Effective April 1, regulatory updates to the Cyclone Reinsurance Pool now allow strata buildings in eligible regions to receive insurance premium reductions when undertaking approved mitigation activities. These activities include structural reinforcements such as storm-resistant windows, upgraded roofing, and compliant external doors.
Syna Hickmott, Insurance Manager at MAI Strata, highlighted the benefits of these reforms, stating, "This is exciting news for Queensland strata owners. Many buildings are facing skyrocketing insurance costs, and this initiative provides a clear financial incentive to strengthen their properties. Stronger buildings mean fewer claims, and fewer claims mean lower premiums."
In conjunction with these regulatory changes, the $40 million Strata Resilience Program has been launched, jointly supported by the federal and Queensland governments. The program provides grants covering up to 75% of the costs for cyclone mitigation measures, with limits set at $15,000 per residential lot and $150,000 per strata scheme. Funding is shared across all stakeholders:
- The federal government contributes 50%.
- The state government contributes up to $20 million (25%).
- The remainder is covered by property owners.
Hickmott noted that past programs of this nature have stimulated regional employment through demand for local contractors and building services. "The Strata Resilience Program will help reduce the risks of cyclone damage, making buildings safer while also putting downward pressure on insurance premiums," she said.
Strata property owners are encouraged to assess their buildings' current resilience to cyclones and consider applying for these programs. By investing in approved mitigation measures, owners can not only enhance the safety and durability of their properties but also achieve substantial savings on insurance premiums.
To participate, property owners can:
- Review the eligibility criteria for the Cyclone Reinsurance Pool and Strata Resilience Program.
- Consult with qualified professionals to identify appropriate mitigation measures for their buildings.
- Apply for grants and funding assistance through the relevant government channels.
- Implement the approved mitigation measures within the stipulated timelines.
By proactively engaging with these initiatives, Queensland strata owners can contribute to a more resilient community while alleviating the financial burden of high insurance premiums.
