income protection insurance banner 1 income protection insurance banner 2 income protection insurance banner 3 income protection insurance banner 4 income protection insurance banner 5 income protection insurance banner 6

Home | Free Quote | Insurance Calculator | About Us | Contact Us | Privacy | Income Protection Insurance

Income Protection Australia :: News
SHARE

Share this news item!

Insurance Council Advocates for Strata Law Reforms to Mitigate Rising Premiums and Building Defects

Addressing the Financial Impact of Building Defects and Insurance Costs on Strata Properties

Insurance Council Advocates for Strata Law Reforms to Mitigate Rising Premiums and Building Defects?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 Insurance Council of Australia (ICA) has called for urgent reforms to strata laws in response to escalating insurance premiums and the financial burden of building defects, which are costing residential apartment owners approximately $1.3 billion annually.

Building defects, including structural issues and inadequate maintenance, are prevalent in many strata complexes across Australia. These defects not only compromise the safety and integrity of buildings but also contribute to increased insurance premiums, as insurers factor in the heightened risk associated with such properties.

The ICA highlights that poor governance and deferred maintenance are transforming insurable buildings into high-risk assets, leading to affordability challenges and, in some cases, rendering properties uninsurable. This situation poses significant financial risks for property owners and investors, as well as potential implications for the broader housing market.

To address these challenges, the ICA proposes several reforms, including lowering the unanimous agreement threshold required for the sale of strata complexes. This change would facilitate the faster renewal or redevelopment of aging and uneconomic buildings that pose insurance risks. By streamlining the decision-making process, property owners can more effectively address structural issues and improve the insurability of their assets.

For real estate professionals, these proposed reforms are particularly relevant. Strata properties represent a significant portion of the housing market, and the ability to manage and mitigate risks associated with building defects and insurance costs is crucial. Understanding the implications of potential legislative changes and advising clients accordingly can enhance service offerings and support informed decision-making.

Furthermore, real estate agents and property managers should advocate for proactive maintenance and governance practices within strata communities. Encouraging regular inspections, timely repairs, and transparent communication can help preserve property values, ensure compliance with insurance requirements, and foster a more stable and attractive market for potential buyers and investors.

As the dialogue around strata law reforms progresses, staying informed and engaged with industry developments will be essential for real estate professionals. Collaborating with industry bodies, participating in consultations, and contributing to policy discussions can help shape a more resilient and sustainable strata property sector in Australia.

Published:Tuesday, 4th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

NSW Introduces Strata Law Reforms to Strengthen Community Governance
NSW Introduces Strata Law Reforms to Strengthen Community Governance
19 Nov 2025: Paige Estritori
On 27 October 2025, the New South Wales (NSW) Government implemented significant reforms to strata laws, aiming to enhance transparency, accountability, and financial management within strata schemes. These changes are designed to better meet the evolving needs of strata communities across the state. - read more
Strata Insurance Affordability Holds Steady Despite Rising House Insurance Costs
Strata Insurance Affordability Holds Steady Despite Rising House Insurance Costs
19 Nov 2025: Paige Estritori
In its 2025 State of the Strata Market report, CHU has revealed that strata insurance premiums have experienced a modest increase of 2.8%, rising to an average of $981 per lot in the year leading up to June 2025. This increment is notably lower than the 14% surge observed in house insurance premiums during the same period. - read more
Consumer Advocates Push for Ban on Strata Insurance Commissions in NSW
Consumer Advocates Push for Ban on Strata Insurance Commissions in NSW
19 Nov 2025: Paige Estritori
Consumer advocacy groups, including the Australian Consumers Insurance Lobby (ACIL) and the Owners Corporation Network (OCN), are urging the New South Wales (NSW) Government to implement a ban on commissions related to strata insurance. They argue that such commissions create conflicts of interest and compromise transparency within the strata management sector. - read more
AFCA Criticises TAL for Unfair Termination of Income Protection Benefits
AFCA Criticises TAL for Unfair Termination of Income Protection Benefits
16 Nov 2025: Paige Estritori
The Australian Financial Complaints Authority (AFCA) has recently ruled against TAL, a prominent life insurer, for terminating a policyholder's income protection benefits without prior notice. This decision underscores the critical importance of procedural fairness in the management of insurance claims. - read more

Home | Free Quote | Insurance Calculator | Income Protection Insurance | About Us | Contact Us | Income Protection Quotes |

Privacy | Site Map | RSS | XML Site Map

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.


IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.

Web design and construction by: Clark Family Pty Ltd A.C.N. 010 281 008 Copyright 2004 - all rights reserved

Calculators supplied by: Financial Calculators Online