A real example of the benefits of our newly introduced Lot Owners’ Contents Cover.

Answering your questions about our newly introduced Lot Owners’ Contents Cover.

Outlines key policy changes, and should be read in conjunction with latest Product Disclosure Statement and Policy Wording.

Our policy encompasses additional and increased benefits over the minimum required by law.

Examining the attitudes, perceptions and behaviours of owners in strata across Australia.

CHU, Australia’s largest strata insurance underwriting agency, has released the inaugural CHU Strata Index, a comprehensive study examining the attitudes, perceptions and behaviours of owners in strata across Australia.

The research surveyed 1,000 owners involved in their Owners Corporation across Australia, finding there are significant building maintenance gaps as more than one quarter (28%) of properties are checked irregularly, or not at all. 

The research also revealed opportunities for strata professionals to strengthen their role as both educators and trusted partners. While almost half (40%) of owners see strata managers as essential to making property management easier, respondents voiced their opinions on the value and cost of strata managers. The findings point to clear opportunities for strata managers to build on this foundation by adapting how they communicate their value to owners.

Maintenance gaps across Australian strata schemes

The Index uncovered a maintenance crisis waiting to happen. One quarter (28%) of properties are checked irregularly — or not at all — for maintenance issues, and over a third (35%) don’t have a maintenance action plan in place. These gaps signal future building risks and financial shocks for Owners Corporations, as unaddressed maintenance can escalate into major repairs.

“Proper maintenance is one of the keys to more resilient communities. I believe maintenance is just as much of an investment in safeguarding communities as insurance is”, Ms Jonsson said. “Every strata professional has a role to play, starting with helping owners understand what good building maintenance looks like and how their decisions affect resilience, risk management and long-term value. By doing so, we can all contribute to strengthening strata communities”

Attitudes to strata management

The research reveals a varied relationship between owners and strata managers, highlighting an opportunity for strata managers to articulate the value of their work, and to support education of owners.

Almost half of respondents (40%) are supporters of strata managers and believe they make property management easier for owners, while 43% believe strata managers are essential for handling complex compliance and safety issues. When asked why they work with strata managers, half (50%) recognise their work ensuring regulatory and safety needs are met for their buildings. However, many are concerned with fees as almost half (40%) of respondents perceive strata manager fees as too high for the value received.

Understanding and perceptions vary across different property types and values. One third of respondents (32%) believe strata managers are unnecessary for property management tasks, while another third (34%) believe complex compliance and safety issues could be handled by owners without a strata manager.

“This data shows some owners are yet to recognise the role strata managers play as partners, supporting the community they live in. Those communities that recognise this value and tap into the expertise and capabilities of their strata managers, are more likely to be regularly maintained, compliant and safe communities. These are all qualities of healthy strata,” added Ms Jonsson.

Attitudes towards strata insurance

Appropriate strata insurance cover is critical to protect shared properties and foster more resilient communities, yet it remains one of the least understood aspects of strata ownership.

The Index found gaps in insurance understanding, with more than one-third (39%) of respondents wanting only the bare minimum insurance coverage, while nearly one-fifth (17%) are unsure how their strata insurance is purchased.

The findings suggest many owners don’t understand the complexity of strata insurance or the risks of underinsurance, or view insurance as essential protection for their investment.

The research showed these attitudes shift when strata managers and brokers are involved in the insurance process. In these instances, owner satisfaction rates increase, demonstrating a clear opportunity for strata professionals to build trust and support owners as they navigate this critical area.

Download and read the CHU Strata Index

At CHU, we’ve handled thousands of strata claims, and we know the most common ones inside out. If you’re wondering what the most common residential strata claims are, the biggest culprits include: water damage, weather events, accidental damage, legal liability, fire, theft and vandalism. The good news is that many of these claims can be reduced, or even prevented, with the right maintenance and risk management.

In this guide, we’ll walk through the six most common residential strata insurance claims and share practical steps you and your strata committee can take to avoid them.

