Brokers face a “value visibility” challenge among residential strata owners, CHU research has found.

Two-thirds of owners surveyed trust their broker and believe they offer good value, yet nearly half (46%) indicate a preference for buying direct from an insurer, according to the underwriting agency’s annual Strata Index.

CHU says that preference is driven largely by habit and assumptions rather than any aversion to broker services.

“This suggests a lack of understanding of the benefits a broker can deliver, including ease, convenience and value,” the Steadfast-owned strata specialist said.

The survey also finds widespread misunderstanding about the boundaries to a broker’s role in strata insurance.

For example, some respondents think a broker’s job includes co-ordinating maintenance; providing contractors when needed; and management of strata scheme finances.

“This confusion exists across all owner segments, suggesting a widespread lack of clarity around the division of responsibility between brokers and strata managers,” CHU said.

“That confusion matters because it suppresses perceived value. If owners are not clear on what a broker is there to do, it becomes harder for them to distinguish a broker’s value from the work of strata managers, insurers or committee members.

“At the same time, it undermines the perceived value of strata managers when they are not acknowledged for performing their duties.”

The index findings are based on an online survey of 1000 strata lot owners who are involved with their owners’ corporations.

CHU launched the index last year and CEO Kimberley Jonsson says this year’s findings provide brokers and strata managers a framework for understanding and communicating with owners.

“There is a real opportunity here to give owners back a sense of control, helping them understand what’s required in strata living to make decisions with confidence,” she said.

“This isn’t just about communication. It’s about engagement, bringing owners with us as active participants in their community.

“When they understand the impact of their decisions, from maintenance through to resilience and insurance, we see stronger, healthier buildings as the result.”

See the findings here.