cohabit insuranceSmarter insurance for your strata building.
The Hidden Half of the Story
When the owners corporation took control of its insurance programme, transparency delivered a dramatically different outcome.
The Brief
Review the insurance programme for a commercial strata scheme where premiums had remained unusually high despite little change to the building itself. The owners suspected something wasn't right—they were correct.
The Challenge
- 36-lot commercial strata scheme
- Renewed with the same insurer since receiving its Occupancy Certificate
- Annual premium had reached $120,000
- Owners had limited visibility into how the insurance programme was being managed
- The existing arrangement carried a combined 40% in placement fees, comprising a 20% strata manager commission and a 20% broker fee
- Requests for an independent insurance review had previously been refused
The Stakes
Without transparency, the owners corporation had no way of knowing whether the premium reflected the building's actual risk—or whether the existing arrangement was delivering the best outcome for owners.
The Cohabit Approach
Rather than simply approaching more insurers, Cohabit reviewed the entire placement from the ground up.
The review uncovered that the market had been making decisions based on incomplete and outdated information. Critical underwriting details—including tenancy information, fire compliance documentation and evidence of proactive defect rectification—had either never been presented or no longer reflected the building's true risk profile.
- Conducted an independent review of the existing insurance programme.
- Identified critical gaps in the underwriting submission, including outdated tenancy information and missing compliance documentation.
- Demonstrated that proactive maintenance and rectification works had materially improved the building's risk profile.
- Enhanced the submission using Cohabit Building Intelligence, providing insurers with a more complete and accurate picture of the building.
- Replaced the previous placement with a transparent fee structure, removing the strata manager commission and representing the owners corporation directly.
The Outcome
- 49% reduction in premium
- 0% strata manager commissions
- 4 competitive insurance options secured
- $2.58M building insured at updated replacement value
- Transparent Fee – Single brokerage fee with direct accountability to the owners corporation
Why It Matters
Insurance premiums are only part of the story.
Owners corporations deserve transparency around how their insurance is placed, who is being paid, and whose interests are being represented.
By removing conflicted incentives, improving the quality of information presented to the market, and working directly for the owners corporation, Cohabit delivered a more transparent process—and a dramatically better insurance outcome.