How Can You Avoid Water Damage in Strata Buildings?

From CHU’s internal data, just over 50% of residential strata claims^ lodged are the result of water damage. Whether it’s a burst pipe, overflowing water or even roof damage — if it’s not managed in time, it could lead to a large claim.

Gradual deterioration or wear and tear should be rectified by maintenance. The source of leaks can be hard to detect, so getting some help to do so can be valuable. Modern technology enables pipe location/leak detection with minimal exploratory destruction.

CHU has access to Drones and Lidar technology that can identify damage to roof areas safely.

How to avoid:

Here are some steps to help prevent water leaks and damage in your strata property:

• Check the warranty expiry date on the collar of flexi hoses and that they are intact on all personal and communal appliances which are plumbed in, like washing machine, dishwasher and water filter
• Clean and maintain roof and gutters and look for for damaged tiles, obstructions or blockages
• Investigate any reports of water pressure changing or an increase in water charges, there could be a leak behind the walls or with the garden reticulation
• Inspect walls and ceilings for blistering, water marks or stains
• Don’t walk away when filling the bath or sink
• Turn off the water when leaving your residence for a longer period of time

How Can You Reduce Storm and Flood Insurance Claims?

Although Australia is famous for its great weather – we know that it can actually be very turbulent, and sometimes extreme. From CHU’s internal data, natural events including storms make up for around 25% ^ of residential claims each year.

How to avoid:
Make sure your building is storm-ready by:

• Keeping contents and appliances out of areas that are at risk of flooding
• Clearing gutters and balconies regularly, so rainwater can drain
• Trim back trees and branches
• Secure loose items such as chairs, bins, and outdoor items during storm warnings to prevent them from becoming hazardous projectiles
• Prepare your residents for storms, by informing them of what to do when there’s a storm approaching  
• Tune into local weather reports and check in on your neighbours and tenants that they are safe and prepared

How Can You Prevent Accidental Damage in Strata Properties?

Accidental damage claims can be some of the most frustrating, because they often could have been easily avoided.

How to avoid:

• Ensure communal areas are kept well maintained, clean and tidy, and that common traffic areas are clear of obstructions to prevent an incident
• Check before you dig in the garden to prevent damage and disruption to reticulation or infrastructure networks (Dial before you dig www.1100.com.au)
• Use professional tradespersons for maintenance and/or installations
• Educate residents about proper care and use of common areas and facilities

What Does Legal Liability Cover in Strata Insurance?

Not the most common claim, but Legal Liability can be the most expensive. It covers you when you’re legally responsible to pay compensation if an incident has occurred.

This could include covering the legal and indemnity costs for:

• Accidental damage to someone’s personal property in common areas – including tradespersons
• Injury or death caused by negligence, and any loss of earnings due to injury
• Wrongful acts by an Office Bearer (e.g. the Chairperson, Secretary or Treasurer of the committee) for a breach of duty or clerical mistake

How to avoid:

• Keep an eye out for any potential safety hazards, take all reasonable action to minimise a risk as soon as possible and report any potential concerns to the Body Corporate
• Encourage residents to promptly report issues  and safety concerns to the Body Corporate or Strata Manager
• Keep a record of any potential hazards and actions taken to mitigate these risks. This can provide valuable evidence in the case of a legal dispute
• Establish clear procedures for managing risks, including emergency response plans and clear signage in common areas
• Ensure that all Office Bearers are aware of their duties and responsibilities so that they can perform their roles effectively

How Can Strata Committees Reduce Fire Risks?

If a fire starts in your building it can spread fast and the damage can quickly become a total loss. 

As well as having fire safety equipment fitted, get your appliances serviced regularly and act quickly if someone reports an issue with wiring or power outlets.  Consider installing an RCD (residual current device) for additional protection that ordinary fuses and circuit-breakers cannot provide.

