Strata underwriter CHU has increased its coverage cap for residential and commercial buildings to cater for larger risks. 

Its strata insurance capacity has increased to a $690 million maximum sum insured for any one risk – more than double the previous cap of $300 million.

CEO Kimberley Jonsson says strata developments are becoming bigger, both in size and unit volume. 

But new strata participants’ capacity has been capped in recent years at the lower end, leaving the market “desperately seeking more options” for large sums insured. 

“CHU welcomes the opportunity to provide insurance for customers across a wider scale, expanding our product offerings to considerably larger buildings,” she said. “CHU will now be able to independently offer quotes for larger risks, while also being able to, where needed, place larger shares in existing co-insurance arrangements.”