Independent ratings agency StrataRatings has released its inaugural grading of strata products in the residential and commercial markets.

The best-performing products secure platinum status, followed by gold, silver and bronze.

A platinum rating means the product has good risk transfer, is acceptable for most strata schemes and has few detracting factors. Gold-rated products have either slightly less cover or cause intermediary risk due to a limited distribution method.

StrataRatings’ assessments are based on such questions as whether a policy is for insured-events or a broad-form accidental loss/damage policy, its availability in the market, how comprehensive its wording is, historical claims and low-occurrence, high-cost losses.

“Our goal is to allow owners’ corporations to have a general understanding of the quality of the 22 products available to them, so they can decide who they want to get quotes from,” StrataRatings MD Simon Plummer told insuranceNEWS.com.au. “From there they can consider specific policy factors and make a decision that suits the scheme best.”

Residential covers with platinum ratings are provided by Strata Community Insurance, CHU Strata Insurance and Strata Unit Underwriters.

In the gold category are Expert Strata Insurance, QUS Strata Insurance, Longitude Insurance, CHUiSaver Strata Insurance, Chubb Insurance and Hollard Insurance.

In the platinum commercial category are Strata Community Insurance, CHU Strata Insurance and Strata Unit Underwriters. Expert Strata Insurance, QUS Strata Insurance, Longitude Insurance, Chubb Insurance and Hollard Insurance rate gold.