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CHU's 2025 Strata Market Report: Stability in Strata Insurance Amid Rising House Insurance Costs

Understanding the Trends in Strata and House Insurance Premiums

CHU's 2025 Strata Market Report: Stability in Strata Insurance Amid Rising House Insurance Costs?w=400

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In its recently released 2025 State of the Strata Market report, CHU, Australia's leading strata insurance underwriting agency, provides an insightful analysis of the current landscape of strata insurance.
The report underscores a notable stability in strata insurance premiums, which have seen a modest increase of 2.8% over the past year, rising from $954 to $981 per lot annually.
This increment is significantly lower than the 14% surge observed in house insurance premiums during the same period.

The relative steadiness of strata insurance costs is attributed to several factors. Firstly, the communal nature of strata living often leads to shared maintenance responsibilities and collective risk management, which can mitigate individual exposure to claims. Additionally, the construction standards and materials used in modern strata developments may contribute to their resilience against certain risks, thereby influencing insurance pricing.

CHU's report also highlights regional variations in strata insurance premiums. For instance, Adelaide's average premium stands at $842 per year, while Sydney's is higher at $1,176. These differences reflect local market conditions, property values, and specific risk factors pertinent to each area.

Despite the overall stability, the report identifies emerging challenges within the strata sector. A CHU survey revealed that 39% of respondents prefer only the 'bare minimum' insurance coverage, indicating a potential trend towards underinsurance. This preference may stem from a lack of understanding about the comprehensive protection that adequate strata insurance provides. Underinsurance can leave property owners vulnerable to significant financial losses in the event of unforeseen incidents.

Furthermore, the report emphasizes the importance of proactive building maintenance. Well-maintained properties are less likely to experience issues that could lead to insurance claims, thereby contributing to the stability of insurance premiums. CHU's Chief Executive Officer, Kimberley Jonsson, advocates for a collaborative approach among strata professionals, including insurers, managers, and brokers, to educate property owners about the value of appropriate coverage and the benefits of regular maintenance.

In conclusion, CHU's 2025 report presents a positive outlook for the strata insurance market, highlighting its resilience amidst broader industry challenges. The findings serve as a call to action for all stakeholders to prioritize education, maintenance, and comprehensive coverage to ensure the continued stability and affordability of strata insurance for property owners across Australia.

Published:Wednesday, 22nd Apr 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.

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