Strata specialist CHU has launched a product designed specifically for “build-to-rent” properties as the development style gains traction in Australia.

The “build-to-rent” approach involves builders or developers retaining complete ownership of a block, rather than selling some or all of the units on completion or registering it for strata title.

CHU says the practice is popular in major cities in the UK, the US, Japan and parts of Europe as it offers a more secure and better rental experience, and the company has identified a need for cover that meets the requirements of such developments locally.

“There is a gap in the insurance market for these non-registered strata style units,” CHU CEO Kimberley Jonsson said.

“The risks seem to fall between the cracks for insurance, as they are neither a registered strata plan nor a residential home building.”

CHU’s Build to Rent product insures the property, provides liability insurance, machinery breakdown cover and catastrophe insurance.

Ms Jonsson says the product gives brokers new opportunities in the insurance market and provides owners of the properties with peace of mind.