Recent regulatory updates to the Cyclone Reinsurance Pool, effective from April 1, allow strata buildings in eligible regions to receive insurance premium reductions when undertaking approved mitigation activities. These activities include structural reinforcements such as storm-resistant windows, upgraded roofing, and compliant external doors.
In addition to the reinsurance pool updates, the $40 million Strata Resilience Program has been launched, jointly supported by the federal and Queensland governments. The program provides grants covering up to 75% of the costs for cyclone mitigation measures, with limits set at $15,000 per residential lot and $150,000 per strata scheme.
Insurance experts advise bodies corporate to begin the upgrade process promptly and consult with their insurers about documentation requirements. They also recommend policyholders to inquire how savings from the reinsurance pool are passed on.
These initiatives are part of a broader effort to address rising insurance costs in high-risk cyclone zones, where premiums can be up to three times higher than in lower-risk parts of Australia. By investing in resilience measures, strata owners can not only enhance the safety of their properties but also achieve substantial savings on insurance premiums.