Here are some of the most common sources of residential fires to be aware of:

• Faulty wiring or old appliances causing electrical/mechanical fires, such as air conditioning units or dryers
• Lint filters on washing machines and dryers that are not cleaned
• Kitchen fires caused by fryers, overheating pans and hotplates
• Candles and incense burners left unattended
• Cigarette related fires – indoors and on terraces and balconies

How  to avoid:

• Conduct regular maintenance and inspections to ensure all electrical systems including fire alarms are working properly
• Regularly clean out lint filters in dryers
• Install and maintain fire safety equipment such as smoke detectors, sprinklers, and alarms
• Establish a fire safety protocol such as regular fire drills and emergency evacuation plans
• Encourage residents to never leave cooking unattended, extinguish naked flames like candles before leaving a room, and educate them on the safe storage of flammable items
• Equip common areas and units with fire extinguishers and fire blankets with clear instructions on how to use them in the event of a fire

How Can You Prevent Theft and Vandalism in Strata Buildings?

Items in the common areas like BBQs, gardening tools and gym equipment may be an attractive target for burglars. Often it can be easier to gain access to these areas than resident’s homes, and they can blend in around the building under the guise of a tradesperson or new resident.

As well as replacing any stolen items, you might also have to claim for broken windows and doors or new locks if the intruders have forced their way into the building. So sometimes a small break-in could result in a much larger insurance claim.

How to avoid:
Here’s a few easy actions you and your residents can take to help prevent a break-in or theft in the building:

• Introduce yourself — get familiar with your neighbours and tenants so you’ll recognise anyone out of place
• Don’t be afraid to question unfamiliar people entering the property
• Consider adding smart locks to shared areas like garages, terraces and gyms
• Don’t leave doors propped open – especially during deliveries or removals
• Wait for the shared garage door to be closed before exiting the driveway
• Increase your security by adding intercoms, motion lights or security cameras – although pricey it is a good investment

Find out more about CHU Residential Strata Insurance Plan

 How Can Strata Committees Reduce Insurance Claims Overall?

Mitigating the risks in your strata property decreases the likelihood of urgent repairs and the need to file claims. By regularly inspecting your building and maintaining ongoing upkeep, you can significantly reduce the risk of potential issues. 

1. Schedule Regular inspections

Conducting regular building inspections helps identify and address any issues before they escalate into costly problems. Many strata claims stem from poor maintenance and known maintenance defects. Furthermore, an ongoing lack of maintenance can lead to multiple claims, increasing the risk profile of your property. Demonstrating proactive maintenance practices, such as scheduling routine checks, addressing issues promptly, and maintaining up-to-date records, is essential in minimising risks.

2. Upgrade security and fire systems

Upgrading safety systems enhances the security and safety of your property and residents. A modernised security system deters vandals and intruders, while updated fire alarms and sprinkler systems help mitigate fire risks, offering protection for your strata property.

3. Stay compliant with building codes

Compliance with current building codes mitigates risks by reducing the likelihood of building defects and accidents that could lead to costly claims. Staying up-to-date with local building regulations and ensuring your strata property meets all requirements is crucial. Periodically review your building’s safety and maintenance standards to avoid potential issues.

4. Manage Water Damage Risks

Water damage is one of the most common and costly issues in strata properties. To minimise the risk, consider implementing preventative measures such as regular plumbing inspections, roof maintenance, and gutter cleaning. Ensure that all common areas have adequate drainage systems to handle heavy rainfall. Additionally, encourage residents to report leaks or water-related issues promptly so they can be addressed before they escalate.

5. Adopt Smart Technologies

Incorporating smart technologies into your strata property can significantly enhance security and prevent potential issues. For instance, installing water leak detectors can help you detect leaks early and avoid costly water damage. Smart locks offer enhanced security by allowing you to control access remotely, while smart thermostats can optimise energy usage and prevent overheating. Smart garage doors provide additional safety and convenience by allowing you to monitor and control access. Embracing these technologies not only protects your property but also improves the overall living experience for residents.

We know that there’s always going to be some unavoidable accidents or damage, especially in a shared property. But because we’re experts in residential strata insurance, we can help to tailor your policy, so you’re confident that you have the right cover for your building.  

