Homeowner Insights: Separating Fact from Fiction

Earlier this year, CHU conducted research that lifts the lid on what owners think about strata. 1,000 owners across Australia shared their thoughts via an online survey and in focus groups. The results have already sparked discussion on how the industry can help demystify strata and create better outcomes for those investing and living in strata communities.

Do people like living in strata?

The majority agreed that they do enjoy living in strata. They cited the main reasons as: being part of a community, cost efficiencies, shared maintenance, as well as the convenience and amenities. For many owners, strata living is a lifestyle choice that they are happy with, rather than being an economic fallback.

Owners are also becoming increasingly engaged with strata. More than a third recently started reviewing insurance providers and/or strata managers. Others started attending meetings or doing research to learn more about strata.

Are owners satisfied with their strata managers?

The responses to this question will likely be welcome news. 53% of owners said they are extremely or somewhat satisfied. A further 35% were neutral, which means that most people are positive about their strata manager relationship.

Expanding on this, owners said they value collaboration in the relationship with their strata manager.

What do owners appreciate most about their strata managers?

Given the increasing complexity of strata, it makes sense that 50% of owners said they value having their regulatory and safety needs met. 40% appreciated the time that strata managers save, while 39% acknowledge their project management skills.

There were similarly strong results for the expert knowledge, guidance, and peace of mind that strata managers provide.

What is the main reason owners use an insurance broker?

28% of lot owners appreciate the fact that brokers can manage claims and paperwork on their behalf. In fact, convenience, ease and paperwork were the top three reasons for using a broker.

23% said it was cheaper to go via a broker, which shows that owners understand the value brokers provide.

Do owners think they understand strata insurance?

Most owners agree that strata insurance is complex, and 63% said that having strata insurance gives them peace of mind. 59% revealed they’d appreciate getting advice from their strata insurer on maintenance and managing risk.

Do most owners want the bare minimum in insurance cover?

Most owners want more than just the basics when it comes to insurance; with a further 69% stating that insurance is essential to protect their strata property from financial risks.

54% agreed that they would be happy to pay a bit more for better service from their strata insurer. Property is a valuable asset, and most owners will consider several options if the value is clear.

What is most important to an owner when buying strata insurance?

Having an insurer who understands strata-specific needs is most important, and 72% of lot owners agreed with this statement. 70% said that ease of the claims process was their main consideration, and 68% cited their insurer’s reputation.

Price appeared as sixth most important. Which tells us that communicating the value of insurance, the coverage inclusions and service play an important role when owners review and select insurance.

Summary

There’s a lot of good news coming out of this research. Owners are more engaged than before, wanting to attend meetings, learn more and understand the decisions made about strata management and insurance. There is a unique opportunity to find meaningful moments to share information to empower owners. As owners become more informed and proactive on building management, this will hopefully lead to stronger, healthier strata communities and a decrease in the need for insurance claims.

Although we have seen that owners already appreciate the value that strata managers and brokers have to offer, there is an opportunity for brokers and strata managers to further articulate a clear and compelling value proposition.

More educated and active owners can lead to more productive conversations, and an engaged cohort will be better able to partner with their strata managers and strata committees to drive positive change for their communities.

For more information – visit chu.com.au