NSW Implements Transparency Reforms to Streamline Strata Insurance Claims

One notable development is the move by major strata manager Netstrata to a commission-free, fee-for-service model for new management agreements from January 1, 2026. This shift responds to rising expectations around transparency and trust within the industry.

Despite these reforms, challenges remain in the strata insurance landscape. Decision-making processes can be fragmented, leading to delays and disputes in claims. Early notification and provisional engagement of adjusters are recommended to stabilise governance and facilitate timely resolutions.

Water ingress continues to be a prevalent issue, often resulting in disputes over maintenance versus insured damage. Maintaining accurate records of maintenance and repairs can help prevent or resolve such disputes, ultimately leading to better insurance outcomes.

Strata communities are encouraged to embrace these transparency reforms and adopt proactive measures to enhance governance and reduce claims friction. By doing so, they can contribute to a more efficient and trustworthy strata sector in New South Wales.