A health check – and remedy – for ailing strata buildings

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As strata properties age and climate risks intensify, sector pioneer CHU is expanding beyond traditional coverage to help communities prevent problems before they emerge

ALMOST ONE in three strata properties across Australia isn’t checked for maintenance issues at least once a year. Lower-value properties are twice as likely to be poorly maintained as their premium counterparts. Drawn from CHU’s inaugural Strata Index of 1,000 owners nationwide, these numbers point to an ownership model under pressure, where rising density and climate risk are colliding with patchy upkeep and increasing pressure on professional strata managers. Australia’s largest city provides an object lesson: more than half of Sydneysiders are expected to live in strata by 2040; the question is no longer how to administer these communities but how to keep buildings liveable, resilient and valuable over the coming decades. “We’re seeing a disconnect between what strata managers do and what owners understand about their role,” says Kimberley Jonsson, chief executive at CHU. “There’s an opportunity to better communicate the positive impact strata managers have on property maintenance and long-term resilience.” The research found that only 29% of lot owners believe their strata managers always act in their best interests, while 35% think managers prioritise their own goals. The sentiment is particularly pronounced in smaller schemes, where 39% hold negative views compared to just 24% in larger properties. Jonsson attributes much of this scepticism to poor communication rather than poor performance. “Strata managers have the opportunity to turn this perception around by communicating their duties and the importance of well-managed properties to owners,” she explains.

Since creating the first strata plan insurance policy in 1978, CHU Underwriting Agencies has grown into Australia’s largest strata insurance specialist. CHU strata insurance covers approximately 1 million apartments, units, villas and townhouses across Australia. CHU also offers Commercial Strata Insurance, Contents Insurance and Landlords Insurance for strata property owners. Learn more at chu.com.au.

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Perceptions of strata property maintenance

Perfectly maintained

“A healthy building is somewhere people can live, work and enjoy their daily lives, creating a stronger sense of ownership and community”

Kimberley Jonsson, CHU

In CHU’s view, these attitudes and inspection gaps are not just administrative problems. They are also early signs that buildings are being managed episodically rather than through a planned care regime. CHU’s response goes well beyond traditional insurance. The company’s 2030 strategy centres on healthy buildings, properties characterised by engaged owners, proactive maintenance, embedded risk management and strong community connection. “A healthy building is somewhere people can live, work and enjoy their daily lives, creating a stronger sense of ownership and community,” says Jonsson. “Maintenance goes beyond basic upkeep. It includes planned improvements that enhance functionality, safety and long-term value.” The strategy comprises four interlocking elements: core strata insurance products, preventative maintenance to identify vulnerabilities early, building resilience to enhance safety and market value, and risk management to help communities prioritise investment decisions. In practice, it asks strata communities to move from reactive care to something closer to a regular check-up, with diagnostics, treatment plans and a follow-up schedule.

To support this approach, CHU recently launched Building Resilience Services, which uses lidar and drone technology to create high-resolution digital models of strata buildings. The inspection-grade virtual assets improve safety and accuracy while reducing the environmental footprint of traditional site visits. “We’re providing affordable risk reporting so bodies corporate can spend money on their building, not on expensive reports,” Jonsson adds. “Then we provide risk management plans with scopes of work so owners can make informed decisions.” In other words, diagnosis and treatment are being brought together so committees can clearly see what their building needs, when they need it and what each option might mean for risk, liveability and cost.

Building health, in CHU’s framing, also includes environmental performance and social outcomes, not just concrete and waterproofing. The company’s new Green Grant Program takes the concept further, offering up to $50,000 in total grants to support sustainable initiatives across residential strata buildings. Individual grants of up to $10,000 are available to CHU policyholders who have maintained coverage for at least three consecutive years.

Street view of modern apartment buildings

Shifting from reaction to prevention

Making sustainability accessible

Published 23 Feb 2026

“Strata insurance is more affordable than home insurance because it covers multiple units under a single policy”

