Setting the sum insured
How to determine the correct replacement value for a strata building and keep it up to date.
Before you start
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The building's insurance policy is recorded in StrataOwn under Compliance → Insurance.
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You have a recent insurance renewal or valuation report to hand.
Understand replacement value
The sum insured must reflect the full replacement cost — the cost to demolish and rebuild the structure to the same standard — not its market value. Under-insurance puts the scheme at risk of a shortfall after a total loss.
Commission a valuation when due
Most states require a replacement valuation every 5 years. StrataOwn tracks the last valuation date and alerts you 90 days before it is due. Use a registered quantity surveyor or specialist insurance valuer.
Update the policy record
In Compliance → Insurance, open the policy and edit the Sum insured field. Attach the valuation report as supporting documentation so the figure is auditable.
Frequently Asked Questions
What is the consequence of under-insurance?expand_more
If the scheme is under-insured, the insurer may apply an averaging clause — paying only the proportionate share of any claim equal to the shortfall. This can leave lot owners funding a significant portion of repairs themselves.
How often should we review the sum insured?expand_more
At every renewal at minimum, and after any significant building works. A formal valuation is typically required every 5 years but interim increases for construction cost inflation are good practice.
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