Question: Eleven houses are under an owners corporate agreement, with common land and a road. Are we required to insure our house with the owners corporation’s insurer?
Eleven houses with different uses are under an owners corporate agreement because there is common land and a road. We have to have owners corporation insurance for the common areas, but are we obliged by the legislation to insure our individual houses with the same insurer?
Answer: The owners corporation can, by unanimous resolution, decide that individual owners are responsible for insuring their own dwellings.
Section 61A of the Owners Corporation Act 2006 addresses situations involving single dwellings.
61A Insurance for multiple single dwellings on a plan of subdivision
An owners corporation on a plan of subdivision for multiple single dwellings with common property may, by unanimous resolution, resolve that the lot owner of each single dwelling is responsible to insure their lot.
However, it is important to emphasise that these dwellings must be on a plan of subdivision, and the owners corporation is responsible for insuring any common areas, such as roads, which will also require public liability insurance.
This post appears in the April 2024 edition of The VIC 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.
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