Body corporates “collectively gained ground” on insurance affordability as strata premiums rose a “modest” 2.8% to $981 per lot in the year to June, CHU says.

In the same period, house insurance premiums surged 14%.

“Apartment owners face fundamentally different circumstances than house owners and their insurance reflects that,” the strata underwriter said.

“Strata insurance has continued to remain affordable for owners despite the general pressures facing the sector.

“For brokers, this data can help position price increases, when they do occur, as affordable compared to income growth and house insurance, and stable compared to last year.”

Strata premiums averaged $842 a year in Adelaide, $995 in Brisbane, $1403 on the Gold Coast, $920 in Melbourne, $1085 in Perth, $1176 in Sydney and $765 in Hobart.

That compared with house insurance premiums ranging from $1933 in SA to $3166 in Queensland, CHU says.  

Meanwhile, a CHU survey has found 39% of respondents want the “bare minimum” insurance.  

“This preference towards underinsurance reflects a lack of understanding of the role strata insurance plays in protecting resilient communities,” the underwriting agency said, adding the results “point strongly to strata insurance being a grudge purchase for many owners”.  

CHU says the industry needs to help lot owners understand the importance of appropriate coverage and the risks of getting it wrong.

The survey also found that most lot owners see opportunity for improvement in building maintenance.  

CHU CEO Kimberley Jonsson says it “highlights a clear opportunity for strata professionals – including insurance providers, managers and brokers – to take on a new mindset: that of an educator. Education has real, measurable impact – improving maintenance, compliance, safety and coverage.”

Click here to view the reports.