Thursday, January 31, 2013

The Strata Building Durability Dilemma

The Strata & Community Australia Linkedin Group recently included this discussion thread started by Peter Greenham about strata building durability.

The issues he identifies link closely to many of the findings and recommendations of this research.

Peter has identified an interesting contradiction between building construction controls, strata repair & maintenance obligations and what's good for strata corporations and strata owners. We've seen this in the Griffith University & NCCARF research we're doing on climate change impacts on strata buildings.

Building standards are [as you point out] mostly focused on structural integrity and human safety which don't necessarily equate to more durable and sustainable buildings.  But, strata corporation's have never ending obligations to maintain and repair the buildings [regardless of cost] and when they deteriorate or are destroyed [usually by adverse weather] to replace them.

What strata corporations and strata owners ideally need are more durable, low maintenance and resilient buildings. But that's not happening at the development phase for many reasons and strata owners are reluctant to invest in improved building durability and sustainability.  And, when the building is damaged and repaired using insurance proceeds, it's not usually possible to improve the structures since that's 'betterment' and not covered under most policies.

There have already been and are more changes coming to improve building sustainability but they are more focused on energy use than durability, they will take a while to filter into strata buildings and they won't address existing strata stock.

So, strata corporations and strata owners will likely continue to suffer the problem of long term obligations to maintain, repair and replace buildings that were designed to be strong and safe but not, necessarily, durable.

Wednesday, January 30, 2013

Unaffordable Australian Flood Insurance

One of the key findings of our research is that insurance is the key strategy adopted by most strata buildings for adverse climate change impacts.

So, the availability, extent of cover and affordability of insurance cover is a crucial factor and that's become an increasing problem throughout Australia in recent times.

This article in Property Observer reveals that it's worse than many people my think.  Although the article focuses on free standing homes the problem extends to strata buildings when (and if) they can get flood insurance.

The article states that Queensland flood insurance offered by Allianz ranges from $8,200 to $19,000 per dwelling, that flood cover can cost from 7 to 17 times more than home insurance without it and 4 out of 5 domestic building insurance policies include flood cover.

And since the 2012 Federal Government recommendations do not make flood cover mandatory or contain premiums for the cover, it's likely the situation will continue to worsen for affected strata owners.

Sunday, January 27, 2013

North Queensland Buildings Face Ex-Cyclone Oswald in 2013

Just as 2013 begins North Queensland buildings have been affected by another extreme weather event in ex-cyclone Oswald.

This Courier Mail update (as at 27 January 2013) outlines the affected areas.

Tuesday, January 22, 2013

Climate Change Questionnaire Findings: Executive Summary

The research study survey results have now been collated and a summary of the findings and resulting recommendations prepared. 

It makes interesting reading and you can download a copy here.