Strata Companies to be Vigilant of Rising Costs

Along with homeowners, strata managers should also be aware of rising inflation and check when their building sum was last updated. If it has been more than 12 months, it’s strongly recommended to obtain a new valuation.

Next, strata owners need to look at what level of indexing applies to the sum insured on the renewal, to ensure they are not falling behind in their insurance.

It’s also important to note that the cost of construction has risen roughly 18% over the past 18 months, which is significantly outpacing the rise in CPI, which has only gone up to about 5%.

“If you manage a strata then you need to make sure you’re covered for full replacement and reinstatement value, as well as any removal costs and professional fees,” says Jody.

“The price of these rising construction costs needs to be taken into account when reassessing your insurance policy.”

0/5 (0 Reviews)

General Advice Warning

This blog post contains general information only. It does not take into account your objective, financial situation or need. Please consider the appropriateness of the information in light of your personal circumstances.

Jody Williams

Jody Williams

Jody Williams is the perfect broker to select the right insurance on your behalf, saving you time and money. And the best part is – she works for you, not the insurance companies.

Leave a Comment

Your email address will not be published. Required fields are marked *

Call Now Button