Kimberley Jonsson, CHU

Very well maintained, with only 1–2 improvements needed

Well maintained, with some improvements needed

Somewhat maintained; several areas require attention or improvement

Not well maintained at all; significant issues and improvements are needed

Unsure

Source: CHU 2025 Strata Index

18%

30%

27%

13%

House vs strata insurance costs

Source: CHU; Canstar

Location

House insurance costs

Strata insurance costs

Weekly income in state

House insurance premium

Affordability index

Weekly income in state capital

Strata insurance premium

Affordability index

QLD

VIC

NSW

TAS

$1,790

$2,064

$2,173

$2,214

$2,448

$1,596

$1,933

$3,166

$2,299

$2,224

$2,613

$2,155

1.3 weeks

1.8 weeks

1.2 weeks

1.1 weeks

1.7 weeks

$1,483

$1,867

$1,962

$1,821

$2,284

$1,261

$842

$995

$920

$1,085

$1,176

$765

0.6 weeks

0.5 weeks

0.6 weeks

0.5 weeks

0.6 weeks

“We want to empower bodies corporate and property owners to implement sustainable initiatives that reduce their environmental footprint and improve energy efficiency,” says Jonsson. “This program addresses a gap in Australia’s strata sector by removing barriers that prevent properties from accessing sustainability upgrades and incentivising sustainability planning.” The initiative builds on CHU’s existing sustainability commitments, detailed in its latest Sustainability Impact Report. The company has maintained Scope 1 and 2 carbon neutrality since FY2019, offsetting operational emissions through a partnership with the Forktree Project. In FY2025, operational emissions fell from 584 to 466 tonnes of CO2 equivalent, helped by reductions in air travel and petrol vehicle use. CHU has also established a Supplier Code of Conduct setting environmental, social and governance standards across its supply chain, with 98% of suppliers now signed on. The company’s fleet is made up of 95% hybrid vehicles, with a target of 100% by year’s end. For strata communities, these moves are part of the same story. A healthier building is supported by partners who pay attention to their own operational impact, governance and social setting, not just to pricing risk from a distance.

CHU’s 2025 State of the Strata Market report, released alongside the Strata Index, provides context for why affordability remains central to discussions of building health. While inflation has eased, households continue to feel pressure from elevated living costs. Strata insurance premiums rose 2.8% in the year to June 2025, from $954 to $981 per lot, which is below household income growth of 3.4%. The contrast with house insurance is pronounced. Premiums for standalone dwellings jumped 14% over the same period, reflecting their greater exposure to bushfire, flood and climate-related risks. “Strata insurance is more affordable than home insurance because it covers multiple units under a single policy,” Jonsson explains. “When insurance providers assess risk and spread costs across five, 50 or 100 lots, this provides natural cost efficiencies that individual house policies cannot match.”

Understanding the economics

Apartment buildings also typically feature shared fire safety systems, with 24/7 monitoring, multistorey concrete construction with sprinkler protection, and less exposure to bushfire risk due to urban locations. For owners, that cost story goes beyond a simple comparison with detached houses. It underlines the economic case for keeping a building in good shape. Shared systems, robust construction and regular upgrades do more than protect residents. Over time, they help contain insurance costs, support valuations and reduce the likelihood of sudden special levies that can strain household budgets.

Potential regulatory changes are also reshaping the sector. A possible ban on insurance commissions for New South Wales strata managers – with potential uptake in other states – could alter how services are structured and paid for. “The potential ban does not impact CHU’s business model,” Jonsson says. “We provide both options: net rating and commission.” While premiums would fall under such a ban, the services provided by strata managers would still need to be paid for. “Any reduction in commission income would likely be offset by the introduction of fees for service paid directly by the owners’ corporation,” Jonsson explains. In that sense, regulatory change becomes another lever in the health plan. The more clearly owners can see what they pay for and where savings can be reallocated, the easier it is to justify routine inspections, planned works and energy upgrades that reduce both risk and operating costs.

Regulatory change and building health

The CHU Strata Index found that convenience drives broker selection, with the top three reasons relating to paperwork management and ease of use. Combined with the finding that half of respondents agree that strata insurance is complex, this underscores brokers’ role in demystifying coverage. To support brokers, CHU has introduced Indicative Pricing, a fast, non-binding price guide offering immediate visibility into premium estimates before referring risks to underwriting. The company has also increased its single risk capacity to

The broker’s evolving role

$690 million, up from $300 million, and this applies to both residential and commercial strata properties. “The findings reveal the value of strata professionals who can educate, build trust and guide decision-making, especially when it comes to communicating the long-term value of property maintenance,” Jonsson says. In practice, that means helping committees see the links between maintenance, claims history, risk reports and insurance terms. A broker who can explain how a roof replacement, facade rectification or fire system upgrade may influence risk appetite and pricing is not only easing the administrative burden but reinforcing the idea that every planned improvement is another step towards a healthier building.

Looking ahead, Jonsson sees clear distinctions emerging between strata communities that thrive and those that struggle. “Over the next decade, the communities that remain healthy and future-ready will be those that shift from a reactive mindset to a planned, preventative one,” she says. “They will invest early in understanding their buildings, using regular condition assessments, data and expert advice to identify risks and build resilience before disaster strikes.” Rather than deferring maintenance to manage short-term costs, thriving communities will prioritise timely works that extend asset life and improve property values. Strong governance will be a differentiator, with engaged committees, transparent decision-making and clear long-term capital plans aligning owners, managers and advisers. “These communities will actively manage risk and resilience,” Jonsson adds. “They will factor in climate exposure, building standards, compliance obligations and insurance implications as part of everyday decision-making, not after a loss event.” By combining preventive maintenance, resilient design and appropriate strata insurance, healthy communities will be better protected against severe losses, more attractive to insurers and more financially stable.

Future-ready communities

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