Block with 4 Townhouses (Shared Roof/Walls). Building Insurance/Body Corporate Questions

Discussion in 'Property Management' started by Campo246, 24th May, 2022.

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  1. Campo246

    Campo246 Active Member

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    Hello Everyone

    I purchased a "Townhouse" on a block on 4 last year in melbourne for 570k. When I bought not all units were sold yet so the whole body corporate arrangment had not been setup yet.

    As of last month the last unit has been purchased. At this stage the builder has taken out building insurance for a total sum of 900k for all 4 Units. Total policy was around $900 and it was split 4 ways between the 4 owners.

    At first glance this is too low? only a 200k~ Payout for each owner if something was to happen? Is this normal to be insured for this amount? I have contents insurance which is at $30k worth of valuables. Should I push for the builder to increase the cover amount?

    The other thing is, there is no "Body Corportate" Company managing the body corporate. All 4 owners get along and Im assuming we can manage repairs/maintinance ourselves. Do we need to have meetings and register anything? or can we just leave things as they are until something occurs and we all get together and have a discussion.

    Has anyone gone through this? Any Advice?

    Thanks
     
    Campo246, 24th May, 2022
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

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    The insurance the builder got will be for common property only (driveway etc). You need to get your own building insurance until the OC is activated.

    The Y-man
     
    The Y-man, 24th May, 2022
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  3. The Y-man

    The Y-man Moderator Staff Member

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    It can stay "inactivated" indefinitely AFAIK.

    It's the case for 2 of my units.

    Basically we have the common prop insurance (aka the "common driveway insurance") and we go our separate ways for building insurance.

    The Y-man
     
    The Y-man, 24th May, 2022
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  4. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 24th May, 2022
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  5. Campo246

    Campo246 Active Member

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    Hi Y-Man

    Thanks for your reply

    The builder emailed us the following

    "Hi Everyone
    I have arranged a strata policy insurance for the premises that would cover the building and common drive way. We donot have much outside the buildings to manage/maintain so i would suggest there is no need to engage a body corporate manager to manage the premises and obviously save a lot of management fee"

    I looked around initially and wasnt eligable to take out building insurance if I bought into a strata scenario. What now?
     
    Campo246, 24th May, 2022
    #5
  6. The Y-man

    The Y-man Moderator Staff Member

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    I have my units insured through RACV - maybe give them a call?

    The Y-man
     
    The Y-man, 24th May, 2022
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Also, get the insurance policy statement from the builder. See what is in there exactly.

    The Y-man
     
    The Y-man, 24th May, 2022
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  8. Vicki S

    Vicki S Well-Known Member

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    I am curious about this too in NSW we have detatched strata title houses no common areas except for meter box which has to be in the one place apparently. I was unable to source an insurer that would allow us to insure separately even though we are allowed to by law,

    Anyone here been able to get separate builiding insurance for each property in this scenario in NSW?
     
    Vicki S, 27th May, 2022
    #8