North Queensland strata owners who commission property inspections every seven to 10 years should earn lower premiums for reducing cyclone risk, a report from James Cook University says.

The university undertook research for the Insurance Council of Australia (ICA) in response to complaints about soaring prices and availability of cover.

It says an awareness program should be developed to encourage property owners to secure roofing, doors and windows to prevent loss.

It finds bigger, multi-storey buildings are a source of more claims, and of greater cost, because they have large windows and doors that are vulnerable to wind-driven rain.

The university’s cyclone testing station finds building age has less impact than water damage from wind-driven rain, and says more research is needed on minimising this risk.

ICA CEO Rob Whelan says more than 80% of cyclone claims reviewed in the study included damage from water ingress.

“The combination of high winds and driving rains typical of cyclones means water can find its way through doors and windows, while damage to a TV aerial or to guttering can leave a roof exposed to water and [cause] further damage to the interior of a property,” he said.

The researchers say regular property inspections can identify and prioritise issues affecting building resilience.

“It is proposed that providing an insurer with evidence an independent inspection has been conducted and actions taken will demonstrate a reduction in risk and [bring] a corresponding reduction in premiums and excess,” the report says.

The three-month study reviewed claims from policies active in 2010 and 2011 and claims data from Cyclone Yasi in 2011.

Claims ranged from less than $1000 to more than $1 million and the average was $75,000.

Cyclone Yasi caused $1.4 billion of insurance losses. The 12 cyclones that have been declared catastrophes in the past 20 years have caused total insured losses of $2.32 billion.