ICA Advocates for Strata Law Reforms in Victoria to Curb Rising Insurance Costs

In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects in residential apartments are costing Australians an estimated $1.3 billion annually. These defects, coupled with poor governance practices, are rendering many strata buildings high-risk liabilities, making insurance coverage more expensive or, in some cases, unattainable.

The ICA's recommendations for reform include:

• Enhanced Governance and Education: Improving transparency and accountability within owners corporations and providing better educational resources for committee members to effectively manage financial, maintenance, and insurance matters.
• Comprehensive Maintenance Planning: Implementing mandatory maintenance plans to ensure timely repairs and upkeep, thereby reducing the risk of defects and associated insurance claims.
• Regulatory Oversight: Strengthening regulatory frameworks to enforce compliance with maintenance and governance standards, ensuring that strata properties remain insurable and safe for residents.

These proposed reforms aim to create a more sustainable and resilient strata sector in Victoria. By addressing the root causes of rising insurance costs-namely, poor governance and deferred maintenance-the ICA believes that residents will benefit from more affordable premiums and improved living conditions.

For strata property owners and residents, staying informed about these potential legislative changes is crucial. Engaging with owners corporations, participating in governance training, and advocating for proactive maintenance can collectively contribute to a more robust and cost-effective strata living environment.

As the review of the Owners Corporations Act 2006 progresses, stakeholders are encouraged to collaborate and provide input to ensure that the reforms effectively address the challenges facing Victoria's strata communities.