Why Early Identification of Tenants in Commercial Strata Complexes Matters

In today’s commercial strata environment, owners and strata managers face growing complexity in managing risk and ensuring that insurance cover remains appropriate. One often overlooked – yet crucial – aspect of this process is the early identification and disclosure of tenants in commercial strata complexes.

Why it matters

Insurers assess premiums and coverage terms based on the occupancy of each lot. The type of tenant – whether it’s an office, café, warehouse, or light industrial operator – can significantly influence the perceived risk. For example, a storage tenant handling flammable goods presents a very different risk profile compared to a professional services tenant. Without accurate tenant information, insurers may apply conservative loadings, exclusions, or higher excesses to account for unknowns.

Avoiding coverage gaps and disputes

Failure to disclose tenant information at the outset may lead to challenges down the track if a claim arises. An insurer could argue that material facts were withheld, which may affect claim settlement or create costly delays. Early identification ensures the insurer’s records match the specific use of the property, protecting both owners and the strata company from unexpected outcomes.

Supporting proactive risk management

By identifying tenants early, strata managers and brokers can work together to highlight potential risk exposures and ensure compliance with building regulations, fire safety standards, and liability coverage. It also helps brokers negotiate more competitive premiums on behalf of the scheme, as insurers reward transparency and accurate disclosure.

Benefits for owners and councils

For strata companies, early tenant identification delivers peace of mind. It ensures that the scheme is not unintentionally subsidising higher-risk occupancies, helps maintain appropriate reserves for insurance, and strengthens relationships with both insurers and tenants. Most importantly, it demonstrates proactive governance, which is critical in today’s compliance-driven environment.

At Lync Insurance Brokers, we work closely with strata managers and councils of owners to ensure that tenant details are captured early and communicated clearly to insurers. This simple step can make a significant difference in securing comprehensive, competitively priced, and reliable cover for commercial strata complexes.

Lync Insurance Brokers Pty Ltd (ABN 31 169 552 372) is a corporate authorised representative (AR No. 001306015) of PSC Connect Pty Ltd (ABN: 23 141 574 914) which holds an Australian Financial Services Licence (AFSL 344648).

This information is of a general nature only and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to you and obtain and read the relevant Product Disclosure Statement (PDS).

This article is bought to you by SCA (WA) sponsor Lync Insurance Brokers.