Hello, I've just bought one of two properties on strata title with no body corp in place (the vendor owned both properties, sold one to me and he will stay living in the other). I'll be using my property as a rental for a while and currently comparing EBM and Terri Scheer for landlord and building insurance (as recommended on here) but also needing common areas insurance that will cover the driveway shared by both myself and the other owner. It's just the driveway, which he estimates would cost $35,000 to completely replace - but also public liability in case anyone hurts themselves on the driveway. We'll be sharing the policy - just paying half each. TS and EBM don't offer this kind of insurance. He's found a quote through Suncorp and me through AAMI but just wondering if anyone else in a similar situation has an experience to share or a recommendation. Seems pretty straightforward, but I might be missing something. Also, I know there's a fair few threads on here about EBM v TS, so I won't start a new one, but if anyone has anything to sway me either way when you reply about the common property insurance, I'm all ears Thanks in advance!
Hi @TazCaz , odd no one has responded earlier. I went through similar, if the neighbour and yourself agree, you can both save a lot if you combine all insurance for both buildings and common areas under the one strata policy. E.g. When I compared AAMI ($1133.13pa) vs GIO ($958.51pa) GIO will also offer a 15% discount for landlord insurance (for inside your building etc) Failing that they'll provide basic common area cover, have your own separate building policies
+1 I'd just get one policy and split the cost - it will probably be cheaper and you don't have to hold the risk of there being any "gaps". I think that you will find that there technically is a body corporate in place.
Hi @WestOz - sorry to rehash an old thread - how did you decide which strata policy to go with? I am currently in a cooling off period with Terri Scheer (widely recommended on here) for building + landlord, so considering revisiting my insurance to get a combines strata with the other owner and then a separate landlord insurance. Seems less clunky than 2 x building, 1 x landlord and 1 x common areas. As I'm just starting to research this - wondering if there's any insight I can garner from your research? I'm in Tasmania. Also, did you have to get separate contents insurance? I just read that the strata insurance doesn't cover contents. I need landlord and the other owner is an owner occupier - so I don't want to upset the apple cart by suggesting we replace the current 2 x building, 1 x landlord (and then get one common areas) - to replace with 1 x strata, 2 x contents and 1 x landlord!
Looking into this now @bunkai - as I mentioned in a reply below, I'm just worried about causing unnecessary hassle by swapping the current arrangement of 2 x building, 1 x landlord (and getting a common areas insurance) with 1 x strata, 2 x contents and 1 x landlord. Who comes recommended for strata insurance (just two properties, one shared driveway, in Tasmania). And I really don't think there is a body corp in place. The other owner owned both places and sold one to me - the separate titles only came through a few days before settlement. What makes you think there would be a body corporate in place? How could I check?
The body corp is there by default, it just probably means none of the required meetings were held given there was one owner. I bought into a complex with the same scenario - you probably mean there is no strata manager in place? This is common when one owner holds all titles in a strata complex. I own 2 out of the 3 units in my complex and I decided to employ a strata manager to ensure all the responsibilities of the body corp were attended to. It can be a pain to deal with another owner if they have no interest in co-managing the complex. I use CHU for my strata insurance (www.chu.com.au) and yes, you will definitely require it. Another company to check out is CGU.
Thanks for the clarification @Andrew Hancock - I just called a couple of insurers (not yet the two you recommended) and they said because our properties are on separate titles then they can't offer strata insurance. I've called the Land Titles Office and they say yes, they are on separate titles but the whole block falls under strata and is therefore ok for strata insurance. Have you encountered this at all? Essentially this is just a block, not a complex, that has been divided into two titles. Just the two houses and a shared driveway. No pools, lifts, secure entry etc. So we're just trying to figure out how to best insure that driveway in case anyone trips and cracks their head and decides to sue. Any ideas? Any if we are both happy to manage our own places and have the insurance for the driveway, is there any need to have an active body corp/strata manager?
It sounds like there is some misinformation somewhere here. You can have separate titles on a strata titled property (this is the usual case) but if the properties are torrens title or freehold, then it's not strata. What does the title of the property you hold say? If they are just physically attached, that doesn't mean it's strata and vice versa. It sounds like you need to ascertain exactly what sort of title you're holding before you find out what sort of insurance you need. You can still have a shared driveway physically, but there will be a boundary somewhere if it's not strata. If the LTO is saying it's a strata complex then perhaps the insurance company is confused? They may be thinking you're looking for insurance for the individual titled buildings which is separate to the strata insurance needed to cover the common property. This can also include piping and essential services to the 'complex' as well as the building itself. Often, you won't be able to get building insurance for example via TS/EBM or similar on a strata titled unit as the building is supposed to be covered under strata insurance. This being the case, technically you'll need a sinking fund for ongoing maintenance which will require an administrator and management of funds. You can see how it gets complicated, even with only two properties - what if he sells and the new owner wants it all done properly? Or what if the driveway breaks up and needs replacement...can you guarantee he'll front up the cash? What if his roof is damaged in a storm and he decides he wants the body corp to pay for it? Is he willing to go halves in the strata insurance? Is it even half? You will have different allotments depending on the title itself. I set it all up so it's costing only around $160 a quarter that is admin and some maintenance. Anything major will be struck under a special levy.
Thanks for the detailed reply @Andrew Hancock. I think the confusion is indeed with the insurer I spoke to. The LTO said that overall both properties sit on a strata plan, and that each of our two houses is on a separate title. The only thing we 'share' are the common driveway and the fence that runs alongside this. The other owner has managed to get a strata quote from Suncorp that covers both houses and the common property and I'm just about to start reading through the PDS. From my understanding we'd each need to get contents insurance (his will be more than mine as he is an owner-occupier, where I'll just need to cover fixtures) and I have my current Landlord Insurance with TS. I also have my building insurance with TS, which is significantly more than half the strata insurance - so I'll have to see how they compare in their inclusions. I'll also give CHU and CGU a call as you suggested. Is there any reason you did suggest them? I know TS and EBM are the recommended insurers for landlord, but not sure about strata - and also not sure if I should be leaving my current building insurance with TS to go with another insurer!
@TazCaz - your property title should be shown as Lot X SP 123456, the other lot would be Lot Y SP 123456 & common property Lot Z SP 123456. Each has its own title. If it is not strata then it would be Lot X DP 123456 & Lot Y SP 123456.
My thought here is that it is best to avoid generalisations - you should have the strata plan in the your purchase contracts. Are the above definitions of common property on that document? You wouldn't want to find out that after paying yourself to replace your roof - the strata was actually responsible and you have to pay 50% of your neighbours There doesn't appear to be any provision for owners to individually insure in the Tassie legislation. Even for two lot schemes as is possible in other states. Body Corporate - Strata Schemes I've used CHU but don't have any particular feedback except that they also now offer contents which is convenient in terms of avoiding any potential "gap".
