Question: We own one of two lots in a QLD duplex registered as a community titles scheme, and our insurer has significantly increased our premium. Is a duplex community titles scheme eligible for standard strata insurance?
Our duplex is registered as a community titles scheme with two owners, one for each residence. Our current insurer has significantly increased the premium, and we’re finding that many insurers won’t cover duplex buildings at all.
We’d have expected the current housing shortage to drive more duplex construction and therefore more insurance options, but that doesn’t seem to be the case. Any suggestions on how to find suitable cover would be appreciated.
Answer: Engage directly with a specialist broker or an insurer to better understand the reasons behind any declinatures.
A duplex registered as a community titles scheme (CTS) should have no inherent barriers to securing insurance. Where a property is correctly structured as a CTS, it is typically eligible for a standard strata insurance policy covering the building. This is broadly supported across the market and reflects the expectation that small schemes, such as duplexes, can be insured in the same way as larger strata properties.
Challenges can arise, however, in situations where the property is not registered as a CTS and is instead privately owned, or where other influencing factors are present. These may include higher-risk building materials, specific location exposures, or other underwriting considerations that fall outside an insurer’s appetite.
If owners are having difficulty obtaining cover, it can be helpful to engage directly with a specialist broker or an insurer to better understand the reasons behind any declinatures. This can provide valuable insight and help identify a suitable pathway forward.
This post appears in Strata News #792.
Sarah Mumford
BAC Insurance Brokers
E: sarahm@bacbrokers.com.au
P: 02 9360 2244
Leave a Reply