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New CHU Green Grants Signal a Shift for Strata Risk

Why small sustainability upgrades may matter for future insurance affordability

New CHU Green Grants Signal a Shift for Strata Risk?w=400

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CHU Underwriting Agencies has launched its inaugural Green Grant Program, distributing $50,000 across seven strata communities on 16 July 2026.
The initiative is modest in scale, with grants capped at $10,000 per successful application, but it points to a larger change in the way strata insurance risk is being discussed.
Instead of focusing only on premium increases after extreme weather or building losses, insurers are increasingly looking at practical ways to reduce risk before claims occur.

For strata committees, the important message is not simply that another grant round may open later in 2026. It is that sustainability, maintenance and insurance affordability are becoming more closely connected. Projects funded in the first round include shared heat pump infrastructure, riverbank restoration and recycling initiatives, showing that insurers are prepared to support works that improve both community outcomes and the resilience profile of insured buildings.

This matters because many strata schemes face a familiar barrier: everyone may agree that upgrades are needed, but shared decision-making, tight capital works budgets and competing owner priorities can delay action. A relatively small grant will not solve major defect, drainage or cladding issues, yet it can help committees start lower-cost improvements that demonstrate progress. Over time, documented risk reduction may also support stronger conversations at renewal, particularly where a building can show it is actively managing weather exposure, ageing infrastructure or energy performance.

The development also extends recent market debate about the cost of strata insurance Australia-wide. Premium stability can be undermined quickly when a building has poor maintenance records, unresolved defects or repeated weather-related claims. Grants of this kind do not replace the need for proper valuations, capital works planning or fit-for-purpose strata insurance coverage, but they can encourage owners corporations to treat resilience spending as part of their insurance strategy rather than an optional environmental extra.

Committees considering similar opportunities should start with a practical risk audit: identify common property assets most exposed to storm, water ingress, heat, fire or service failure; check whether existing maintenance plans are current; and keep clear records of completed improvements. Where the insurance implications are unclear, professional assistance can help translate building upgrades into better renewal submissions and more informed discussions with insurers.

The broader lesson is that insurers are watching how strata communities govern risk. Buildings that can show active maintenance, transparent decision-making and measurable resilience work may be better placed than those that wait for claims to reveal weaknesses. CHU’s grant program is only one initiative, but it reinforces a direction that strata committees cannot ignore: future affordability will depend not only on the market cycle, but on how well each scheme manages the risks within its control.

Published:Tuesday, 21st Jul 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Aggregate Limit:
The maximum amount an insurer will pay for all covered losses during a policy period.