In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects in residential apartments are costing Australians an estimated $1.3 billion annually. Poor governance and deferred maintenance are transforming insurable buildings into high-risk liabilities, leading to higher premiums and, in some cases, rendering properties uninsurable.
The ICA's recommendations for reform include enhancing transparency and accountability within owners corporations, providing better education resources for committee members, and enforcing stricter maintenance regimes. These measures aim to improve risk management practices and ensure the long-term sustainability of strata properties.
Additionally, the ICA emphasizes the importance of collaboration among government bodies, insurers, brokers, and other stakeholders to address the challenges facing the strata sector. By implementing these reforms, the ICA believes that insurance affordability can be improved, and the overall resilience of strata communities can be strengthened.
As the review of Victoria's strata legislation progresses, it is crucial for property owners, strata managers, and investors to stay informed about potential changes and consider how they may impact their responsibilities and financial obligations. Proactive engagement with these reforms will be essential in navigating the evolving landscape of strata governance and insurance.
