Insurance for triplex - separate or all under 1 strata policy?

I own 3 strata titled units in a triplex (i.e all of them). Currently, each unit is insured separately for the building, and the common property is insured under another policy, meaning that there are 4 policies in total (excluding landlord insurance).

The insurer has advised me that they can insure all under the one policy (i.e. bring them all under the strata policy).

It will save me about 40% in insurance costs than insuring them seperately. Is this the usual way it's done? I figure I might have insured them the least cost effective way by going seperate policies (although they are all with the same insurer).

What do others do when you own all the units in a small complex? Insure separately or under strata? Just want to make sure there are no holes if I insure them all under 1 strata policy.

 

Talk to a broker - at least they're independent of the insurer.

Personally, I would consider it one building under a single policy for building insurance (including common areas - paving, fences, roof, drainage etc)and individually for LL contents (kitchens, finishes etc).

 

Generally it would be advantageous to have the whole building and common property insured under one policy. If you wish to have tenant-related risks insured then they would be individual for each unit.

 

Imagine the drama is there was a fire. Unit one if burnt down, Unit2 partially damaged and Unit 3 water damaged. Three or even 4 claims.

One policy and its one claim. And saves 40%. It is regulated as a strata building and in theory you could sell off one. A buyer would expect the building to be insured on this basis. The most relevant issue is whether you have insured for replacement based on how the policy covers clearing site and similar acts.

Then a LL (strata) policy for each. It excludes the building elements., unlike say a house LL policy

IMO I would be calling Brett

 

We have a duplex, 5 lot of townhouses and 6 lot of townhouses.
It’s much simpler and cheaper to insure as a group and this is what we do.
Also, your not doubling up on costs.
Say contents for any or all of the units are covered for 30k, you don’t have to specify an individual unit to cover, it’s unlikely all units will claim at once so your covering all bases at a lower cost.