Strata Cover Australia :: News
SHARE

Share this news item!

What the New NSW Disclosure Rules Mean for Strata Cover

Committees should treat renewal season as a governance checkpoint

What the New NSW Disclosure Rules Mean for Strata Cover?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The latest phase of New South Wales strata reform has brought strata insurance disclosure back into practical focus, moving the issue from policy debate to renewal-season reality for owners corporations.
The changes are designed to make it clearer when a strata managing agent, broker, insurer or related party receives a commission, fee or other financial benefit connected with arranging insurance.

For committees, the significance is not simply that more information may appear in renewal papers. The bigger shift is that insurance decisions are likely to be judged more closely against process: what options were considered, how conflicts were managed, whether commissions were transparent, and whether the final recommendation was in the scheme’s interests. That matters because insurance is often one of the largest annual expenses for a strata community, and premium increases are ultimately felt by lot owners through levies.

This is an extension of the trust and governance issues already highlighted in previous reporting. While individual enforcement matters and reform processes differ, the common theme is that owners want clearer visibility over who is being paid, by whom, and for what service. A renewal pack that lists only the selected policy price may no longer be enough to satisfy well-informed committees.

In practical terms, owners corporations should use the reforms as a prompt to sharpen their internal insurance checklist. Before approving a renewal, committees should ask whether multiple options were explored, whether major exclusions or excess changes have been explained, and whether the building sum insured remains realistic. Premium comparison alone can be misleading if one policy has narrower flood wording, higher water damage excesses, lower catastrophe allowances or weaker liability protections.

The sum insured question is especially important. Higher rebuilding costs, professional fees, debris removal, compliance upgrades and delays in construction can all affect whether a scheme is adequately protected after a major event. Committees that want to estimate current rebuild costs should treat any calculation as a planning tool rather than a substitute for a formal valuation, but it can still help identify whether a deeper review is needed.

The best response is not to treat disclosure as a paperwork exercise. It should be part of a broader governance rhythm: document the questions asked, record the reasons for accepting a recommendation, review conflicts, and make sure owners can understand the trade-offs. In a market where strata insurance cost, coverage and availability remain under pressure, transparent process is becoming a core part of protecting the scheme.

Published:Wednesday, 9th Sep 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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What the New NSW Disclosure Rules Mean for Strata Cover
What the New NSW Disclosure Rules Mean for Strata Cover
09 Sep 2026: Paige Estritori
The latest phase of New South Wales strata reform has brought strata insurance disclosure back into practical focus, moving the issue from policy debate to renewal-season reality for owners corporations. The changes are designed to make it clearer when a strata managing agent, broker, insurer or related party receives a commission, fee or other financial benefit connected with arranging insurance. - read more
Why Insurance Tax Reform Is Back on the Strata Agenda
Why Insurance Tax Reform Is Back on the Strata Agenda
02 Sep 2026: Paige Estritori
The latest affordability push from Australia’s insurance industry has put state-based insurance taxes back in the spotlight, with renewed attention on how levies and duties can add to the cost of cover before a building’s individual risk profile is even assessed. For strata communities, that debate matters because premiums are usually paid collectively, then passed through to owners via levies. - read more
Why Rebuild Cost Pressure Matters for Strata Insurance
Why Rebuild Cost Pressure Matters for Strata Insurance
26 Aug 2026: Paige Estritori
Fresh attention on Australia's construction cost environment is a useful reminder for strata communities that insurance adequacy is not just about the premium charged at renewal. For owners corporations and body corporates, the more important question is whether the insured value of the building would still be enough to rebuild, reinstate common property and meet associated professional costs after a major loss. - read more
Why Northern Strata Schemes Still Face Insurance Cost Pressure
Why Northern Strata Schemes Still Face Insurance Cost Pressure
19 Aug 2026: Paige Estritori
Fresh industry attention on insurance affordability in northern Australia has reinforced a message many strata communities already understand: premium relief is not delivered by a single reform, even where government-backed risk sharing is in place. For apartment buildings, townhouse complexes and mixed-use strata schemes exposed to cyclone, storm surge, flood or severe rainfall, insurers are still looking closely at the physical characteristics of each building before deciding price, excesses and available cover. - read more


Strata Insurance Articles

Understanding State-by-State Insurance Requirements for Strata Schemes in Australia
Understanding State-by-State Insurance Requirements for Strata Schemes in Australia
Strata schemes are a popular form of property ownership in Australia, particularly in cities where high-density living is common. A strata scheme is essentially a building or collection of buildings that allows for individual ownership of a part of the property, combined with shared ownership of common areas. Residents coexist in a community and collectively manage shared spaces such as gardens, driveways, or facilities. - read more
The Importance of Updating Your Strata Insurance Policy
The Importance of Updating Your Strata Insurance Policy
Strata insurance is a specific type of insurance designed to cover shared property and common areas within a strata-titled property. This includes coverage for dwelling structures, common hallways, roofs, and sometimes even shared swimming pools or gardens. - read more
Understanding the Layers of Strata Insurance
Understanding the Layers of Strata Insurance
Strata insurance, also known as body corporate insurance, is a form of cover specifically designed for properties that share ownership or have multiple units. It typically covers the building and common areas, along with liability protection. This includes areas such as the roof, stairwells, lifts, driveways, and shared spaces in residential complexes, units, or apartments. - read more
How to Make a Claim on Your Strata Insurance: A Step-by-Step Guide
How to Make a Claim on Your Strata Insurance: A Step-by-Step Guide
When it comes to strata insurance, making a claim can feel daunting if you're not familiar with the process. A vital first step is understanding what constitutes a claimable event. Typically, these are events that lead to damage or loss in the common areas of a property, such as fire, storm damage, or vandalism. However, each policy can vary, so it’s important to check the specifics of what your coverage includes. - read more

Knowledgebase
Flood Insurance:
A specific type of property insurance that covers losses and damage caused by flooding.