Wednesday, May 21, 2014

More Consultation about North Queensland Strata Insurance Reform

One of the issues that featured in the Strata Climate Research was the strata insurance crisis that resulted from cyclones in Northern Queensland in 2011.

It's been the subject of Government enquiry and many suggested changes and the latest episode is the release of further discussion paper on the topic as reported by Strata Community Australia.


You can find the discussion paper, Addressing the high cost of home and strata title insurance in North Queensland here.

Monday, May 12, 2014

The Research is Over, but NCCARF Continues

Whilst our strata & community title climate change research project has ended, the work being done by NCCARF on climate change adaptation issues continues.

You can follow NCCARF activities, latest research, conferences and more here.

Friday, September 6, 2013

Griffith University Conference Presentation Now Online

Francesco Andreone's presentation at the Griffith University Strata& Community Title in Australia Conference on the Queensland Gold Coast about the NCCARF research project and findings Adapting strata and community title buildings for climate change is now available online.

You can download a copy here.

Monday, August 26, 2013

Research Presentation at Griffith University Conference

On Thursday, 5 September, Francesco Andreone will be presenting a summary of the NCCARF research project and findings Adapting strata and community title buildings for climate change at the Griffith University Strata& Community Title in Australia Conference on the Queensland Gold Coast.

You can find our more about the conference here

Wednesday, June 19, 2013

Final Report Released

The final report, Adapting strata and community title buildings for climate change, is finished and published on the 
NCCARF website.

View the report here: www.nccarf.edu.au/publications/strata-title-buildings-climate-change

Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.

Wednesday, June 12, 2013

Stakeholders Manual Released

The stakeholder manual, Adapting strata title communities for climate change: a stakeholder action list manual, is finished and published on the NCCARF website.

View the manual here: www.nccarf.edu.au/publications/strata-title-stakeholder-manual

Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.

Sunday, February 3, 2013

Identifying Strata Climate Change Stakeholders
























Studying the impacts and challenges of climate change for strata and community title buildings involved identifying the key stakeholders.  That has allowed us to interview and survey the right people, develop profiles for each category and think about their interests, needs, skills, weaknesses and abilities.

So, how are they and why do they matter?

Developers - are a key stakeholder group since they create strata and community title buildings so have significant influence on location, configuration, design, features and quality which are probably the most significant things affecting building resilience.

Government - are also a key stakeholder for similar reasons to developers.  They also have significant influence over building location, configuration, design, features and quality through planning and other controls.  But Government also has other interests, including regulating the operation of strata and community title buildings for their lifetime and dealing with the immediate and longer term effects of emergency weather events.

Owners & Executives - are the key stakeholder in this study since they own and run the strata and community title buildings and therefore make all the decisions.  But, perhaps more importantly owners pay for the effects of climate change on buildings: either as levies to repair and upgrade them; or as increased operating and insurance costs; or by suffering rental and value losses.

Strata Managers - play a vital role in strata and community title building operation since apart from providing contracted administration services they are key influencers of owner behaviours and can identify key issues, educate stakeholders about options and become champions for initiatives.  Conversely they can easily impede building adaptation due to lack of awareness, resources and/or motivations.

Resident Managers - like strata managers, resident managers have a key influencer role in strata and community title buildings.  But, because they operate on site and have more intimate understanding of the buildings, they are the frontline of building management, upgrades and emergencies and so are often best placed to know and assess what is [and is not] needed.

Sinking Fund Forecasters - as the industry sector advising strata and community title buildings about the need for future building repair, maintenance and replacement, sinking fund forecasters have good knowledge of the physical needs and shortcomings of the buildings.  That places them in a key position to also assess and factor in climate change impacts, adaptation options and funding possibilities that go beyond routine works.

Insurers - as the last place strata and community title owners look to if climate change damages or destroys their building, insurers are a critical stakeholder in the sector strategies for strata and community title buildings to adequately cope with the impacts of climate change.  The increased frequency of extreme weather events and consequent crises in strata insurance cover have highlighted the significance of insurance and the fragility of this 'last resort' protection.  So, the future role of insurance and insurers in strategies for strata and community title building to deal with climate change induced weather damage and deterioration needs careful consideration.

