Question: Does our strata building insurance cover diagnosing and repairing concrete cancer costs? What are the typical exclusions in insurance policies related to this?
Answer: Strata insurance excludes damage caused by concrete cancer, which is considered a gradual deterioration or a building defect.
Concrete cancer, also known as concrete spalling, is a condition where steel reinforcement within concrete begins to corrode, usually due to water ingress. As the steel rusts, it expands and causes the surrounding concrete to crack, flake, or break away. Common signs include rust stains, bubbling or cracking concrete, and pieces of concrete falling off.
Strata insurance excludes damage caused by concrete cancer, as it is considered a gradual deterioration or a building defect, rather than a sudden or accidental event. These policies are generally designed to cover insured events such as water damage, storms, fire, or impact—not maintenance issues or long-term structural faults.
While it can be expensive to diagnose and repair, unfortunately, concrete cancer is usually considered a building upkeep issue and is a cost that the owners corporation must bear.
This post appears in Strata News #740.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.