Insurance for Torrens Duplex Whole Building

Hello!

I am having an inordinate amount of difficulty in finding an insurance policy for my situation - I have trawled the internet and spoken to multiple insurers but, to my surprise, nobody seems to understand my situation which I thought would be somewhat common.

I am looking for a comprehensive home and contents insurance policy for my Torrens title duplex, with no strata arrangements.

I built the duplex a couple of years ago, and own & live in one of the two halves. I have sold the other half to someone else.

I want to be able to claim for my entire sum insured so that I am able to rebuild the whole building and restore the contents of mine that were damaged, particularly in the following case:

1. Assume that my neighbour (that lives in the other half of the building) is uninsured (perhaps their insurance lapsed without them knowing), and may have consumed alcohol.
   
   
2. The neighbour burns down their half of the duplex or something else terrible that requires the building to be rebuilt or significantly repaired.
   
   
3. The fault was not mine
   
   
4. Even though there may be nothing wrong with my half of the building, I can't live in a half-burned down, damaged or unsafe building, or mold-ridden or whatever.

So I want to be able to claim for my entire sum insured so that I can rebuild the building and restore whatever of my contents that were damaged (maybe smoke damaged from a fire next-door, or waterlogged from something)

The above case is in addition to the normal house and contents insurance aspects covering me for loss and damage to originating from, and to, my dwelling.

Some insurers said that they would only cover me for my half of the building. Another offered for me to take out a second policy against the neighbour's property but the neighbour would be the beneficiary. That's not a great solution because the neighbour could just take their payout and go buy elsewhere.

I can't be the only person in Australia with this kind of requirement! Perhaps I'm calling it the wrong thing?

Please help! Where can I find a policy to meet my needs?

 

All duplex's are typically considered a strata property. They may be exempt but the SP will at the very least insure the building so if LEFT burns down the house and RIGHT also loses their house the policy will rebuild for A & B. BOTH have a interest in the policy so neother L or R can insure it. This should have been addressed in the building construction and approval and completion. Ditto maintenance would be incurred by BOTH through the starta although its often ignored and shared.

So you are saying NEITHER half is insured ? Breach of mortgage covenant. Possibly x 2. You trust your neighbour wont burn down your house and they trust you. ....Doesnt matter who is at fault. It is who is insured. Insurance doesnt refuse cover due to fault excepting deliberate damage perhaps. They can refuse due to being uninsured or the valid policy owner. Its like my neighbour expecting me to insure their house. It illogical.If we share a buiding we would both make sure the starat insures it according to state law.

Is a Duplex Exempt from Strata Rules?

 

not if it has been subdivided into Torrens Titles. Separate Lots. with a Semi-attached building

and typically - separate services and independent of the adjoining lot apart from sharing a common party wall with an "easement for support" over that wall.

you have separate titles - you only own the building that you occupy - not the neighbours


i can see how the insurance company cannot understand why you want to insure the neighbouring property. - it's not yours to insure.

if you are worried your neighbour is not insured, because he, ---

??????

then maybe pay his insurance policy for him

 

Thanks bmc,

lol - I added that alcohol clause because I discovered in one of the PDSes I've been researching that if any damage was related to the consumption of alcohol then the insurer will not pay.
... and my neighbour does enjoy a drink or three.


And that's the issue I've been encountering - "I own the building I occupy - not the neighbours", but the 4 walls and roof of building I occupy keeps both me and my neighbour warm and dry, and my dwelling has a structural (and financial value) dependency on the wall and portion of roof that neighbour is supposed to look after.

So, I've found myself in a rather difficult position...

 

You would need to sue the other owner for any damage they cause to your property if they are uninsured or their claim is rejected.

 

Wonder who owns each side of the fire wall between dwellings and the half of the driveway etc. Where does his start and yours stop.

You are confusing title with the strata scheme elements of the building. Each title is for half but the dwelling is mutually owned. It is an interest. He can burn yours down and you can burn his down each through an accident. Nobody sues the other. The one policy governs any loss so both are protected. Same with maintenance. And if a tradie was injured on his property you may also be liable for the workers comp claim.

seek legal advice. That law firm link may be a suggestion. They descibe it well as "Owners in 2 lot schemes (and prospective purchasers of such schemes) must be mindful of these requirements. If the correct insurance policies are not taken out, any insurance taken out by an individual lot owner may be void as the insurance company providing that insurance may consider that the owner did not have an insurable interest because it is the Owners Corporation (rather than the Owner) who has the insurable interest."