Top Strata Insurance Claims in Australia and Proven Prevention Strategies

Securing comprehensive strata insurance is essential to meet legal requirements across Australian states. Opting for the cheapest policy might leave you underprotected when claims arise.

Key common claims include: Leaks and water damage, severe weather (storms and floods), accidental damage, legal liability, fire damage, and theft, vandalism, or malicious damage.

Protecting the building, common property, owners corporation, tenants, staff, and visitors falls under the strata committee's duties, including securing suitable strata insurance.

Tailoring coverage to your building's unique needs—from size to occupancy—often involves consulting your community manager. Compare quotes from specialist insurers for the best fit.

According to CHU, a leading strata insurance provider, claims are commonplace—not hundreds, but thousands involving vandalism, break-ins, floods, storms, fires, and legal issues. The good news? Most are preventable. Here are CHU's expert tips to sidestep these frequent, expensive claims:

Leaks and Water Damage

Water damage tops the list, making up 45% of strata claims. Burst pipes, overflows, or roof issues can be tricky to trace, but modern tools minimize invasive repairs.

Spot risks early by checking:

• Flexi hose clamps: Verify warranty dates and inspect for damage on shared and lot appliances like washing machines, dishwashers, and water filters.
• Roofs and gutters: Clean regularly and watch for cracked tiles, rust, or blockages.
• Water bills or pressure fluctuations: Hidden leaks in walls or garden reticulation could be culprits.
• Walls and ceilings: Look for blisters, stains, or discoloration.
• Dripping taps: Fix immediately, especially during filling.
• Turn off taps before long absences.

Severe Weather: Storms and Floods

Australia's climate brings beauty and peril—storms drive 25% of annual claims. Prepare by:

• Storing valuables away from flood-prone areas.
• Pruning overhanging trees and branches.
• Clearing gutters and balconies for proper drainage.

Monitor forecasts during events and ensure tenants and neighbors are safe.

Accidental Damage

Prevent mishaps through diligent maintenance, cleaning, and clearing common areas. Maintain gardens without damaging underground services—call Dial Before You Dig (free service) at www.1100.com.au or visit their site. Always hire professionals for repairs and installs.

Legal Liability

Rare but expensive, these cover accidents where negligence leads to:

• Property damage in common areas.
• Injuries, fatalities, or lost income.
• Errors by officials like committee members.

Minimize risks: Stay vigilant, act on hazards promptly, and alert your manager or committee.

Fire Damage

Essential fire safety gear must be tested regularly. Maintain appliances and address wiring issues swiftly. Common fire starters:

• Faulty wiring or aging appliances like dryers.
• Lint buildup in dryers and washers.
• Overheated kitchen appliances, hot plates, or pans.
• Unattended candles or incense.
• Cigarettes on balconies or indoors.

Theft, Vandalism, and Malicious Damage

BBQs, gym gear, and garden items are prime theft targets due to easy access. Break-ins often lead to window, door, or lock claims.

Deterrence tips:

• Know your building's residents to spot outsiders.
• Question unfamiliar faces.
• Install smart locks on garages and gyms.
• Secure doors during deliveries or moves.

CHU recommends security cameras, intercoms, and motion lights—initial costs pay off in safety and lower premiums.

Conclusion

Follow these strategies to dodge costly claims. Questions on your strata insurance? Reach out to your community manager.