Must admit I don’t agree with some of Cosmos comments.
The one I totally agree with is that the insurance is for the strata you have NOW not the one you would like.
My issue is that if you pay for a valuation for insurance purposes that is what the property should be insured for (not some future valuation). Strata regulations generally require a valuation every 5 year (QLD anyway) and in the intervening years the value is increased by reference to an inflation for houses that the insurance company use.
Also if you insure the strata for $8,270,000 and you have a total loss the insurance is obliged to pay you $8,270,000 but if the rebuilding cost more than that, that is the strata problem. If the rebuilding cost less the insurance will pocket the difference.
The insurance will reduce the claim is if the strata is under insured and then they will reduce the payment by the % that the Strata was under insured by.