ICA Calls for Reforms to Victoria's Strata Laws Amid Rising Insurance Costs

Poor Governance and Deferred Maintenance Identified as Key Factors

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In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects are costing Australians an estimated $1.3 billion annually, with many strata buildings facing challenges in securing affordable insurance due to structural issues and inadequate risk management.

The ICA's recommendations include enhancing transparency and accountability within owners corporations, providing better education resources for committee members, and implementing stronger enforcement mechanisms to address building defects. These measures aim to improve the management and maintenance of strata properties, ultimately leading to more affordable insurance premiums for property owners.

Property owners and investors are encouraged to stay informed about potential legislative changes and to actively participate in the governance of their strata schemes. By promoting better management practices and addressing maintenance issues promptly, strata communities can work towards securing more affordable and sustainable insurance coverage.

Published:Saturday, 24th Jan 2026
Source: Paige Estritori

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Knowledgebase

Premium:
The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.

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