Strata insurance specialist CHU has launched Build to Rent, the first insurance product specifically designed for “build to rent” properties, a new property trend in Australia.
According to CHU, individual builders and property developers retain 100% homeownership of the unit or apartment block development rather than selling some or all of the units on completion or registration for a strata title.
“Build to rent” has become popular in the UK, the US, Japan, some parts of Europe, and now in Australia because it offers a more secure and better rental experience, CHU said.
The strata insurance specialist also found a trend towards 100% ownership in Australia by an individual or company that negates the need for registration as a strata scheme under the state-based strata title registration – and CHU's new Build to Rent (Residential Insurance) product provides coverage for these properties.
CHU chief executive officer Kimberley Jonsson said the new product insures the property, provides liability insurance, machinery breakdown cover, and catastrophe insurance.
“The product gives brokers new opportunities in the insurance market,” Jonsson said. “There is a gap in the insurance market for these non-registered strata style units.
“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 new product will give the owners of these properties peace of mind.”
