Premiums for stratas in Queensland are under pressure. Increases of 15-20 % are being observed, driven by factors such as rising building valuations, inflation in repair/maintenance costs, more frequent natural-hazard events, and insurers becoming more cautious.

Insurance is mandatory in many respects but there are practical steps a committee can take to reduce premiums.

This article sets out those steps, highlights what must be insured vs what may be optional, and addresses common (but risky) suggestions.

What Must Be Insured in QLD & What You Should Check

Before you focus purely on cost-cutting, you need to understand your baseline obligations:

• Queensland, every body corporate is legally required to hold compulsory strata insurance. This includes cover for the building structure and common property as outlined under state legislation.

• Beyond these mandatory policies, there are also optional covers that can be removed, such as or office bearers protection, for example which can be tailored to suit the specific needs and risk tolerance of each property.

• It is important to ensure your building’s sum insured reflects an accurate replacement value. Under-insuring can leave owners financially exposed if a major loss occurs, while over-insuring can inflate premiums unnecessarily.

• Factors such as proactive maintenance, absence of structural defects, risk-mitigation measures, and a strong claims history can all strengthen your position when negotiating premiums. A well-maintained property not only enhances safety but can also lead to more competitive strata insurance pricing.

Strategies to Reduce Premiums

Here are practical strategies that your scheme’s strata committee can adopt.

1. Improve the building’s maintenance and reduce risk

Regular Roof and Gutter Inspections

Blocked gutters and damaged roofing are common causes of water ingress and insurance claims. Schedule bi-annual inspections, especially before storm season, to identify leaks, cracked tiles, or rusted sections early.

Maintain Plumbing and Hot Water Systems

Burst pipes and faulty hot water systems are among the most frequent strata claims. Have a licensed plumber inspect shared plumbing annually, and encourage lot owners to replace aging flexi-hoses before they fail.

Fire Safety and Electrical Compliance Checks

Ensure fire alarms, extinguishers, and emergency lighting meet Australian Standards. Conduct periodic electrical safety inspections to identify outdated wiring or overloaded circuits that could cause fire damage.

Pest Control and Termite Management

Implement a regular pest control program to prevent termites, which can cause extensive structural damage not always covered by insurance. Keeping detailed inspection records also demonstrates proactive maintenance to insurers.

Structural and Facade Maintenance

Inspect external walls, balconies, and waterproofing membranes for cracks or deterioration. Timely repairs reduce the likelihood of costly structural or water-damage claims and improve the building’s overall risk rating.

Common Area Upkeep and Safety Measures

Keep pathways, carparks, and stairwells well lit and free of hazards. Installing non-slip surfaces, handrails, and signage can minimise liability risks and improve your property’s insurability profile.

Undertake risk-mitigation works

Reinforce Roofing and Windows in Cyclone-Prone Regions

In Queensland’s coastal zones, upgrading to cyclone-rated roofing materials, securing roof tie-downs, and installing impact-resistant windows or shutters can help prevent major storm damage and lower insurance costs.

Upgrade Fire Safety Systems

Install modern smoke alarms, sprinkler systems, and fire doors that comply with the latest Australian Standards.

Improve Drainage and Water Management

Ensure gutters, downpipes, and drainage systems are clear and effective to prevent water ingress and flood-related claims. Installing sump pumps or raising electrical systems in flood-prone basements can also reduce risk exposure.

Replace High-Risk Materials

Identify and replace combustible cladding, outdated wiring, or deteriorating plumbing materials that increase the likelihood of fire or water damage claims.

2. Review Your Policy Setup and Coverage

The way your strata insurance policy is structured can make a big difference to your premium. A few smart adjustments can help lower costs without compromising on essential protection.

Increase Your Excess

Choosing a higher excess (the amount you pay if you make a claim) can reduce your annual premium. This approach suits well-managed buildings with a solid maintenance record, minimal claims, and healthy sinking funds to cover minor repairs when needed.

Reassess Optional Cover

Not every add-on policy is essential. Review your existing coverage and consider removing optional extras that don’t apply to your building’s situation. For example, some liability or committee-related covers may not be necessary if your scheme doesn’t have those exposures. However, make sure any changes comply with Queensland’s legal insurance requirements, removing compulsory cover could leave your body corporate non-compliant or financially exposed.

