In today’s insurance market, strata buildings are being assessed more closely than ever. Insurers are applying greater scrutiny to construction quality, claims history and ongoing risk management. At the same time, repair costs continue to rise and skilled contractors are in high demand.
Against this backdrop, proactive maintenance is no longer simply good practice. It plays a direct role in protecting a building’s insurability, supporting claims outcomes and managing long-term costs.
For strata managers and Owners Corporations, this reinforces an important message: early intervention and structured maintenance planning are essential risk management tools, not optional extras.
Proactive and reactive maintenance: Understanding the difference
Most strata communities sit somewhere on a spectrum between proactive and reactive maintenance.
Proactive maintenance involves:
- Scheduled building inspections
- Planned servicing of key systems
- Regular reviews of capital works plans
- Early identification of emerging defects
- Budgeted and prioritised repairs
Reactive maintenance is characterised by:
- Emergency call-outs
- Unplanned expenditure
- Deferred repairs
- Repeated minor failures
- Escalating remediation costs
While reactive responses may appear cost-effective in the short term, they often result in higher long-term financial and insurance risks.
Why maintenance matters to insurers
From an insurance perspective, maintenance is closely linked to claims outcomes. Many common strata claims arise from issues that develop gradually, including:
- Water ingress through roofs, balconies or façades
- Blocked or deteriorated drainage systems
- Ageing plumbing infrastructure
- Electrical and fire protection failures
- Deterioration of waterproofing membranes
Where damage occurs over time, insurers may classify it as wear and tear, gradual deterioration or poor upkeep. These causes are commonly excluded under strata policies. In practical terms, this means that deferred maintenance can weaken or jeopardise claims, even where damage appears sudden or severe.
Well-documented maintenance programs, by contrast, help demonstrate that a building has been properly managed and maintained – this can be critical when claims are assessed.
How insurers assess building risk
When underwriting strata buildings, insurers now look beyond basic construction details. They increasingly consider:
- Maintenance records and inspection reports
- Capital works planning and funding
- Recent upgrades and remediation works
- Known or emerging building defects
- History of water, fire or structural issues
- Previous claims experience
Buildings with strong maintenance governance tend to attract broader insurer interest and more stable terms. Those with unresolved defects or deferred works often face reduced appetite, higher excesses or more restrictive conditions. Proactive maintenance supports insurability by presenting a lower and more predictable risk profile.
The financial case for early intervention
Maintenance is sometimes viewed primarily as an expense. In reality, it is a form of long-term financial management. Planned maintenance can help strata communities:
- Avoid major system failures
- Reduce emergency repair premiums
- Minimise business interruption
- Smooth levy requirements over time
- Reduce reliance on special levies
- Preserve asset value
By addressing issues early, Owners Corporations are better placed to manage costs progressively rather than react under pressure.
Supporting professional decision making
Strata managers play a central role in guiding committees through maintenance decisions. This often involves balancing technical advice, budget constraints and differing owner priorities.
Clear, evidence-based maintenance planning helps support these conversations. Recommendations are easier to implement when grounded in:
- Independent inspections
- Documented risk assessments
- Insurer expectations
- Long-term financial modelling
This structured approach strengthens governance and reduces the likelihood of delayed action.
Building a proactive maintenance framework
Developing a proactive maintenance culture does not require perfection. It requires consistency, documentation and prioritisation. Key elements include:
- Regular inspections Scheduled reviews by qualified professionals to identify emerging risks
- Current capital works plans Living documents that reflect real building conditions and upcoming needs
- Maintenance registers Central records of works completed, outstanding issues and contractor reports
- Priority risk management Early attention to water ingress, fire safety, electrical systems and structural elements
- Qualified contractors Engagement of appropriately licensed and insured service providers
- Clear documentation Retention of reports, invoices and correspondence for underwriting and claims purposes
- Post-event reviews Assessment of building performance after storms, flooding or major incidents
- Insurance alignment Regular coordination between maintenance planning and insurance reviews
These measures support both operational efficiency and insurance resilience.
How Whitbread supports strata managers
Whitbread works alongside strata managers to help strengthen the connection between building management and insurance outcomes. This includes:
- Reviewing risk information prior to renewal
- Assisting with underwriting preparation
- Advising on insurer expectations
- Supporting claims documentation
- Providing market insight and guidance
Our focus is on helping managers present their portfolios clearly, professionally and confidently to the insurance market.
Prevention is protection
In a market characterised by increasing complexity and scrutiny, proactive maintenance has become a fundamental part of risk management.
For strata communities, it protects buildings, budgets and long-term value. For strata managers, it strengthens professional credibility and supports informed decision-making.
Most importantly, it helps ensure that when claims arise, buildings are well positioned to achieve fair and efficient outcomes.
If you would like to discuss how your maintenance programs align with current insurer expectations, our team is available to provide specialist guidance and support. Protect your portfolio with informed, proactive risk management.
Achieving the best strata insurance outcome
As a broker, our recommendation will not always be based on price. When comparing quotes and policies, it is important to consider the product inclusions, excesses / deductibles, exclusions and cover limits for each insurer. Please contact your Whitbread insurance broker if you would like to know more about the strata market or to discuss a particular risk in greater detail.
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