Following regulatory updates to the Cyclone Reinsurance Pool effective April 1, strata buildings in eligible regions can now receive insurance premium reductions when undertaking approved mitigation activities. These activities include structural reinforcements such as storm-resistant windows, upgraded roofing, and compliant external doors.
In addition to the reinsurance pool updates, the $40 million Strata Resilience Program has been launched, jointly supported by the federal and Queensland governments. The program provides grants covering up to 75% of the costs for cyclone mitigation measures, with limits set at $15,000 per residential lot and $150,000 per strata scheme. Funding is shared across all stakeholders:
- The federal government contributes 50%.
- The state government up to $20 million (25%).
- The remainder is covered by property owners.
Insurance experts note that past programs of this nature have stimulated regional employment through demand for local contractors and building services. The Strata Resilience Program is expected to help reduce the risks of cyclone damage, making buildings safer while also putting downward pressure on insurance premiums.
Strata property owners are advised to assess their buildings' current resilience to cyclones and consider applying for these programs to not only enhance safety but also achieve long-term cost savings on insurance premiums.