More information

Enhance Your Strata Property’s Safety to Minimise Risk

Implementing effective risk management strategies is crucial for maintaining the safety of your strata property and its residents, as well as reducing the potential of claims. Each state and territory mandates that strata title properties hold strata insurance, which provides essential coverage for common areas against accidental damage, including that caused by natural disasters like bushfires and floods. Additionally, residential strata insurance often includes liability coverage for personal injury, offering further protection for your property and its occupants.

Explore our residential strata insurance plan to safeguard your property from common claims.

^ Estimate based on CHU Assess claims.

CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFS Licence No: 243261) acts under a binding authority as agent of the insurer QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFS Licence No: 239545). Terms, conditions, limits and exclusions apply to the products referred to above. Any advice in this article is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before making a decision to acquire any product(s) or to continue to hold any product we recommend that you consider whether it is appropriate for your circumstances and read the relevant Product Disclosure Statement which can be viewed on this website or obtained by contacting CHU directly. 

FAQs About Strata Insurance Claims

1. What are the most common strata insurance claims?
Water damage, storms, accidental damage, legal liability, fire, and theft.

2. Does strata insurance cover water leaks?
Yes, sudden leaks are usually covered — but gradual wear and tear or poor maintenance may not be.

3. Who is responsible for fire damage in a strata building?
Strata insurance typically covers damage to the building and common areas. Owners may need contents or landlord insurance for what’s inside their lot.

4. What happens if a resident causes accidental damage in common property?
It may be covered by strata insurance, but the body corporate could recover costs from the responsible resident.

5. Does strata insurance cover theft from common areas?
Yes, strata insurance usually covers theft or vandalism in common property, such as gyms, BBQs, or shared storerooms.

6. How can a strata committee reduce its insurance premiums?
By proactively managing risks, maintaining the building, reducing claims history, and demonstrating good record-keeping to insurers.

Why Choose CHU?

Accidents and damage can’t always be avoided, but the right insurance helps protect your building and residents.

With over 45 years of expertise and thousands of strata claims managed each year, CHU is Australia’s leading strata insurance specialist. We’ll help tailor cover for your property so you’re confident you have the right protection.

 Find out more about CHU Residential Strata Insurance Plans.

CHU has always embraced environmental sustainability as a core pillar of our business. As part of our commitment to build a more sustainable and resilient strata community, we are pleased to release our FY24 Sustainability Impact Report, capturing the progress we’ve made from 1 July 2023 to 30 June 2024, towards our sustainability commitments and the future goal of full scope net-zero. 

Over the past year, we were honoured to receive the ANZIIF 20th Australian Insurance Industry Award for Excellence in Environmental, Social, and Governance Change. This recognition is a testament to our team’s dedication and the strides we’ve taken to reduce our environmental impact while enhancing the resilience of strata communities. 

A Closer Look at Our Sustainability Milestones in FY24 

• Builders Panel Initiative:

This year, we established a Builders Panel with 40 builders selected from over 90 companies, ensuring that each aligns with CHU’s sustainability vision. By partnering with builders who prioritise sustainability and are committed to the same goals, we have commenced the pathway towards achieving Scope 3 carbon emissions reductions and offsetting and championing the positive change across the strata industry. 

• Full Scope Net Zero Goals:

We’ve mapped our goals against the Insurance Council of Australia’s (ICA) Climate Change Roadmap, keeping us on track to meet and exceed industry set targets.  

• Continued to reduce and offset our scope 1& 2 emissions:

CHU has been Scope 1 & 2 carbon neutral for the past 4 years. We continue to make changes within our business such as transition to hybrid vehicles, choose green options when travelling and in our procurement of marketing collateral and planting trees with ForkTree in South Australia to offset any remaining carbon emissions.   

Sustainability Impact Report FY2024 

Our report tracks our progress and achievements in the FY24 period  Using the Global Reporting Initiative (GRI) framework, the report is structured into four key areas: Planet, People, Prosperity, and Partnership.  