By considering the impacts, options and realistically achievable changes from the perspectives of each of these stakeholders groups, the research hopes to find mutually acceptable and beneficial solutions to the challenges faced by all strata and community title stakeholders in dealing with climate change.

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.

Tuesday, November 6, 2012

8 New Research Recommendations

The research project review of the questionnaire results has revealed a number of new and evolving issues that also need to be included in the analysis, reasoning and recommendations.

So, 8 supplementary recommendations have been distilled from the suggestions provided by the questionnaire respondents. The following text identifies each recommendation and provides a supporting rationale for each recommendation.


Supplementary Recommendation 1: 
Professional and other non-government bodies such as Strata Community Australia and Green Strata to develop a list of experienced consultants and/or recommended experts who can be engaged to advise owner committees that wish to undertake climate change building adaptation planning and work.

Since owners in S&CT buildings, strata managers and also resident managers are unlikely to have particular climate change building adaptation expertise, they will need advice and guidance. If seeking climate change advice, these key stakeholders are likely to seek information from experts in the field. This is particularly so, given that climate change advice represents a relatively new expert discipline. Since the expertise is developing as both a discrete discipline and also part of more general building technology disciplines, a dual expertise identification approach should be taken.

Comments made by a representative of Green Cross Australia suggest that relative to the potential demand for this type of advice by S&CT buildings, there is likely to be a shortage of experienced people available at the time of preparing this report. We see this factor as providing additional support for this recommendation, as increased visibility given to experts in the field would likely result in more professionals seeking to develop a climate change S&CT building adaptation expertise. This signifies that in the early years in particular, the list would need to be updated regularly.

In addition to providing details of appropriate consultants and experts, the list could also provide information on the kind of experience advisors should have and also the types of questions that S&CT building committees and managers could ask potential advisors.

Supplementary Recommendation 2: 
Government (national, state and/or local) and private sector organisations with vested interests (like insurers and lenders) to subsidise climate change adaptation works on one or more typical strata title buildings in order to provide a model of the type of climate change adaptation works that can be undertaken and to showcase the benefits.

Since awareness levels about climate change, climate change impacts, appropriate adaptation works and the resultant benefits appear to be low amongst strata and community title stakeholders, information and examples to help them understand what adaptation works can be undertaken are particularly important.  The existence of examples of what climate change adaptation works can be achieved would be a valuable resource that could be drawn upon by any climate change adaptation champions working or living in S&CT buildings.

It is notable that the creation of model examples of S&CT building actions and options have already been pursued by government in connection with ecologically sustainable development and other environmentally sustainable initiatives.

Supplementary Recommendation 3: 
Resident manager and strata manager contracts to include provisions covering the type and extent of their responsibilities and authorities in the event of an emergency incident.

Enquiries made by the research team suggest that it is rare for current strata manager and resident manager contracts to contemplate weather emergencies. The absence of such provisions creates unnecessary uncertainty with respect to who is responsible for what actions, should such an emergency event occur. Emergency event management can be expected to proceed more smoothly and in a more expeditious manner should clarification be given to the obligations of strata managers and resident managers, with specifications given with respect to what actions they should and should not take. If such matters are contracted for, a provision should also be made for a manager receiving appropriate remuneration for emergency event responsibilities undertaken.

Developing a set of pro-forma provisions for strata manager and resident manager contracts is recommended. Such provisions could then be adopted or modified to suit individual S&CT buildings, strata manager and resident manager situations. Such provisions should include mechanisms that would allow changes to be made to some of the more specific details of the emergency actions, in light of evolving technologies and knowledge.

Supplementary Recommendation 4: 
Insurers should base insurance risk assessment on a building’s specific characteristics, not just its geographical location. Basing insurance premiums on a building’s specific characteristics, which incorporate climate change resilience, will provide unit owners with an incentive to invest in adaptation to improve a building’s climate change resilience.

