while the costs of infrastructure will be borne by the owners corporation. Regardless of where the demand is coming from, and the specific issues arising at this precise moment, however, those long-term relationships are paramount. Robson says, “Strata properties are long- term assets that require long-term insurance solutions. Clients need confidence that their insurer will remain committed to the market, continue supporting policyholders through changing conditions, and have the resources and expertise to respond effectively when significant losses occur. For this reason, brokers should prioritise partnerships with insurers that have a proven track record, strong claims performance, and a reputation for consistency and reliability. “History has shown that market conditions can change quickly, making insurer stability and long-term commitment increasingly important.”
As well as the upfront cost, there’s an impact on sums insured, too.
“The cost of repairing and rebuilding strata properties continues to increase, with little indication that these pressures will ease in the near term. Inflationary factors such as rising construction costs, skilled labour shortages, increased material prices, and ongoing supply chain challenges have contributed to a steady increase in average claim costs,” says Robson. “At the same time, the nature of strata developments has evolved significantly. What was once a relatively simple low-rise building constructed from brick, concrete, and tile is now often a large, multi-storey complex comprising hundreds of lots, sophisticated building systems, shared facilities, and multiple structures. As strata properties have become more complex, so too have the repairs required following a loss. Repairs that may once have taken weeks can now take months to complete, increasing both the cost and complexity of claims.
URGENT RESPONSE REQUIRED AFTER MALICIOUS FIRE HYDRANT USE CASE STUDY SUPPLIED BY CHU. CLAIM EXAMPLE:
A recent example involves a 24-storey residential strata building where multiple fire hydrants were maliciously released, flooding 19 floors of the building. In this claim, we had over 150 lots affected and around 300 residents displaced, including vulnerable NDIS residents who required wheelchair-accessible accommodation. The building didn't have a broker in place, so the strata manager came straight to us for support. Within 24 hours, we had a full specialist team on site, including loss adjusters, structural engineers, occupational hygienists, project managers and a builder. We issued an emergency payment per lot owner to ease immediate financial pressure. To aid communication, we set up a dedicated call centre with interpreter access due to a high number of international students in the building. We also set up an email line and ran weekly in-person progress meetings with the owner's representative for the duration of the works. Our Customer Care Manager was directly involved to ensure all vulnerable residents were supported. What made the response possible was the pre-existing relationships we had with each of those specialist providers. We weren't sourcing them in a crisis; they were ready to go. Every resident was back home within three months. And across a claim of that scale, we received zero complaints.
52 / INSURANCE ADVISER JUNE/JULY 2026
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