One upfront instalment, then eight monthly. Zero owner-paid fees. The same logic that's powered the accounting profession for decades, brought to Strata Schemes.
We pay your insurance premium in full to the insurer on your behalf. The Strata Scheme repays us across nine instalments — one upfront instalment at funding settlement (essentially double the size of the monthlies, plus a small fee) followed by eight evenly-spread monthly instalments across the next eight months.
That single design choice is what smooths cash flow, aligns insurance costs with levy collection, and keeps the funding cost from ever landing on an individual lot owner's bill.
Cash flow predictability is the entire point. One upfront instalment at funding settlement, then eight evenly-spaced monthly payments. No surprises, no large draws on the scheme's cash reserves.
An illustration of how a typical funding arrangement is repaid month by month.
One of the largest markets for Insurance Premium Funding has long been the accounting profession, paying their substantial Professional Indemnity premiums. The reasoning translates directly to Strata Schemes.
Accountants understand the time value of money intuitively. A large annual PI premium paid up front locks up working capital that could be earning, growing, or covering an unexpected expense. Spreading the premium across the year is the rational play.
A strata scheme paying a full annual premium up front drains the scheme's cash reserves or forces a special levy. Spread that premium over the year and the scheme keeps reserve capacity for the things those reserves are actually for — lifts, roofs, common-area work that can't wait.
Not every Strata Scheme needs premium funding. But for buildings facing one or more of these pressures, it's almost always the cleaner path.
Premium funding turns a single large outflow into nine manageable ones, keeping cash available for committee-approved spend that actually builds asset value.
If insurance falls due before quarterly levies are collected, funding bridges the gap so the building stays covered and the scheme isn't forced into a short-term special levy.
Cash reserves exist for lifts, roofs and common-area capex. A single insurance bill shouldn't compromise the reserves the building has set aside for genuine long-term maintenance.
No. The cost of premium funding is built into the funding arrangement itself, repaid by the Strata Scheme from levy income. Individual lot owners don't pay anything extra to us.
We commit to an indicative quote within 24 hours of receiving a complete application. For clean, complete data we're often back to you the same business day.
Yes. We pay your insurer the full premium amount on the policy's start date. The Strata Scheme then repays us across the nine-instalment structure. The insurance cover itself is in no way contingent on the scheme's repayment progress.
We have a Financial Hardship Guidelines policy that sets out how we work with Strata Schemes facing genuine repayment difficulty. The first step is always to talk to us early — you can read the full Financial Hardship Guidelines in our legal information page.
No. Strata Schemes can apply directly via our short online application form. Many applications also come through accredited strata managers — your manager can lodge on your behalf if you prefer.
Apply online and receive an indicative quote within 24 hours.
Apply for Funding Or call 03 9134 7567 to talk it through.