ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria

In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects cost Australians an estimated $1.3 billion annually. Poor governance and deferred maintenance are transforming insurable buildings into high-risk liabilities, leading to higher premiums or, in some cases, rendering properties uninsurable.

The ICA's recommendations include enhancing transparency and accountability within owners corporations, providing better education resources for committee members, and ensuring full disclosure of any payments to strata managers that could influence insurance product selection. These measures aim to improve risk management and financial oversight within strata communities.

By implementing these reforms, the ICA believes that Victoria can address the root causes of rising insurance costs and ensure that strata residents have access to affordable and comprehensive coverage.