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The proptech has debuted Strata Sum Sure, which provides fast and cost-effective rebuild cost estimates to streamline the insurance process across the multidwelling market.
Built on CoreLogic’s established Cordell Sum Sure platform, which supports 95 per cent of residential home rebuild estimates in Australia, Strata Sum Sure is a new tool aimed at simplifying the insurance process for strata-titled properties across the country.
Factoring in elements such as bushfire risk, construction cost trends and other market indicators, the new platform keeps its cost inputs up-to-date by a dedicated team of researchers, meaning users can expect a real-world valuation with every use.
To provide estimated replacement costs for buildings and shared property, such as driveways, car parks and common areas, the platform uses an advanced algorithm to reconstruct the property, factoring in materials, labour requirements plus demolition and debris removal.
Cost data that are collected from national suppliers then sharpens the estimate, helping strata managers, body corporates and owners tailor their insurance needs.
The tool can perform a standalone insurance valuation service or can work in conjunction with in-person valuations, ensuring accurate insurance coverage for properties while aiming to reduce both underinsurance and overinsurance risks.
The firm noted that according to the 2022 Australasian Strata Insights Report, approximately one in 10 Australians live in strata properties, with over 3 million lots across 356,788 schemes nationwide. Insuring a strata property requires a detailed assessment of building replacement costs and common areas, factoring in construction costs inflation for project timelines, demolition, debris removal, and compliance with current building standards.
CoreLogic Australia’s insurance solutions director, Matthew Walker, also noted that strata-titled properties in Australia collectively hold an insured value of approximately 1.3 trillion.
Walker commented that the rising popularity of strata living – with nearly one in five residents in NSW living in a strata property – has amplified the need for accurate and efficient valuation methods.
“The current valuation approach remains manual, costly and time-consuming, often resulting in valuations occurring only once every five years,” Walker said.
Varying across states, some legislation mandates regular insurance valuations while others don’t enforce and decide on recommendations. Rising construction costs in recent years also put many strata schemes at risk of underinsurance, as rebuild estimation practices struggle to keep up with changes in key construction cost inputs.
Strata Sum Sure addresses these challenges by providing real-time rebuild cost estimates tailored to state-specific legislation.
Walker noted that regular use of Strata Sum Sure is intended to keep strata managers informed about the insurance needs of owners and investors, effectively minimising the risks of underinsurance and overinsurance.
“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.
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