QLD: How is strata insurance shared in a two-lot scheme?

This article discusses two lot strata insurance premium contributions and how each owner’s share is calculated.

Question: Does each owner pay strata insurance as a percentage based on building size for our two lot strata?

We own a lot in a two lot strata. One building size is 148m2, and the other is 307m2. Are we required to pay strata insurance as a percentage based on building size?

On our schedule of lot entitlements, our contribution is 1:1.

But our interest is:

• 14 – neighbour
• 11 – me and my partner

Answer: This will depend on whether the building is a building, volumetric or standard format plan.

The Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011 regulates how premiums should be paid.

This will depend on whether the building is a building, volumetric or standard format plan.

The regulation stated below should answer the question:

52 Premium

1. The owner of each lot that is included in a specified two-lot scheme and is covered by reinstatement insurance required to be taken out by the body corporate is liable to pay a contribution that is a proportionate amount of the premium for reinstatement insurance that reflects—
   1. for a lot created under a building or volumetric format plan of subdivision—the interest schedule lot entitlement of the lot; and
   2. for a lot created under a standard format plan of subdivision—the cost of reinstating the buildings on the lot.

This post appears in the November 2024 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.