Each section highlights our actions and progress across the organisation, based on data collected annually from all business units. This year’s report also integrates the Insurance Council of Australia (ICA) roadmap and continues to reflect our Sustainability CHARTER, which sets out our sustainability goals. 

Our customers are central to every decision we make, and building a better, greener and brighter future will benefit the whole community.  
 
We invite you to read our FY24 Sustainability Impact Report, this is a road we all must take, so we will continue to innovate and make positive changes that will lead us towards our net-zero goal. 

As an owners corporation or body corporate of a strata property, it is your shared responsibility to ensure that the physical property, including all the shared common areas is adequately insured.

Residential Strata Insurance covers owners for the shared or common areas of their property and is a mandatory insurance across most of Australia. A crucial first step is to understand the potential risks associated with underinsurance and the significance of obtaining accurate building valuations.

Strata properties, such as apartment complexes or townhouses, present unique challenges when it comes to insurance coverage. The cost to insure the building is shared between all the apartment owners, and if something unforeseen occurs, and your building is not adequately insured, then the replacement cost associated with repairs will become a shared burden of all the owners.

In our previous article, we outlined how the recent escalation of building material costs and inflation pressure has widened the gap between the current building sum insured and the actual cost of full replacement should a disaster strike.

If you haven’t had a building valuation or adjusted your building sum insured on your strata insurance policy in the past few years, then the chances of your building being underinsured is likely.

The role of building valuations

Building valuations play a crucial role in determining the appropriate level of insurance coverage for strata properties. A building valuation is an assessment of the property’s replacement cost, considering factors such as construction materials, labour costs, removal of building debris, professional fees and allowance for cost escalation over time. It provides an estimate of the amount of insurance coverage required to rebuild or repair the property in case of an unforeseen event.

In most states and territories in Australia, it is mandatory to obtain a building valuation every five years, but given the recent hikes in construction costs, it is strongly recommended to obtain a building valuation more frequently.

Why accurate building valuations are essential

Adequate Insurance Coverage: An accurate building valuation ensures that the insurance coverage matches the actual rebuilding or repair costs. It helps property owners avoid being underinsured, providing peace of mind in knowing that their property is adequately protected.

Fluctuations in the market for building materials and skilled trade’s people have seen many buildings at risk of being underinsured. Therefore, a detailed valuation will account for more than just the replacement value, they will factor increased building costs due to CPI increases, natural events and other disasters.

An accurate building valuation will assist owners by:

1. Reducing financial risk

Underinsurance can result in significant financial risk for strata property owners. If a disaster occurs and the insurance payout is insufficient, owners may be responsible for covering the shortfall.

2. Avoiding costly insurance disputes

Accurate building valuations can help prevent disputes with insurance companies over the adequacy of coverage. By having a professional valuation conducted and providing evidence of the property’s true replacement value, property owners can avoid potential conflicts during the claims process.

3. Complying with legal obligations

Owners corporations have a legal obligation to insure the building for the full reinstatement and/or replacement value.

What does an Insurance Valuation cover

A valuation of a strata building for a replacement cost assessment should

• Cover the cost of the buildings and common property
• Include external features and each lot’s permanent fixtures and improvements
• Include other factors including inflation, professional fees, cost escalations, compliance with regulations of building development at current standards, demolition, cost of external items (pavements, fencings, recreation facilities which are on-site) and lastly, the removal of debris.

How to obtain a building valuation

To obtain an accurate building valuation, strata property owners should consider the following steps:

• Engage a Qualified/Reputable Valuer: Hire a professional valuer experienced in strata property assessments. They will conduct an independent assessment of the building’s replacement cost, taking into account various factors such as location, construction type, and building regulations.
• Obtain more regular valuations: While the legal requirement states this should be undertaken every 5 years, it is recommended to undertake it at least every 2 years, especially in the current inflationary market.
• Review your building sum insured on your policy: Regularly review your insurance policies to ensure they align with the most recent building valuation. Consult with an insurance broker or your insurer directly to understand the coverage limits and any additional provisions that may be necessary for protection.
• Seek Expert Advice: Consider engaging a strata management company or insurance broker to assist in obtaining a professional valuation and updating your policy accordingly.

