Why Northern Strata Schemes Still Face Insurance Cost Pressure

The latest market discussion follows ongoing scrutiny of the cyclone reinsurance pool and the broader challenge of making property insurance more sustainable in higher-risk regions. While the pool was designed to reduce the reinsurance burden on insurers, the practical benefit for strata schemes can differ widely. A well-maintained building with clear valuations, strong roof and facade details, updated fire systems and documented mitigation work may be viewed differently from a scheme with incomplete records or unresolved defects.

This is an extension of our previous discussion of cyclone cover, but the current takeaway is more operational than political. Owners corporations and body corporates should not assume that a national policy setting will automatically flow through to a lower renewal. Instead, committees may need to demonstrate why their building is a better risk than the postcode average.

That means preparing earlier for renewal. Some potentially useful steps may include checking the current insurance valuation, reviewing claims history, documenting maintenance and rectification work, and confirming whether flood, storm, machinery breakdown, liability and temporary accommodation settings remain appropriate. Where rebuilding costs have shifted, schemes should also consider establishing sums insured on a realistic replacement basis, rather than relying on historic figures or market value assumptions.

For lot owners, the affordability issue is bigger than the annual premium notice. Higher excesses, exclusions or restricted terms can affect levies, repair timelines and resale confidence. In northern markets, the difference between broad cover and narrower cover may become more significant after a major weather event, particularly where multiple buildings are competing for assessors, trades and materials at the same time.

The supportive message for strata committees is that there are still practical levers available. Strong records, timely repairs, professional valuations and transparent communication with insurers can help reduce uncertainty during renewal discussions. They may not remove climate and catastrophe pricing pressures, but they can improve the quality of the submission and give the scheme a better chance of securing suitable strata insurance coverage in a demanding market.