New Data Tool Aims to Mitigate Pervasive Underinsurance Risk in Strata Sector
A new data-driven tool from CoreLogic aims to address the significant and growing risk of underinsurance within Australia’s strata property sector. The platform, Strata Sum Sure, represents a market response to a climate of rising construction costs and supply chain disruptions that frequently render existing insurance coverage inadequate, exposing owners to severe financial liability.
Underinsurance in strata schemes is a pervasive issue that can lead to substantial out-of-pocket expenses for owners following a major event like a fire or storm. For property professionals, from strata managers to insurance brokers, the accurate assessment of rebuild costs is a critical component of client protection and liability mitigation.
By leveraging market-leading construction cost data, the new tool is designed to provide more accurate and transparent rebuild estimates. This enhances the ability of professionals to recommend appropriate coverage levels and facilitates clearer communication between owners and insurers. The platform’s capacity to assess entire portfolios also marks a step forward in data-driven risk management for large-scale strata management firms.
The emergence of such specialised technology underscores a broader shift towards data analytics in the property industry. It highlights the increasing responsibility of professionals to stay current with not only construction costs and regulations but also the technological tools available to manage risk effectively. While professional judgement remains essential, leveraging advanced data solutions is becoming a baseline requirement for safeguarding client investments.
This article is based on a report from www.corelogic.com.au titled “Strata Sum Sure | Strata Rebuild Cost Estimator”. You can find the original article here: https://www.corelogic.com.au/software-solutions/strata-sum-sure
How can technology like Strata Sum Sure be further integrated with real-time market data and AI to provide even more accurate and dynamic rebuild cost estimations, accounting for unforeseen events and evolving construction practices?
Disclaimer
The information contained in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. The Australian Property Network (APN) is not a licensed financial advisor. The content is based on data from third-party sources and is provided without any warranty as to its accuracy, currency, or completeness. Property values can go down as well as up. Before making any property or investment decisions, you should conduct your own research and consider seeking independent professional advice tailored to your specific circumstances.