Since insurance premiums are not being based (in most cases) on specific S&CT buildings’ resilience, there is a diminished incentive for owners to invest in improving S&CT buildings’ resilience.  Requiring more building specific risk assessment by insurers would result in a fairer building resilience assessment, more appropriate and equitable premium allocations, as well as greater clarity for S&CT building owners with respect to how investment in building adaptation can result in decreased insurance premiums. Ideally, any building resilience investments and climate change adaptation works that reduce insurance premiums should have universal insurance sector approval, so that S&CT buildings that have undertaken such works would have the benefits recognised in premiums quoted, regardless of the insurance provider.

Challenges associated with implementing this recommendation include identifying the infrastructure characteristics that affect building resilience from an insurance risk perspective, ensuring that adaptations are universally recognised by insurers and the additional costs incurred by insurers in connection with conducting building specific insurance assessments.

The development of any new risk assessment guidelines should be made in conjunction with the work of the Australian Resilience Taskforce, which is an initiative of the Insurance Council of Australia  that is intended to provide a platform for collaboration, and alignment across government, industry and non-government organizations to enable increased resilience in Australian communities (www.buildingresilience.org.au). 

Supplementary Recommendation 5: 
Insurance companies to provide strata title schemes with a policy option to insure for infrastructure upgrades, in the event of a claim, not simply for the cost of replacement. Such upgrades could be conducted in a manner consistent with engineering greater building climate change resilience.

Currently, ‘like for like’ replacement policies for S&CT buildings and the strata and community title law obligations to ‘keep in good and serviceable repair’ signify that S&CT buildings will almost invariably install equivalent replacement structures following weather damage. So, an opportunity for improvement and engineering better climate change resilience is lost.

A challenge in implementing this recommendation would likely stem from an apparent widely held insurance industry culture that is opposed to ‘betterment’. A second problem in implementing this recommendation concerns how ‘betterment’ could be handled in a S&CT building insurance policy. One way of dealing with this issue could be to include a policy clause that allows replacement of infrastructure with infrastructure that is (say) up to 25% more expensive than a ‘like for like’ replacement.

Supplementary Recommendation 6: 
Government and industry based training courses directed to strata title unit owners, committee members, managers and other stakeholders to include a ‘prepare your strata title building for climate change’ component.

As part of a wider effort to promote strata and community title stakeholder education, training on climate change issues and challenges should be made available to all key stakeholders. Since the knowledge in question is largely universal to all stakeholders, a generic training module that is appropriate for owners, committee members, strata managers and resident managers could be developed.

Supplementary Recommendation 7: 
A pro forma disaster management plan or plans for strata title communities should be developed by government and/or non-government bodies and made available on a government and privately maintained “prepare your strata title building for climate change” website.

There are already many resources concerning weather emergencies and other disasters, but in only very limited situations do S&CT buildings adopt them.  It appears that even when adopted in the S&CT building context, they are for limited kinds of emergencies.

Yet much of the information and knowledge is universally applicable. So, developing pro-forma disaster and emergency management plans that can simply be adopted or modified to suit individual S&CT buildings’ needs is recommended. Similarly, associated information for owners, residents and other stakeholders can be prepared to inform them of possible plans and important details.

It is notable that Green Cross Australia’s www.hardenup.org website contains pro forma information for tenants about extreme weather preparedness. This was developed in conjunction with the Residential Tenancies Authority.  This resource would provide valuable input to the design of any government initiated pro forma disaster management plan that is tailored to the S&CT context.

Supplementary Recommendation 8: 
As part of the building development and construction approval process, require that an evacuation plan and general disaster management plan be included in a scheme’s original documentation prepared by developers.

Associated to the recommendation about pro forma disaster management plans is this recommendation that developers should prepare and include such plans as part of the original documents for S&CT buildings. Implementation of this recommendation would result in all new S&CT buildings having such a plan and the plan should be made readily available to all owners and residents.  If pro forma plans are available (as per the previous recommendation) then developers could simply adapt them to the particular needs of each building that they develop. This practice would also focus developer attention on climate change and weather emergencies before S&CT buildings are completed. Over time, this can be expected to influence the design of S&CT buildings in a manner consistent with better preparedness for climate change.




