WEATHER RELATED INSURANCE CLAIMS AND THE IMPORTANCE OF THE 10 YEAR MAINTENANCE PLAN

Adapt Risk Solutions
Jul 14
2 min read

Updated: Jul 20

Australia is no stranger to extreme weather, and prolonged wet conditions continue to test the resilience of our infrastructure, buildings, and insurance policies.

Increased rainfall — often driven by patterns like La Niña — brings higher risks of property damage, particularly in urban environments where drainage systems are under strain.

When these weather events hit, the insurance and property industries often face a surge in claims. Make-safe repairs and restorations can be delayed as service providers become overwhelmed, leaving many properties exposed to further damage while they wait

***Cyclones - a familiar sight to Australians across the northern regions of the country***

The Hidden Cost of Poor Maintenance

A common theme reported by insurance assessors during periods of heavy rainfall is poorly maintained infrastructure — especially drainage systems, roofing, and stormwater management. Many properties, particularly in strata environments, are simply not built or maintained to handle high volumes of water.

Failing to keep drainage systems in good condition can even work against a property owner when it comes to insurance claims. In some cases, insurers may decline or limit payouts where negligence in maintenance is evident.

Strata Schemes & The 10-Year Maintenance Plan

Strata schemes — particularly those with 10+ lots or a replacement value over $5 million — are now required to establish a 10-year maintenance plan and a corresponding reserve fund. This regulation (introduced in Western Australia and various other jurisdictions) provides a key opportunity for Councils of Owners to take a proactive approach to managing risk.

By reviewing the condition of key areas like roofing, guttering, plumbing, and weather sealing, strata owners can prevent issues before they become expensive claims — or worse, reasons for claim denial.

Water Damage: The Most Common (and Costly) Risk

Water damage is one of the most frequent causes of insurance claims in Australia, and one of the most expensive. Studies from major insurers show sharp increases in the cost per claim, with averages rising by over 70% in recent years.

Here are some of the most common culprits:

Burst Flexi Hoses – A silent risk hiding under sinks and behind washing machines. Replace old or low-quality hoses.
Blocked Gutters – Overflow can cause water to seep into ceilings and walls. Gutter guards may help.
Blocked or Cracked Pipes – Regular inspections can prevent internal flooding or water wastage.
Leaking Windows and Doors – Check and maintain seals and flashing.

Burst pipes are one of the most common types of claims made against strata policies

Insurance Is Not Getting Easier

As extreme weather events become more common, insurers are tightening their terms:

Fewer providers offering coverage in high-risk areas
Increased premiums
Water damage exclusions or excesses as high as $10,000

For strata schemes and property owners, being proactive is critical. A robust maintenance plan — backed by clear documentation — can strengthen your position at renewal and reduce the risk of claims being declined.

Final Advice