Strata property owners need to be proactive in addressing the risks associated with underinsurance. By conducting more frequent building valuations and updating their building sum insured, property owners can safeguard their investments and protect themselves from financial burdens in the event of damage or loss.

If you have a current CHU residential strata insurance policy and would like to check your sum insured, please feel free to contact us.

In the insurance industry, the true test of service comes when customers need it most, at the time of a claim. CHU’s claims team is often one of the first on the scene post claims event to assess the damage and make sure the site is made safe, and our customers are supported. The Dee Why mega storm was one such example of CHU’s commitment to delivering claims excellence. 

An unexpected storm that raised the roof of an apartment building  

In the lead-up to Christmas, a powerful storm cell devastated parts of NSW Northern Beaches. Among the hardest-hit properties were two CHU insured apartment buildings in Dee Why, where extensive damage left residents displaced and property owners facing significant losses. 

This was a defining moment for CHU’s claims team, demonstrating their ability to act quickly, support affected customers, and facilitate high-quality repairs to restore homes and stability. 

Rapid Response & Customer-Focused Service 

At CHU, every claim represents more than just a transaction, it’s about people, their homes, and their peace of mind. When the Dee Why storm struck, CHU’s emergency after-hours hotline was immediately activated, connecting property owners with professional support without delay. Chris Frazer, General Manager of CHU Services, and Senior Loss Adjuster Vince Tramonte were notified and on site to assess the damage and implement an action plan. 

Their priorities were clear: 

• Ensuring resident safety through immediate site inspections and coordination, working with emergency services. 
• Providing temporary accommodation for displaced residents during the holiday season. 
• Maintaining transparent communication with Strata Managers and Insurance Brokers to keep policyholders informed. 

Beyond Repairs: Rebuilding Confidence 

CHU’s commitment to high-quality repairs is upheld by CHU’s panel of trusted builders and repairers. Engaging trusted builders means that CHU can coordinate complex repairs efficiently while mitigating buildings against future extreme weather events. 

The Dee Why case study demonstrated CHU’s ability to navigate challenges while maintaining a focus on exceptional service and long-term solutions. The customer feedback received by CHU after the claim was complete highlighted the positive outcome for our customer:

“A severe storm cell caused significant damage to my top-floor apartment in Dee Why and blew the entire roof off our apartment block. Fortunately, no one was hurt, and my tenanted apartment was covered by CHU strata insurance.

Vince from CHU demonstrated care and consideration during the lengthy and complex remediation, keeping me informed, and being patient with all the owners.

CHU covered for loss of rent during remediation. The finished product was of outstanding quality, allowing me to increase my rental income. I love it so much that I plan to move back in one day. “

Why CHU’s Claims Team Stands Out 

When the unexpected occurs, CHU customers can rest assured they will have the support they need. With a focus on expertise, empathy, and efficiency, CHU continues to set the standard for strata insurance claims, proving time and again that they are there when it matters most. 

Read more about this case study and other real-life examples of CHU’s claims expertise in action. 

Leading strata insurance specialist CHU has again won the Underwriting Agency of the Year Award at the Australian Insurance Industry Awards after taking out the award in 2021 and 2022. This award recognises an Australian underwriting agency that has demonstrated excellent technical skills, strong underwriting results and outstanding customer service.

“This win is validation of our strategic direction and efforts to lead the industry. We are truly humbled to receive this prestigious award once again.”

CHU CEO Kimberley Jonsson

“We are all extremely proud of what we achieved in 2022. It was a massive year of growth, development, innovation and importantly, giving back to our people and our community.”