Wednesday, October 31, 2012

IPCC Report Contains Detailed Information on Climate Change

Earlier this year the Intergovernmental Panel on Climate Change [IPCC] released its latest report on global climate change trends, information and impacts.  It's the fifth version of the report published by IPCC.

It's a detailed analysis compiled by the world's leading experts and essential reading for anyone who wants to properly understand the current state of knowledge about climate change.  Over 600 researchers have contributed to the report and it's taken almost 2 years to finalise.

The full reference to the report is -

IPCC, 2012 - Field, C.B., V. Barros, T.F. Stocker, D. Qin, D.J. Dokken, K.L. Ebi, M.D. Mastrandrea, K.J. Mach,
G.-K. Plattner, S.K. Allen, M. Tignor, and P.M. Midgley (Eds.)
Available from Cambridge University Press, The Edinburgh Building, Shaftesbury Road, Cambridge CB2 8RU ENGLAND, 582 pp.

and you can find a copy of the latest report here.



Wednesday, October 17, 2012

Information About Weather Events & Damage


One of the ways we're moving this study forward is to develop a listing of weather events resulting from climate change that can inflict building damage such as:
  • Flooding
  • High wind
  • Hail damage
  • Extreme heat damage on buildings
  • Bush fire
  • etc
And, then for each of  these weather events, we will develop a listing of the type of building damage resulting from them.

If you have information on either of these things, email us.

Friday, September 14, 2012

WA Research on Greening Strata Schemes

There's very little research available on strata and community title buildings to start.  And, there's even less on the environmental issues they face.

So, this study by Chiara Pacifici of Curtin University called Greening Strata Title Schemes in WA: Turning barriers into opportunities for individual owners toimplement environmentally sustainable provisions inexisting residential strata dwellings is a welcome addition to the knowledge and thinking base in the area.  Plus it has wider relevance and application.

In the study, Chiara Pacifici looks at the structural legal impediments that affect 'green initiatives' in strata buildings.  In particular, how the kinds of approvals required for most environmental upgrades in strata buildings by strata corporations or owners need three quarter (or higher) decisions and are therefore a lot harder to achieve.  She also considers how these impediments can be appropriately modified and suggests some law reforms.

Interestingly, the strata decision making problems identified in the study apply to other strata issues too - including climate change adaptation works.  So, the analysis and her ideas are a useful addition to our study of the challenges facing strata and community title stakeholders in dealing with climate change weather impacts.

Thursday, September 13, 2012

Overcoming Strata Decision Making Barriers to Climate Change Adaptation

One of the issues this study has already identified is the existence of structural barriers to adaptation in existing building for climate change.


In most Australian states making the changes and upgrades to common property structures and acquiring the additional equipment needed to make 'green' improvements to the building is not included within normal repair and maintenance and will be classified as upgrades.  And, upgrades require higher level approvals. 

In most states a a special resolution (three quarter majority) is required but in the ACT and for South Australian community schemes where the upgrades costs more than $5,000, an approval by unanimous resolution is necessary.

So, environmental upgrades are harder to approve and implement than ordinary repairs - reducing the likelihood of them happening.  That includes many of the changes a strata building might need to make to adapt itself to improve its resilience to climate change weather effects.


But, one Australian exception exists in the ACT where the new (2011) strata legislation permits upgrades and additions for installation of sustainability or utility infrastructure on the common property with only an ordinary (simple majority) decision.  This facilitates these kinds of upgrades.  But the definition of “sustainability infrastructure” is limited covering only infrastructure and equipment that improves the environmental sustainability of the units or reduces the environmental impact of the owners corporation and the unit owners (including related utility service connections and equipment.).  The laws cite examples such as - solar panels, clotheslines, rainwater tanks.


But even these reduced approval thresholds may not apply to climate change adaptation work that is not also sustainability infrastructure.


You can read the relevant provision (section 23) here.


