Strata insurance costs have surged in northwest WA in the past five years as underwriters adopt a cautious approach to providing cover in the cyclone-prone region.

But the relatively recent boom in the region’s development and its sparser population have eased the pressures compared with northern Queensland, according to brokers.

Perth-based Cowden director and founder Colin Cowden says the cost of strata cover has probably doubled in the past five years, and obtaining it requires “a tailored approach”.

“There are some companies that just totally redline it, but there are a number of companies that are offering the insurance up there,” he told insuranceNEWS.com.au.

“You have to talk to them and present your case and work hard. We do have to do it on a case-by-case basis.”

The region between Broome and Exmouth is the most cyclone-prone part of the Australian coast, the Bureau of Meteorology says. An average of five cyclones is encountered each season. Two will cross the coast and one will be severe.

But damage in recent years has been low compared with Queensland, where cyclones Larry and Yasi led to insurance costs of about $2 billion, according to Insurance Council of Australia figures.

Many insurers quit north Queensland after heavy losses from cyclones, and the higher cost of the cover available is blamed for a property slump in parts of Cairns.

“It has been an issue that has been highly alive in Queensland for two or three years now,” EBM Insurance Brokers Chairman Alan Bishop told insuranceNEWS.com.au.

“I’m not sure we are getting the same level of discourse in the west, although rates have certainly increased substantially.”

The exit of a dominant strata provider in WA has affected the market, but cover is available and priced according to factors such as construction type, building age and flood risk, he says.

“There are many and varied circumstances that dictate the outcome of a rate for a strata or standalone dwelling.”

Prices have risen from a very low base, Mr Bishop says.

Population density along the northwest coast is well below Queensland levels, there are fewer older dwellings, infrastructure is newer and recent developments reflect improved cyclone building standards.

“With the last big cyclone that hit Karratha there was virtually no damage, other than debris blown around,” Mr Cowden said.