The Judges remarked that CHU stood head and shoulders above an already excellent field of contenders, with its best practice approach to people development, industry contribution and strong focus on community work and environmental strategy. CHU was highly commended for its improvements to its services including a dedicated catastrophe response team and technology enhancements. Additionally for its sophisticated education and training programs for brokers and strata managers, its CHUniversity L&D initiative for internal staff, and the company’s FUCHURE CHU initiative. The judges also applauded CHU for its continued efforts to offset emissions, including building a 60 per cent electric or hybrid fleet and funding the planting of trees.

“We intend to continue as thought leaders within our industry, through sustainable business practices, innovation and collaborative partnerships. The future is bright for CHU, and we will continue to act with integrity, build strong relationships and work towards a sustainable future for the whole community.”  

For further information and media enquiries contact us.

Apartment ownership is on the rise, it is often a great entry point for first home buyers as well as first time property investors. One consideration new owners and investors need to consider is building defects. Whether it is a new build, or you are purchasing into an existing building, defects can arise, and it’s crucial to be aware of them and address them as soon as possible to prevent long-term damage and avoid costly repercussions.

The following article outlines some of the common defects found in apartment complexes. It is important for owners to be aware of what to look out for, and the questions to ask to ensure they have all the details to make informed decisions.

1. Building Fabric

Common defects in the building fabric include efflorescence, peeling paint, and minor settlement cracking. While these may not be immediate causes for concern, if left unattended, they can lead to more significant issues.

2. Cladding

Non-compliant lightweight cladding, such as aluminium composite panels or ACP and EPS, is a common issue in strata buildings. This type of cladding can cause a greater potential for fire to spread quickly in a building.

3. Waterproofing

Waterproofing issues can also cause significant problems, such as leakage from roofs, mould, blistering paint, rising damp, and cracked walls. If left unattended continued water penetration into concrete structures such as balconies can lead to concrete cancer, which rusts the steel within the concrete.

4. Plumbing

Plumbing and drainage issues such as blocked drains, leaking pipes, and sewage backups, can cause significant damage to the building’s structure and pose health risks to residents.

5. Electrical

Electrical issues, such as faulty wiring, can lead to power outages, electrical shocks, and fires, all of which can cause significant damage to the building’s structure and endanger residents.

6. Roof Coverings

Defective roof coverings, caused by poor installation, inadequate materials, or poor maintenance, can lead to water leaks and structural damage, ultimately affecting the building’s value and insurability.

Defects can impact Strata insurance policies, which are designed to cover property damage and liability claims. Most insurance policies exclude cover for buildings with defects within the property damage section of the policy however, exposure to claims under the liability section of the policy remains a concern. Note, that in many cases your building can still be insured with defects, as long as you have fully disclosed the information and taken actions to remediate the defect, the insurer will take into account the age of the building and location among other factors and assess the risk of insuring the building. Defects may result in higher premium or excess to cover the building, and some insurers may in fact deem the building to be too risky to provide the cover.

Building defects can cause significant risks and should be addressed as soon as they are discovered.

At CHU, we recommend utilising reputable builders and developers to reduce the risk of defects, and it is crucial to ensure proper maintenance and remediation should defects be discovered post purchase, or midway through a policy cover.

Defects will impact a building’s value and insurability; it is essential to take action to address defects and maintain the safety and value of your property.

CHU Services has recently launched a new AI powered inspection service, CHU Inspect, which can assist owners, strata managers and brokers to identify defects, and monitor the overall building health. Contact us to learn more about CHU’s latest services.

Once again, Brokers across Australia have voted CHU Underwriting Agencies the top award for Strata Cover in the annual broker survey conducted by Insurance Business Magazine.

This will be the fifth time that CHU, has been awarded the gold medal for these awards.

CHU CEO Kimberley Jonsson said:

CHU, one of Australia’s largest and most awarded underwriting agencies has been in the strata insurance business for over 40 years. Winning this award is further confirmation of the importance brokers place on specialist knowledge when it comes to working with underwriting agencies.

Click here for the Insurance Business Magazine feature.

For further information and media enquiries contact us.