Check Your Building Valuation

Premiums are directly linked to your building’s insured value. If your property is over-valued, you may be paying more than you need to. Arrange a professional valuation every few years to ensure your insurance reflects the true rebuilding cost, not an inflated estimate. Just remember: under-insuring can be just as costly in the long run if a major claim occurs.

3. Manage Claims Wisely

Your claims history is one of the biggest factors influencing your premium.

Avoid Small, Frequent Claims

Whenever possible, handle minor repairs through the body corporate’s maintenance budget rather than lodging small insurance claims. A high frequency of minor claims can make your building look higher-risk to insurers, driving future premiums up.

Promote Preventative Maintenance

Encourage all owners and residents to take responsibility for upkeep inside their lots such as replacing worn washing machine hoses or fixing minor leaks promptly. Preventing water damage and similar issues helps protect common property and keeps your scheme’s claims record clean.

What to Check Carefully (and What’s Risky)

There are some suggestions that appear often but must be treated with caution:

Not insuring for certain covers (e.g., “office bearers liability”) because you don’t have a committee:

• First check: Does your legislation or regulation require such cover? If so, you cannot remove it.
• If not required, then you may consider whether your scheme’s risk exposure justifies the cover or whether it is prudent to omit it. But removing liability cover because “we don’t have a committee” might expose the scheme to risk if a committee is formed or individual office-bearers act (and hence liability arises). You need to assess the risk carefully and seek professional advice.

Not insuring for flood insurance:

• Be very cautious. If your building is in a flood-prone area (coastal/river/flood plain), omitting flood cover may expose owners or lot holders to large loss. Some policies may exclude flood or treat flood differently, you must check the policy wording.
• Many insurer increases are due to natural hazard exposures; one way to reduce premiums is mitigation, not necessarily removal of cover. Also, note that omitting flood cover may affect resale value or financing.

Under-insuring the building (i.e., choosing a lower sum insured than replacement value):

While reducing the sum insured may lower premium, under-insuring can lead to serious problems, if there is a large claim and the insured sum is insufficient, the body corporate may have to top up. Good practice is to have the building professionally valued, and update regularly.

Summary Checklist for the Committee

• Get a recent building replacement valuation.

• Ensure you understand what covers are compulsory vs optional for your scheme

• Work with a specialist broker who can get multiple quotes and negotiate.

• Implement a maintenance and risk mitigation plan

• Consider higher excesses or selective cover removal

• Avoid making small claims if possible.

• Owners should understand what is being insured, how premium is calculated, what commissions/fees are included.

Partner with a Specialist Broker Like Morgan Insurance Brokers

Navigating strata insurance can be complex, especially when balancing mandatory coverage requirements with the need to control premium costs. This is where working with an experienced, strata-focused broker such as Morgan Insurance Brokers can make a significant difference.

Morgan Insurance Brokers specialise in residential and commercial strata insurance across Queensland and understand the nuances of local legislation, building risk profiles, and insurer appetites. Their team can:

• Compare quotes across multiple insurers to ensure you’re receiving the most competitive premium available.

• Review your current coverage to identify unnecessary add-ons or gaps that could leave your scheme under- or over-insured.

• Negotiate with insurers on your behalf, leveraging long-standing relationships and specialist knowledge to achieve fairer pricing and broader cover.

• Provide transparent advice around commissions, fees, and policy structures, helping committees make informed decisions with full confidence.

By partnering with a broker that genuinely understands strata insurance your body corporate can secure more tailored protection, better pricing, and the peace of mind that comes from expert guidance.

Final Thoughts

Lowering your strata insurance premium isn’t about cutting corners, it’s about being proactive and strategic. The goal is to make your building as safe, well-maintained, and low-risk as possible, so insurers view it more favourably. That means focusing on preventative maintenance, keeping your building in good condition, and making sure your insurance policy accurately reflects your needs, not paying for extras you don’t require.

While broader factors like natural disasters, rising construction costs, and inflation can push premiums up across Queensland, there’s still a lot within your control. A well-managed body corporate, with regular maintenance, a clean claims record, and the support of a specialist strata insurance broker like Morgan Insurance Brokers, will always be in a stronger position to negotiate fair pricing and secure quality protection.