The Insurance Council of Australia (ICA) has tasked James Cook University (JCU) with designing an engineering inspection scheme for strata title properties in north Queensland.

In October a JCU study recommended regular inspections to ensure properties are resistant to extreme weather and to improve understanding of how they might perform.

ICA CEO Rob Whelan says designing the scheme is the “logical next step”.

“Once it has been developed, governments can consider adopting the scheme to help strata owners and managers identify and potentially manage vulnerabilities to their buildings in regions exposed to extreme weather such as cyclones.”

Strata property owners could use inspection reports to negotiate lower insurance premiums, ICA says.

Strata Community Australia CEO Mark Lever has welcomed the initiative, but told insuranceNEWS.com.au clarity is needed on who pays for the reports.

“Engineering reports are already very much part of the strata landscape for a wide range of repair and maintenance purposes,” he said. “They can be expensive, depending on the scope.

“And it would create a real dilemma for a body corporate if the recommended remedial action ended up costing far more than any potential savings in insurance – a very likely scenario for some.

“That said, any initiative that might help ease the crippling insurance burden in north Queensland should be encouraged.”

The JCU project, which includes reviewing potential for a government assistance grant to help drive the service, will begin this week.