When it comes to managing strata properties, trust and transparency matter — especially when it comes to something as important (and often expensive) as insurance.
At Summit Realty, we believe decisions regarding strata insurance should always be made in the best interests of the strata company and its owners. That’s why we do not accept insurance commissions from insurers or insurance brokers when arranging strata insurance policies.
While many lot owners assume their strata manager is simply sourcing the best policy available, the reality across the industry can sometimes look very different.
Did You Know Your Insurance Premium Could Be Higher If Your Strata Manager Takes Commission?
In Western Australia, it is common practice for some strata management companies to receive commissions from insurance brokers or insurers when arranging insurance policies on behalf of strata companies.
These commissions are typically paid as a percentage of the insurance premium itself.
This raises an important question:
If a strata manager earns a higher commission on a higher premium policy… are owners always being presented with the most cost-effective insurance option available?
Because commissions are often built into the overall cost of the policy, owners may unknowingly be paying more over time.
What Does Western Australian Law Say?
Under the Strata Titles Act 1985 (WA), strata managers are legally required to disclose any commissions, rebates or benefits they receive in connection with arranging insurance for a strata company.
While disclosure is an important legal safeguard, many owners may not realise these commissions exist in the first place or fully understand how they can influence the insurance process.
Transparency shouldn’t simply be about legal compliance, it should give owners confidence that decisions are being made purely in their best interests.
Why Summit Realty Takes a Different Approach
At Summit Realty, we have made a clear decision:
We do not accept strata insurance commissions.
Why?
Because removing financial incentives allows us to assess insurance policies based solely on:
- The level of coverage required for your scheme
- The value offered by competing insurers
- The suitability of the policy for your building and owners
- The long-term financial interests of the strata property
Our role is to advocate for the strata property, not profit from insurance arrangements.
By refusing commissions, we eliminate potential conflicts of interest and ensure every insurance recommendation is objective and transparent.
Expert Insight From Our Strata Manager, Kim Dawes
As our Strata Manager, Kim sees firsthand how insurance arrangements can affect owners over time.
“Many owners are unaware that insurance commissions paid to strata managers can be built into the cost of their insurance premium, meaning owners may ultimately pay more over the life of the policy.
Where a strata manager receives commissions from certain insurers, there is also the potential for the insurance market to be narrowed, with quotes only being sought from providers that offer commission arrangements. This can reduce competition and limit the number of insurance options presented to the strata company.”
This is exactly why we believe independent insurance recommendations are critical.
The Benefits for Property Owners and Councils of Owners
Choosing a strata management company that does not accept insurance commissions can provide significant advantages, including:
✓ Greater transparency around insurance decisions
✓ Reduced conflicts of interest
✓ More competitive insurance comparisons
✓ Confidence that policy recommendations are based on value and suitability
✓ Peace of mind knowing your strata property’s interests come first
Ask The Question Every Strata Owner Should Be Asking
If your current strata manager arranges your insurance, it is worth asking:
Are they receiving commissions from insurers or brokers?
And more importantly:
Are you being shown the widest range of insurance options available, or only those tied to commission arrangements?
At Summit Realty, we believe strata management should be built on trust, transparency, and doing what is right for owners.
That means putting your interests first, every time.
Looking For Transparent Strata Management In WA?
If you want a strata management partner committed to transparency and independent advice, we’re here to help.
Because when it comes to protecting your property investment, every decision should be made with your best interests in mind.
Contact Summit Realty today to learn more about our independent strata management approach by emailing strata@summitrealty.com.au.