Australian Government Checks Strata Insurance

The natural disasters that have seriously affected strata buildings in northern Australia over the last 2 years have left many difficult and unanswered questions for strata stakeholders, insurers and government.  


Questions like -

• Why weren't the buildings covered for the cyclone and flood damage?
• Should strata laws be changed to make this kind of insurance compulsory?
• What should insurers do in response?
• Can (and should) government intervene?
• How can strata owners respond?

Now the House of Representatives Standing Committee on Social Policy and Legal Affairs has decided to consider issues around residential strata insurance as part of its inquiry into the operation of the insurance industry.  The extension was announced by Assistant Treasurer Bill Shorten and Committee Chair, Mr Graham Perrett MP, as an extension to the Terms of Reference and will allow the Inquiry to examine factors influencing the affordability of residential strata insurance.

Mr Perret said “At the invitation of Strata Community Australia, Mr Entsch and I attended a meeting in Cairns last week and heard from more than 150 strata title unit owners, managers and real estate agents about rising costs of strata insurance."


You can read more about it at Graham Perrett MP's press release.


So, it seems that strata owners insurance risks will now get proper consideration as part of the national review of disaster insurance.


Well done Strata Community Australia for getting attention to this issue.




Francesco ...