Strata Insurance Valuation Australia

Under strata schemes management legislation in every Australian state and territory, all strata properties must maintain adequate building insurance to cover the full replacement cost of the building. A strata insurance valuation determines the replacement cost — not the market value — of the building to ensure the sum insured is sufficient to rebuild the property in the event of total loss from fire, storm, flood, or other insured events.

Underinsurance is one of the most significant risks facing strata schemes. If the sum insured is too low, the insurer may apply the principle of average and only pay a proportion of any claim, leaving the owners corporation and individual lot owners to fund the shortfall. Many strata schemes rely on outdated valuations or rough estimates that fail to account for rising construction costs, council requirements, demolition expenses, and professional fees.

Landmark Valuations assesses current construction costs, professional fees (architect, engineer, project management), demolition and site clearance costs, council compliance costs, and statutory charges to calculate the full replacement value. Our RICS-certified reports comply with the relevant state strata legislation — including the Strata Schemes Management Act 2015 (NSW), the Owners Corporations Act 2006 (VIC), and equivalent legislation in other states — and are accepted by all major insurance providers.