No Body Corporate/Insurance on 2 lot block

Hello,

One of the properties I am looking at has 2 lots on the block and no body corporate set up.

From my research, body corporates are not required for blocks in Victoria with only 2 lots. Is this correct? The agent has also mentioned that there is no insurance set up for this common property. Is this necessary?

Thanks in advance

 

No body corp required unless 3 or more on the lot. However there is probably a commkn driveway which raises the question of what happens if someone trips and hurts themselves on the driveway and decides to sue. A jointly-held public liability insurance policy ( held woth the owner of the other dwelling) for the common parts would address this issue.

 

There might be some coverage of the common area in each of the individual insurance policies. The question regarding common property would/should have been raised at the time of taking out the policy.

I've seen it done that way before, but it is much cheaper to have a joint policy.

 

In Victoria, two lot subdivisions are not required to share their building and public liability insurance. But each owner must ensure that they each cover public liability insurance for the driveway, otherwise if there is an incident and they are uninsured, they could face massive liability and potential bankruptcy. Not worth the risk.

 

I am currently looking at a two-lot subdivision property. I am having trouble looking for insurance to cover this sort of arrangement. I understand that the insurance does not have to be in owners corp/body corp name. Is there any insurance company that you would recommend?

 

I use HWA for common property insurance on a two lot sub division in Melbourne.

 

Thanks. Do you know just cover the common property or with your building as well? The two-lot scheme is a bit of grey area when there is common property involved..

 

Just the common property, I have building and landlord insurance for the buildings themselves.