Many people assume claims costs rise mainly because materials are expensive or supply chains are disrupted. While those pressures have eased in some areas, a quieter issue is now having a big impact on claims outcomes: the shortage of skilled repair trades. In particular, a lack of tilers, bricklayers and other repair‑critical trades is pushing up both the cost and duration of claims, even where materials are readily available.

Delays cost money—even before repairs begin

When the right trades aren’t available at the right time, repairs slow down. That means:

• longer claim timelines,
• extended temporary accommodation or loss‑of‑use costs, and
• higher overall repair expenses.

In practical terms, time itself has become a material cost in many claims.

Why this is happening

The challenge isn’t chaos in the construction market—it’s tight capacity and rising complexity.

Key pressures include:

• skilled labour shortages in trades that must be completed in a specific sequence,
• localised “surge pricing” after weather or catastrophe events,
• growing compliance and approval requirements, and
• more complex claims structures, especially in strata and multi‑party properties.

Even if most trades are available, one missing specialist can stall the entire job.

Strata and complex claims feel it most

Properties with shared services, access restrictions or multiple decision‑makers—such as strata—are particularly affected. These claims often take longer to coordinate, attract more variable quotes, and incur higher professional and holding costs. As a result, insurers are seeing a widening gap between straightforward claims and challenging claims, with duration being one of the biggest cost drivers.

What this means for policyholders

For businesses and property owners, this highlights why:

• adequate sums insured matter more than ever,
• loss‑of‑rent and additional expense covers are critical, and
• early claim engagement and planning can materially reduce outcomes.

It also reinforces the importance of working with insurers and brokers who understand repair sequencing, contractor capability, and realistic timeframes.

A local pressure point

South‑East Queensland has become a particular hotspot, with major infrastructure and development projects competing directly with repair work for skilled labour—placing further pressure on 

claim timeframes.

Bottom line: Claims are still costing more—not because systems are broken, but because skilled people are scarce, jobs are more complex, and delays now carry real financial consequences.

If you’d like to understand how your policy responds to extended repair timeframes or increased holding costs, the team at Action Insurance Brokers is here to help.