Question: In a two-lot community titles scheme with freestanding houses, can each owner insure their own building instead of sharing a body corporate policy?
We have two freestanding houses on separate lots, divided by a covenant area (nature strip), and managed as a body corporate under a community titles scheme. There are no shared buildings, only shared easement areas. Are we obliged to share building insurance for the individually owned houses?
The property is a building format plan, which does not seem applicable. Our current policy describes the property as one unit block, even though it consists of two separate houses. Does this leave the houses underinsured, making claims unenforceable? Can I arrange my own building insurance?
Answer: Legislation requires the body corporate to hold one policy insuring both dwellings under the scheme.
As the Community Titles Scheme is a specified two-lot scheme and is registered under a building format plan, the relevant insurance requirements are set out in section 49 of the Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011.
Section 49 requires the body corporate to insure, for full replacement value, each building in which a lot is located, to the extent that the building is scheme land. This obligation applies even if the lots contain freestanding dwellings with no common walls.
This means:
- The body corporate must arrange a single policy of insurance that covers both dwellings.
- Lot owners cannot take out separate building insurance for their own dwellings, as this would not meet the requirements of s.49.
- The policy must provide for reinstatement as new and cover incidental costs such as debris removal and professional fees.
It follows that while the physical layout of the properties might suggest individual insurance is more appropriate, the legislation requires the body corporate to hold one policy insuring both dwellings under the scheme. However, it is important that the policy accurately describes the properties and that the sums insured reflect the full replacement value of both houses.
This post appears in the October 2025 edition of The QLD Strata Magazine.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
I have an apartment in a body corporate in Queensland. My hot water system ruptured (it is located in the kitchen cupboards) and leaked into my kitchen cupboards. I have landlord insurance but the landlord insurance says they are not responsible because the kitchen cupboards are part of the building and they are not responsible for covering building issues and this should be referred to the strata. My strata say their insurance does not cover “kitchen, bathroom and bedroom cupboards.” Surely the landlord insurance should cover kitchen cupboards as they are not part of the building but part of the contents. What are your thoughts ? I feel stuck !!!!
Can anyone help ????
Hi Steven
The following response has been provided by Tyrone Shandiman, Strata Insurance Solutions:
The definition of building under a strata policy is generally worded along the lines of: Building means buildings as defined in the Strata Legislation applying where Your Building is situated. Permanent fixtures such as built in cabinetry are considered part of the building and only insurable under a strata policy.
A strata insurance policy can’t provide coverage for a building that does not meet the requirements of the applicable legislation. In Queensland there are various regulations that apply to Body Corporates dependant on which regulation module your scheme is registered under, however the intentions are all the same. I have referenced the Body Corporate and Community Management (Standard Module) Regulation 2020 as an example.
Part 6 Insurance – Act Section 1898 (195) defines building as:
building includes improvements and fixtures forming part of the building, but does not include—
(a)temporary wall, floor and ceiling coverings; or
(b)fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
(c)mobile or fixed air-conditioning units servicing a particular lot; or
(d)curtains, blinds or other internal window coverings; or
(e)carpet; or
(f)mobile dishwashers, clothes dryers or other electrical or gas appliances not wired or plumbed in.
The above list of excluded items does not include built in cabinetry therefore the act requires it to be insured as part of the building under the Strata Insurance.
I own a unit in Runcorn, its a duplex but does not have a body corporate number, this was not done in 1998 when constructed.. I insure my rental and the other owner insures hers, is this legal. Insurance companies will not insure without a BC number as a total package.
When considering duplex properties, the approach to insuring them varies based on the property’s title. If the property is on a strata title, it is advisable to secure coverage through a Strata Insurance Policy. Conversely, if the property is not on a strata title, it can be insured under a home policy. In cases where the property shares a common wall, the optimal course of action is to insure it collectively under a singular strata policy.
Properties lacking a Strata Title are not aligned with the Target Market Determination for Strata Insurance. Consequently, insurers are unable to extend coverage to such properties.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
My duplex and the one next door share a common wall and driveway. The neighbour’s duplex is slightly uphill from mine and they have a downpipe on their property that does not drain into storm water but instead drains down the driveway onto my property causing quite a heavy stream of water and eroding my backyard and going into the property that backs onto my backyard. I am not one for complaining about small things but it is causing substantial damage. Any direction would be appreciated.
Hi Jan-Maree
The followng response has been provided by Chris Irons, Strata Solve:
Your first step, ideally, is a conversation with your neighbour about the situation. Remember there is a possibility they are not aware you are experiencing any issues, or the extent to which you are experiencing them.
After that, if the problem still remains and you are unable to get anywhere with your neighbour, you will need to look at the next steps. Ultimately you would need to have the matter resolved in the Commissioner’s Office if you cannot resolve it through other means: I would be strongly recommending you try to avoid that, because it will take a long time, cost money and will involve stress. Plus, any formal outcome will be on the public record.
