Strata Insurance in 2025: What Every Owners Corporation Needs to Know

Why now is a critical time for strata cover

For many apartment blocks, mixed-use strata schemes, and large residential or commercial properties, the insurance landscape is changing. Here’s what your committee and lot owners should know when arranging or renewing strata insurance this year.

Market Trends - Strata Insurance

1. Premiums beginning to stabilise

After several years of steep increases, strata insurance premiums are starting to level out. For well-maintained buildings in lower-risk areas, renewals are showing signs of moderation. However, properties with building defects or in disaster-prone regions may still face higher premiums and excesses.

2. Underinsurance is still a major concern

Many strata schemes have not updated their building valuations recently, meaning their current sums insured may not reflect real rebuild costs. This can leave owners exposed to shortfalls in the event of a total loss.

3. New and emerging risks

Insurers are paying closer attention to issues such as defective cladding, fire safety compliance, and waterproofing. Mixed-use buildings with high-risk tenancies are also under scrutiny, as are schemes installing EV charging infrastructure.

4. Transparency and disclosure matter more than ever

Insurers expect full disclosure of claims history, building works, and maintenance records. Strata committees that provide complete information and demonstrate strong risk management are more likely to secure competitive terms.

What Your Strata Committee Should Do

1. Start early

Begin the insurance review process well before renewal to allow time for accurate information gathering and competitive quotes.

2. Update your building valuation

If your last valuation was more than three years ago, arrange a new one to ensure the sum insured aligns with current rebuild costs.

3. Address known defects

Repair and document issues such as leaks, cladding, and fire systems. Demonstrating proactive maintenance can lead to better insurance outcomes.

4. Disclose everything

Provide your broker with full details of claims, tenancies, and building works. Transparency builds trust and can improve insurer confidence.

5. Review your policy wording

Make sure your policy covers the correct value and includes relevant extensions—such as for EV chargers, machinery breakdown, and temporary accommodation.

Why Choose Clarke Lyons Insurance Brokers

At Clarke Lyons, we specialise in strata insurance tailored for NSW Owners Corporations, mixed-use developments, and major residential towers.

We:

• Stay ahead of the latest strata insurance trends and market movements.

• Help committees prepare risk documentation and present their building in the best light.

• Advocate for fair terms and transparent cover that fits the unique needs of each scheme.

• Offer personal service and ongoing advice throughout the policy year, not just at renewal.

Final Word

The strata insurance market in 2025 offers opportunities for well-prepared committees to secure stable pricing and improved coverage. The key is preparation, disclosure, and the right broker partnership.

If your scheme is due for renewal or you’re unsure whether your cover reflects your building’s true value and risk, speak with Clarke Lyons Insurance Brokers today. We’ll help you navigate the market and secure peace of mind for every lot owner.

Strata insurance