SCA Gets Active on Disaster Insurance Issues

The crises suffered by strata and community title buildings over the last 2 years in far north Queensland, the Northern Territory and north Western Australia over insurance cover, premiums and excesses after a series of natural disasters have become a key focus for Strata Community Australia.


So, SCA has established a special webpage about the issues, run public forums in Queensland in November 2011 and made a detailed submission to the Federal Government parliamentary inquiry into strata insurance in northern Australia 


Find out more about the SCA's position about this difficult issue here.

Research Interviews Begin

One of the first things to do in this study is to conduct interviews with a range of strata stakeholders to learn more about the issues to consider and get important information from people owning, living and working in strata and community title buildings.


They've now started and will be finished in February 2012.


If you think you're someone who can contribute to this stage of the study, contact Francesco Andreone to be part of the process.

Natural Disaster Costs are Significant for Insurers

Climate change can be very costly.

SMH reports that natural disasters in Australia and New Zealand (like the Melbourne hailstorm and Queenstown earthquake) are likely to cost Suncorp more than $270 million in the last 6 months - http://news.smh.com.au/breaking-news-business/suncorp-flags-cost-of-natural-disasters-20120106-1po09.html?utm_source=twitterfeed&utm_medium=twitter

Introducing Strata Climate Change Research

These days climate change is affecting everything in this world - including strata title.

A research team led by Professor Chris Guilding and including Dr Jan Warnken, Dr Dawne Lamminmaki, Professor Deo Prasad and Professor Bill Randolph have secured a research grant from the government funded  National Climate Change Adaptation Research Facility to examine the functioning of strata corporation committees in a world of increased climate change. And, they've engaged Francesco Andreone to conduct the study over the next 16 months. 

The objectives of the study include -

• Examining the extent to which uncertainty is built into strata corporation common property capital expenditure forecasts.
• Examining the adequacy of strata committee decision making powers and the adequacy of procedures relating to the release of funds in the face of increasing common property expenditures combined with a greater incidence of emergency expenditures.
• Providing legislative recommendations to ensure the executive in strata complexes appropriately protect complexes against increased damage occurring in world of climate change.

When the study is completed it will deliver a few things (at least) as follows.

1.  A manual for strata corporation members, “sinking fund forecast” professionals, building insurers and strata managers detailing how uncertainty is currently built into common property capital expenditure forecasts and what constitutes best practice for incorporating greater flexibility into common property capital expenditure forecasts.

2.  A report for legislators that details legislation recommendations that will promote strata corporation and strata committees maintaining the physical integrity of common property in a world of heightened climate change building damage.

3.  A series of papers that disseminate the study’s findings.

Interested strata stakeholders should contact Francesco Andreone to find out more and to be part of the study (in whatever way is suitable to them).

It's one of the first research exercises about the effect of environmental issues on strata corporation operation, management, funding and governance.  And, should reveal some interesting challenges that will be faced by strata corporations trying to deal with uncertain and unpredictable events and possibilities.

Francesco …