Without commenting on the specifics of your situation, if an owner’s lot is contributing to damage to a lot or common property, or if they have not maintained their lot and it is causing damage to another lot or common property, they can be held responsible for the costs of that damage.
In my experience, duplex disputes are among the most challenging to resolve, because you have only the 2 parties and deadlock is commonplace. So my strong recommendation is to look for every possible way to resolve this situation without needing to initiate formal proceedings. It will benefit you in the long run, especially if you are going to continue to be neighbours.
Maybe try the initial conversation, see how that goes and then come back here to see what step 2 might be like.
This is general information only and not legal advice.
When a villa/unit is sold, whose responsibility is it to notify the Body Corporate?
Hi Jan
This Q&A should assist:
Question: Is there a legal time limit in QLD for a BCCM Form 8 to be issued once a body corporate property has been sold?
Would you kindly advise if it is OK to paint one share of a driveway only (duplex). We would speak to other owner just in case they wish to do so also. However feel they may not, would like to know if we can go ahead and do our share. We are able to define the section.
Hi Noela
This link should assist:
I want to make some changes to my lot. Do I need to ask the other owner?
We rent a duplex on Gold coast.. The body corp laws were done in 1994 when building was first built and we have sent a letter to the other owners in adjoining duplex requesting to update them with new laws.
We have sent 2 letters and are yet to receive a response after 4 months. . If they continue to ignore what are our options
Hi Mick
You indicate you are a tenant at the property. It would be best to address your concerns to your landlord or letting agent.
I own unit 1 & 2 of a duplex on one piece of land, I reside in one and rent the other out. There is a shared roof and driveway. What type of insurance should I have, I am getting different responses from different insurance companies and a different one again from Body Corporate Qld. Thanks Kylie
Hi Kylie
We have responded to your comment in the article above.
If a pipe leaks in the property through no fault on the lot owner, causing damage to walls , kitchen unit, floors . Who is responsible for payment of the excess on the insurance claim
I have just been told I need strata insurance after being in my property for 3 years. The 2 units are even on different streets ( as registered by council lot numbers). Therefore everything is seperate x – we don’t nor have to access driveways gardens etc. the only thing joining us is our garage walls. I was told when I bought the property @ no body corp”. I have been fully insured since moving in and there have been no issues. But duplex next door has just sold which has now raised the question of strata insurance from the new buyers conveyancer – mine never did mention this. My question – Is it satisfactory to just jointly pay fior building insurance only to cover both in the event if damage/fire. I don’t want to be caught up in other stuff if maintenance etc as these properties are otherwise independent of each other.
Hi Denise
Tyrone Shandiman covers this in the above Q&A: In a duplex, what are the ramifications when the other party will not contribute to insurance? Is it possible to insure the duplex independently by only paying the Insurance for your duplex?
Would like to know if there is any information on insuring duplexes that have their own personal pools?
We are a side by side duplex, with no common property (completely separate properties apart from the connecting wall in the middle.
We both have pools in our property and have found when trying to insure, that companies only see pools under strata as those that are in big building complexes for example, so it almost doubles the insurance premium compared with not have a pool.
Has anyone else had this issue?
We live in a duplex witha common wall. My neighbour has now decieded that he is going to put gardens on the footpath. Can he do this without my consent?
Hi Geoffrey
We’ve dealt with a very similar issue here:
QLD: Q&A Authorising Common Property Changes or Improvements
These are all very interesting topics.
with the first question, re; insurance for duplexes, would this also apply nationally, or are there different rules for each state.
with regards to what is covered by Body corporate, again is this a QLD only rule or to apply to each state.
Hi Lina
Legislation differs in each state. The information contained in this post is specifically related to QLD Legislation.
Frank H., good points. Buyer beware!
When buying, check with people who are liable for what they represent (like solicitors) not with sales / marketing lingo. It is also advisable not to refuse to do the body corporate search and have the report explained to you. The costs of such due diligence is small fraction of your total investment, and may uncover hidden traps – financial or personal – which you may not want to deal with.
If i had a dollar for each time i heard “we should have done this or that” or “I really did not understand that being an owner requires involvement” – I would be driving different colour Tesla each day ;-).
Education and knowledge is important in not having to do “crash course on strata” once you are committed [edit by admin].
Jana Koutova
UOAQ Executive Officer
I agree completely, even if it is a small scheme or a two lot scheme there are still some important points to confirm especially before you purchase. Knowing whether its a Standard Format Plan or a Building Format Plan will also give you a great head start on responsibilities of maintenance of the Body Corporate.
One issue that I see on a regular basis with the insurance in a two lot scheme is an issue with the name of the insured or sometimes there are even 2 separate policies and not one of them covers public liability. The Insurance must be in the name of the Body Corporate. A bigger problem arises when the insured in the Lot Owner selling, The policy must be cancelled as it can not be transferred, and the other Lot owner may not be able to do anything about it as they are not listed as an authorised representative.
Even if there are no records to search, obtaining this basic information is very important.