Professionals Insurance Online :: News
SHARE

Share this news item!

Proposed Building Code Reforms Aim to Mitigate Water Leak Issues

Engineers Australia Backs Changes to Enhance Building Integrity

Proposed Building Code Reforms Aim to Mitigate Water Leak Issues?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Engineers Australia has recently expressed strong support for proposed amendments to the National Construction Code (NCC) aimed at mitigating water leaks, which are identified as the predominant cause of defects in apartment and commercial buildings.
This endorsement underscores the critical need for enhanced standards to address a pervasive issue that has significant financial and structural implications.

Water leaks account for up to 90% of building defects, imposing an estimated annual cost of $3 billion on building owners and insurance companies. The proposed changes to the NCC focus on improving waterproofing and water shedding standards to minimise the risk of water ingress and accumulation within buildings. Additionally, the reforms aim to prevent redirected water from causing damage to adjacent properties.

Key aspects of the proposed amendments include:

  • Utilising gravity to naturally collect, redirect, and drain water, thereby reducing the likelihood of water pooling and subsequent leaks.
  • Eliminating flat surfaces from balconies, roofs, and basement floors, which are common areas prone to water accumulation and leakage.
  • Implementing new guidelines for outdoor concrete slabs, requiring structural engineers to account for potential sagging over a 10-year period to ensure continued effective drainage.

Romilly Madew, CEO of Engineers Australia, emphasised the collective responsibility of industry stakeholders-including builders, architects, developers, and designers-in improving standards to meet Australia's unprecedented housing demand. She highlighted the importance of addressing existing challenges to facilitate the delivery of high-quality, resilient housing.

Michael van Koeverden, a member of Engineers Australia, pointed out the urgency of these changes, noting that while slab membranes typically have a lifespan of 10-15 years, structural designs are intended to last 40-60 years. The proposed NCC amendments aim to bridge this gap by enhancing design and construction processes and fostering collaboration among all parties involved in building projects.

For construction professionals, these proposed changes signify a shift towards more stringent standards that prioritise long-term building integrity and occupant safety. Adapting to these reforms will require a thorough understanding of the new guidelines and a commitment to implementing best practices in waterproofing and drainage design.

From an insurance perspective, the adoption of these enhanced standards could lead to a reduction in claims related to water damage, thereby potentially lowering premiums and improving the overall risk profile of insured properties. Insurers may also consider offering incentives for buildings that comply with the updated NCC standards, recognising the proactive measures taken to mitigate water-related risks.

In conclusion, the support from Engineers Australia for the proposed NCC amendments highlights a proactive approach to addressing a longstanding issue within the construction industry. By embracing these changes, stakeholders can contribute to the development of more resilient buildings, ultimately benefiting owners, occupants, and the broader community.

Published:Wednesday, 21st Jan 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Surge in Mental Health Claims Reshapes Australia's Life Insurance Landscape
Surge in Mental Health Claims Reshapes Australia's Life Insurance Landscape
26 Jan 2026: Paige Estritori
Australia's life insurance sector is witnessing a significant transformation, with mental health conditions emerging as the predominant cause of Total and Permanent Disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health-related TPD claims now constitute nearly one-third of all such claims, highlighting a profound shift in the factors leading Australians to exit the workforce permanently. - read more
Australian Life Insurers Report Significant Profit Growth in FY25
Australian Life Insurers Report Significant Profit Growth in FY25
26 Jan 2026: Paige Estritori
The Australian life insurance industry has reported a remarkable financial turnaround in the fiscal year 2025, with earnings more than doubling to $360 million, according to the latest figures from the Australian Prudential Regulation Authority (APRA). This 210% increase in profit after income tax marks a significant recovery from previous years' losses and underscores the sector's resilience and adaptability. - read more
Australia's General Insurance Industry Achieves Record $6.1 Billion Profit in 2024
Australia's General Insurance Industry Achieves Record $6.1 Billion Profit in 2024
26 Jan 2026: Paige Estritori
Australia's general insurance sector has reported an unprecedented after-tax profit of $6.1 billion for the year 2024, according to KPMG's General Insurance Insights report. This figure is three times higher than the five-year average of $2 billion, marking a significant milestone in the industry's financial performance. - read more
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
26 Jan 2026: Paige Estritori
In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion. This surge in profitability is attributed to substantial premium hikes and a year with fewer severe weather events. - read more
Rising Insurance Premiums Prompt Calls for Industry Reform
Rising Insurance Premiums Prompt Calls for Industry Reform
26 Jan 2026: Paige Estritori
Recent data indicates a significant rise in insurance premiums across Australia, with home insurance premiums increasing by 16% on average over the past year. Some insurers, such as Kogan, RAC, and Honey, have raised rates by over 30%, leading to growing concerns about affordability for consumers. - read more


Professionals Insurance Articles

Protecting Your Professional Income: Understanding Income Protection Insurance
Protecting Your Professional Income: Understanding Income Protection Insurance
Income protection insurance is a financial safety net for individuals who are unable to work due to illness or injury. It ensures that you receive a percentage of your income during times when you cannot earn a salary, helping you maintain your lifestyle as you recover. This type of insurance offers peace of mind by providing financial support when it is needed most, allowing you to focus on recovery rather than financial pressures. - read more
Tailoring Income Protection for Medical Professionals
Tailoring Income Protection for Medical Professionals
Income protection insurance is a vital safety net for individuals across various professions, designed to provide financial stability if one is unable to work due to illness or injury. This type of insurance replaces a percentage of your income, alleviating the burden of regular expenses while you focus on recovery. For medical professionals who often have high earnings and extensive financial commitments, this coverage is particularly important. - read more
The Importance of Professional Indemnity Insurance for Freelance Professionals
The Importance of Professional Indemnity Insurance for Freelance Professionals
Professional indemnity insurance is a vital safety net for freelance professionals. It is designed to protect individuals offering expert services or advice from claims of negligence or misconduct. Whether you're a consultant, designer, or engineer, having this insurance ensures that you're prepared for unexpected liabilities that could arise from your professional activities. - read more
How Cyber Insurance Can Protect You as a Freelance Professional
How Cyber Insurance Can Protect You as a Freelance Professional
In our digitally-driven world, cyber insurance has become an essential safeguard for anyone who operates online, particularly freelance professionals. At its core, cyber insurance is designed to help cover the risks associated with cyberattacks or data breaches, which can be devastating to both your reputation and your finances. - read more
Essential Insurance Solutions for Australian Professionals
Essential Insurance Solutions for Australian Professionals
In today's ever-evolving professional landscape, having the right insurance coverage is becoming increasingly important for Australian professionals. As more individuals step into freelance work and independent contracting, the need for tailored insurance solutions becomes crucial. Professionals in fields like IT consulting, engineering, and interior design face unique risks that necessitate proper protection. - read more


Your free insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Trauma Insurance:
An insurance that pays a lump-sum amount on the diagnosis of one of several critical illnesses or events