CHU's 2025 Report Shows Stability in Strata Insurance Premiums
Understanding the Modest Increase and Its Implications for Apartment Owners
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CHU, Australia's leading strata insurance underwriting agency, has released its 2025 State of the Strata Market report, providing a comprehensive analysis of the current state of the industry.
The report indicates that strata insurance premiums have experienced a modest increase of 2.8%, rising from an average of $954 to $981 per lot annually in the year leading up to June 2025.
This increment is notably lower than the 14% surge observed in house insurance premiums during the same period.
CHU attributes this relative stability to the unique risk profiles associated with strata properties compared to standalone houses. Factors such as shared maintenance responsibilities and structural differences contribute to the more controlled premium adjustments in the strata sector.
Despite the challenges posed by recent weather events, including cyclones and widespread flooding, the strata insurance market has demonstrated resilience. The Australian Reinsurance Pool Corporation's (ARPC) September 2025 review confirmed that premiums for strata properties would remain unchanged, affirming the adequacy of current pricing structures.
Regulatory developments have also played a role in shaping the strata insurance landscape. Reviews in New South Wales, Western Australia, and the Australian Capital Territory are introducing new requirements aimed at enhancing transparency, consumer protection, and professional standards within the industry.
For strata property owners, this report offers reassurance that, despite external pressures, the affordability of strata insurance remains intact. It underscores the importance of proactive property management and staying informed about industry trends to ensure continued financial stability and compliance with evolving regulations.
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