Property data company CoreLogic launches Strata Sum Sure to improve transparency and accuracy in strata property insurance valuations
CoreLogic Australia, a leading provider of property data and analytics, has launched Strata Sum Sure, an innovative tool designed to streamline the property insurance process for strata-titled properties in Australia.
Strata Sum Sure delivers fast and cost-effective rebuild cost estimates, for strata managers to ensure adequate insurance cover for properties under their management.
According to the 2022 Australasian Strata Insights Report, approximately one in 10 Australians live in a strata property, with the country’s 356,788 schemes comprising more than three million lots.
Owners of standalone properties have exclusive ownership of both the land and the structure. In contrast, strata owners hold individual titles for their units or townhouses while sharing ownership of common areas like hallways, gardens, and recreational facilities.
Insuring a strata property requires consideration of the replacement cost of both the building and common areas, factoring in construction costs, inflation for project timelines, demolition and removal of debris, professional fees, and compliance with current building standards.
CoreLogic Australia’s Insurance Solutions Director Matthew Walker said strata-titled properties hold a total insured value of approximately $1.3 trillion in Australia.
With nearly one in five residents in NSW living in a strata property, he said there had been significant growth in the prevalence of strata living however for many owners and strata managers establishing accurate rebuild values for this property type was challenging.
“The current valuation approach remains manual, costly, and time-consuming, often resulting in valuations occurring only once every five years,” Walker said.
“Legislation across states varies, with some mandating regular insurance valuations while others don’t enforce and opt for recommendations. Given the rising construction costs in recent years many strata schemes are also at risk of underinsurance, as rebuild estimation practices struggle to keep pace with changes in key construction cost inputs.”
Understanding Strata Sum Sure
Strata Sum Sure offers strata managers an efficient and streamlined way to generate rebuild cost estimates that align with state-specific legislation. The tool can function as either a standalone insurance valuation service or complement existing in-person valuations, ensuring accurate insurance coverage for properties while reducing both underinsurance and overinsurance risks.
Strata Sum Sure provides an estimated replacement cost for buildings and common areas, such as driveways, car parks, and shared facilities, using an advanced algorithm.
It virtually reconstructs the property, factoring in materials, labour requirements (design, project management and professional fees), plus demolition and debris removal requirements in compliance with regulations.
Real-time cost data from national suppliers then refines the estimate, helping strata managers, body corporates, and owners to determine appropriate insurance coverage for the strata scheme.
Walker said regular use of Strata Sum Sure will allow strata managers to stay informed about insurance needs, minimising the risk of both under and over insurance for owners and investors.
“Strata Sum Sure provides a unique solution that enhances transparency and efficiency in the insurance process, helping strata managers meet compliance requirements and protect owners’ interests,” Walker said.
Built on CoreLogic’s established Cordell Sum Sure platform, which supports 95% of residential home rebuild estimates in Australia, Strata Sum Sure factors in bushfire risk, construction cost trends, and other market indicators. Cost Inputs are kept current by a team of researchers, meaning users will get an up to date outcome every time.
Continuous accessibility allows for unlimited re-estimations, keeping strata managers updated without additional costs.
“Strata managers, body corporates, and owners now have a simple, effective way to ensure their properties are always adequately insured,” Walker said.
The tool’s automated reports enable the revaluation of entire strata portfolios with ease, allowing strata managers to share insights quickly with owners’ corporations, reducing reliance on traditional, time-consuming insurance valuation methods.
Supporting the strata sector’s future
Australia’s transition towards higher-density living is driven by affordability, more efficient land use, and optimised infrastructure.
Recent analysis from CoreLogic and Archistar identified the potential for three million additional strata units across Australia’s capital cities, while the Australasian Strata Insights Report revealed that more than 200,000 new lots were added in the last two years, with NSW surpassing one million strata lots following a 9% increase over the same period.
Walker said by enhancing rebuild estimation accuracy, Strata Sum Sure supports compliance with strata regulations and safeguards the interests of lot owners.
“This is an essential and highly anticipated industry tool that not only aligns with legislative requirements but also addresses broader risk management and transparency needs within the strata industry,” Walker said.