One of the recommendations we're likely to make in this study is to alter the definitions of what is within normal maintenance and repair to include works and equipment that improves climate change resilience and to reduce the decision making thresholds for that kind of work and equipment.



Thursday, September 6, 2012

Innovative Insurance may Assist with Extreme Weather Losses

Our studies so far have revealed that insurance plays a critical role as the risk management default for extreme weather events affecting strata and community title complexes.  

But the experiences of many of those complexes in far north Queensland over the last 18 months also reveals that conventional insurance products and market forces can undermine that protection.  Plus, traditional insurance protections do not encourage or facilitate climate change adaptation.

So new thinking and ideas may be necessary to better deal with the climate change effects of extreme weather events for strata and community title complexes.

Complexitas is an Australian business that works with corporations and government in climate change risk management around the world to help reduce risks by focusing on risk identification, resilience and adaptivity.  In a recent presentation called Can Adaptation and Insurance be Sustainable Partners to Combat X-Events, Compexitas looked at whether the impacts of extreme weather events (a class of X- Events) can be diminished by use of insurance that does not rely on the proof of loss.

This involves something called index-based insurance for highly vulnerable communities and organisations where insurance cover and payouts are not based on proving loss but, rather, the occurrence of weather disasters.  

For instance, in Peru, where a defined group of weather–sensitive farming communities are now offered insurance that is not based on proving loss due to flooding rains but are given payouts at the start of an anticipated disaster season (based on climate mode information and predictability). They then have money to buy emergency seeds and to recover from any event that occurs in the anticipated extreme summer season.

This kind of insurance minimises the impacts of insurance sector failures that are usually caused by market (asset) problems, moral hazard and adverse selection and the inability to respond to and anticipate major shifts in climate and client behaviour.

It's an innovative idea that might be worth considering.  You can find out more by looking at the presentation slides here and reading text of the presentation here.

Monday, September 3, 2012

Wikipedia Information on Australian Climate Change

You've undoubtedly heard a lot about climate change by now.  But, to be a fair, a lot of the information is either too technically complex to understand, too biased (either way) and/or just media hype that is not sufficiently factual.

So, it's hard to understand things well enough to make your own decisions.

Since we live in the modern information age why not use Wikipedia (The Free Encyclopedia) to find out more?  

In fact, this page about the Effects of global warming on Australia is great introduction to the topic; outlining the key concepts, findings and some likely impacts in your part of the country.  And, if you want to find out more it includes links to other sites and many of the leading studies and reports.

Monday, August 27, 2012

Innovative Island Development for Rising Sea Levels

One of the less controversial predictions about climate change is rising sea levels which put low lying land at risk on inundation.

The Maldives is low lying (only about 5 feet above sea level) so it's particularly at risk.  So, Dutch development company, Dutch Docklands, is proposing an innovative development there.

It involves a floating private island, a floating 18-hole golf course (complete with underwater, see-through tunnels between holes), a hotel and convention center, 185 villas, and a further 72 houses on four ringed islands.  The islands are attached to the seabed with flexible lines, or retractable mono-piles, which allow the structures to move gently up and down.

It's a good example of the kind of innovations climate change challenges will promote and you can read more about it here.

Tuesday, August 21, 2012

Enquiry about Electrical Infrastructure


When extreme weather like floods affect strata buildings the electrical supply systems are at risk.

Now the Queensland Department of Energy & Water Supply have produced a discussion paper addressing two of the recommendations from the Queensland Flood Insurance Commission's (QFCI) Final Report relating to improving the resilience of high rise buildings located in flood hazard areas specifically focusing on electricity distribution network systems inside an electricity customer’s premises. 

The QFCI noted that substations located in basements of high rise buildings in the Brisbane central business district flooded during the 2011 floods, ceased operating and remained inoperative for lengthy periods of time. This caused major expense and disruption for many building owners and tenants,” said the Department of Energy & Water Supply.

To view a more detailed discussion on each of these recommendations click here to view the full paper and submissions are due by 31 August 2012.


And thanks Chelsey Blount from StrataBlogger.com.au for finding this.