A Practical Guide for Body Corporate Owners

Strata insurance premiums across Australia have risen significantly in recent years. Natural disasters, increasing construction costs, building defects, and stricter insurer risk assessments are all contributing factors.

While many of these pressures are outside your control, insurers consistently favour buildings that are well-maintained, compliant, and proactively managed. As a body corporate owner or committee member, your decisions directly influence how your building is perceived by insurers—and ultimately, how much you pay.

Here are practical steps your committee can take to help manage risk and keep premiums under control.

1. Prioritise Ongoing Maintenance

One of the biggest red flags for insurers is deferred maintenance. Issues such as:

• Water ingress
• Roof deterioration
• Cracked balconies
• Failing waterproofing membranes
• Ageing building systems

…can significantly increase the likelihood of insurance claims.

By ensuring your building has a structured maintenance program and that issues are addressed early, you demonstrate responsible management and reduce the risk of costly claims.

2. Stay on Top of Safety and Compliance

Insurance providers look closely at whether your building meets safety and regulatory requirements.

Your committee should ensure the following are completed and up to date:

• Fire safety system inspections
• Essential services testing
• Electrical safety checks
• Lift and mechanical equipment inspections
• Workplace health and safety reviews
• Structural or façade assessments where required

Completing these reports early ensures insurers have clear documentation that the building meets required standards. It can also prevent delays or additional follow-ups during insurance renewal.

In several cases reported in the media, buildings that delayed addressing compliance issues later faced regulatory notices, major rectification costs and increased insurance scrutiny.

3. Address Defects Before They Escalate

Recent news coverage across Australia has highlighted the growing impact of building defects in apartment developments.

Large strata complexes have faced significant rectification bills after defects involving waterproofing, structural elements, fire systems or cladding were discovered. When these issues remain unresolved, insurers may view the building as a higher risk.

Early engineering inspections and proactive defect management can help identify issues before they escalate into large and costly claims.

4. Maintain Clear Building Documentation

Insurers often request documentation when reviewing or renewing strata policies. Having clear records available can streamline the process and reduce delays.

Useful documents include:

• Recent inspection and compliance reports
• Maintenance records
• Engineering or structural assessments
• Fire safety statements or essential services reports
• Evidence of completed repairs or upgrades

Buildings with well-organised documentation demonstrate transparency and responsible management, which can improve insurer confidence.

5. Work with experienced professionals

Committee decisions are strongest when backed by expert advice.

Working with experienced engineers, consultants, and building professionals helps you:

• Identify risks early
• Prioritise works effectively
• Ensure compliance obligations are met
• Make informed financial decisions

This proactive approach reduces uncertainty and strengthens your position with insurers.

Preparing For Your Next Insurance Renewal

Insurance renewals are becoming more detailed, with insurers increasingly requesting additional documentation about building condition, maintenance history and compliance. Being prepared ahead of renewal can help reduce delays, avoid insurer concerns, and support more favourable insurance outcomes.

Insurance Renewal Preparation Checklist

Before your next renewal, ensure your building has:

• An up-to-date building valuation
  Ensures the building is correctly insured and avoids under-insurance issues.
• A recent safety or risk assessment report
  Helps identify potential hazards and demonstrates proactive risk management.
• An updated preventative maintenance plan
  Shows insurers that building systems and assets are regularly maintained.
• Façade or structural condition checks (where relevant)
  Provides assurance that external building elements are safe and well maintained.
• Fire safety systems inspected and documented
  Ensures essential services are compliant and functioning correctly.
• An asbestos register or audit (for older buildings)
  Confirms hazardous materials are identified and properly managed.

Being prepared with the right reports and documentation can make a significant difference when insurers assess building risk.

If you are planning ahead for an upcoming renewal or want to review your building’s risk profile, SIE can assist with inspections, reporting and maintenance planning to help support better insurance outcomes.

Call our office on 1300 136 036 or email enquiry@solutionsinengine