Strata Insurance Premiums Hold Steady as House Insurance Costs Surge

In stark contrast, premiums for standalone house insurance have surged by 14% over the same timeframe. This significant disparity is attributed to concentrated climate risks and the structural vulnerabilities inherent in detached homes. The relative stability of strata insurance premiums offers a competitive advantage for strata managers and brokers when communicating value to clients.

CHU's analysis suggests that the affordability of strata insurance is a positive development for the industry. Kimberley Jonsson, Chief Executive Officer at CHU, stated, "In real terms, strata insurance remains affordable, which is great news for strata owners and for the wider industry. This is an opportunity for strata managers and brokers to help communicate to owners that, while premiums may grow, they are remaining relatively affordable."

The report also highlights the impact of recent weather events on the insurance sector. In 2025, Australia experienced a series of significant weather events, including cyclones and widespread flooding, which have reinforced the importance of climate risk management in strata insurance. Despite these challenges, the Australian Reinsurance Pool Corporation (ARPC) conducted a review in September 2025 and concluded that premiums for strata properties would remain unchanged, affirming the adequacy of current pricing for the risk profile of strata properties.

Regulatory developments are also shaping the strata insurance landscape. Reviews in New South Wales, Western Australia, and the Australian Capital Territory are introducing new requirements for transparency, consumer protection, and professional standards. In New South Wales, recent reforms include standardised maintenance planning, enhanced conflict-of-interest disclosures, and improved hardship protections for owners. Western Australia is considering new professional qualifications for strata managers, while the ACT is reviewing potential licensing changes.

Building defects and emerging risks, such as the rise in lithium-ion battery fires, are additional concerns for the strata sector. The 2025 NSW Strata Defects Survey has been launched to gather updated data on the prevalence and management of defects. Legal precedents are increasing builder accountability, and further regulation may be needed. In response to the increase in battery-related incidents, regulators have issued new safety guidelines, and many strata managers are implementing formal battery management policies.

Looking ahead, the report forecasts that affordability, climate resilience, and regulatory compliance will remain central themes for the strata insurance sector. Key developments anticipated in 2026 include further reforms in New South Wales, the conclusion of Western Australia's five-year strata law review, and the next ARPC Cyclone Pool assessment. As density increases, so do expectations. The strata sector has an opportunity to set a new standard for urban living across Australia.