Strata insurance premiums continue to rise at an alarming rate, creating headaches for owners and strata managers – especially where combustible cladding is concerned.

A quarterly report by Honan Insurance Group¹ has found that strata premiums continue to increase nationally by approximately 15 to 20%.

This increase is further compounded for buildings with combustible cladding or outstanding defects. Deemed as ‘high hazard’ properties with ‘limited options’ available for insurance, premium increases are both volatile and unpredictable.  This uncertain outlook prompted Honan to state “… we may need to explore international insurance markets where premium increases of over 100% are common.”

The Insurer has made clear recommendations to the sector.

“This means it is essential for strata managers and owners to work closely with their insurance broker, taking a proactive approach to address any existing issues and providing regular and detailed updates to help secure local coverage.”

Understandably, strata decision makers have a range of concerns: ‘Where should I start? How can I control cost? Who should do the work?’

Paynter Dixon is recognised as a tier 1 service provider for remedial building services. The Remedial division works closely with strata managers, building owners and owners corporations to create compliant solutions for impacted buildings.

Our 5 stage process

1. Risk profiling
   A visual assessment of the building and gauging risk factors in re-cladding.
2. Detailed investigation
   This involves peeling back a section of the building skin to assess underlying materials and potential sub-structure issues. This avoids nasty – and costly – surprises later in construction.
3. Planning
   This seamless ‘back of house’ coordination spans design and documentation, compliance, cost planning and contractor engagement.
4. Authority approvals
   This can include lodging a Development Application, Complying Development Certificate, or meeting the requirements of a Fire Order.
5. Construction
   The site team manages work on site with minimal disruption to building occupants. Accreditation with the Federal Safety Commissioner also underpins safety on site.

Learn more about Paynter Dixon’s specialist remedial services for strata clients.

Tim Kurniadi, Sector Lead – Remedial

tim.kurniadi@paynterdixon.com.au

¹ F23 Q4 Market Update, 1 August 2023