Shared insurance for common area: help please

Hello,

I have recently bought a house that is one of two on a block. There is no body corp in place.

My home is an investment property, so I have purchased building and landlord insurance through one insurer, while the other place is owner-occupier, so he has purchased a building policy through a different insurer.

The other home owner and I are now looking to purchase common area insurance for the shared driveway and fencing between our homes.

Because my building and landlord insurance provider doesn't offer common areas insurance, we have each gotten a quote (me through AAMI and him though Suncorp) - liability seems to sit at around $20 million for both and the premium (around $140-$150) is also comparable. The PDSs are almost identical.

1. Is there anything - such as inclusions or exclusions - that we should be looking for in these policies that we might not be aware of, or can we just pick one?

2. Is there an insurer or policy that come recommended in such a situation?

3. Both quotes we have received, talk about 'buildings' within their PDSs and also say:
"This product is designed to provide cover for small residential strata titled properties, community titled properties or residential properties associated with a body corporate or owners corporation. The policy will provide cover to buildings and common areas that are the responsibility of the body corporate or owners corporation for insurance purposes according to the relevant legislation in your state. You may also choose to cover any common contents under this policy."

This is a little confusing as we thought this was strictly insurance for the common areas not for any buildings - though the PDS talk quite a lot about buildings and fixtures. And both quotes have asked us to provide the details of each of our own homes (as is the quote I got has details of my house, and his quote has details of his house).

We really just need insurance to cover our common areas (driveway and fences) for accidental damage or in case someone injures themselves.

Any advice or recommendations would be most appreciated.

Thanks in advance!

 

Clarify with the agency but I think the "buildings" the PDS refers to would be buildings or parts of buildings held in common e.g. hallway apartments share or shared covered car park.

 

Do you think that's it @hobartchic? It's very confusing. I also just saw:

"Legal liability – what we do not cover
We do not cover legal liability caused by or resulting from:....motor vehicles."

Does that mean if someone gets hit by a car in the driveway they aren't covered? That's one of the main reasons we are getting this policy!

 

Like I said, just check with the insurer and make a note of the date, information and person you talk to in your diary if you are worried.

As for car accidents, if someone is hit, the driver is responsible generally and car insurance, MAIB and civil action would cover this.

 

Hi Tazcaz,

Might depend on state but it is pretty likely you actually do have a body corporate in place (legal definition - just because it is ignored doesn't mean it doesn't exist) but it is not compliant. There are often special rules for two lot properties.

There is another thread here somewhere covering this recently. Strata insurance could be cheaper and you then know you aren't missing anything.

What would worry me is not covering the strata responsibilities and consequential insurance exposure.

 

Hi @bunkai - I was told by the agent who sold it to me that there is no body corp in place. Essentially the guy owned the first house, renovated that and build a second place at the back. He'd only just had the separate titles come through before settlement.

Yeah I'm starting to think we should have gone down the path of strata for both houses, then I get separate landlord insurance but we've already purchased our separate building insurances now. I'm in the cooling off still but I think he's out of his. Might have to look at doing it in 12 months.

Do you happen to know where that thread is?

Would there be strata responsibilities even if we're not operating as a body copr and only have the driveway and a bit of fence in common?

 

We are assuming you are correct when you say it is strata. Check the contract. There is the possibility that it is subdivided.

Just get a refund.

I think we have found both threads