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ARPC Confirm Short Term Letting In Strata Covered by Cyclone Reinsurance Pool

The Australian Reinsurance Pool Corporation (ARPC) have clarified that properties holiday let on a short term basis in a strata buildings will not be considered commercial for the purposes of determining eligibility for the Cyclone Reinsurance Pool.

The Cyclone Reinsurance Pool excludes buildings greater than $5,000,000 that have more than 50% commercial occupancy. There has been lack of clarity on whether short term holiday rentals would fall under the commercial classification.

Comments were made by APRC CEO Chris Wallace at a recent John Trowbridge forum “Energising The Strata Insurance Market - A blueprint for affordability, availability, competition” on 30th March 2023 clarifying the pools position on short term letting.

ACIL held concerns in relation to the classification of short term holiday rentals given tourism played such a vital role in communities in Northern Australia. We also had concerns for costs burden imposed on residential occupancies (such as owner occupiers & long term rentals) that had mixed occupancy with other short term holiday rentals.

“This clarification by ARPC should come as a great relief to many unit owners who own in strata buildings that have short term holiday rentals. This is more great news for consumers in Northern Australia. The cost of strata insurance for some buildings can be as much as twenty times the cost of insurance in other parts of Australia – this clarification will provide savings for these buildings when strata insurers come on board with the Cyclone Reinsurance Pool.”

ACIL are pleased with this recent development but believe broader eligibility of the pool is needed to assist the most in need consumers such as aged and disability care buildings and properties on Hamilton Island that operate like a strata building but are not titled as strata. We have made representations to the Assistant Treasurer Stephen Jones MP and are meeting other Labor party members to express our views on eligibility.

Contact the APRC via Alexander Drake, Head of Public Affairs 02 8223 6777 for more information.

Further information about Australian Consumers Insurance Lobby can be found on our website For more information about this media release, contact Tyrone Shandiman on (07) 3185 5256 or

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