Question: I own a rear duplex that shares a garage firewall with the front duplex on the block. Is the home part of a strata title complex for the purposes of home insurance?
I own a rear duplex that shares a garage firewall with the front duplex on the block.
I own my lot including the driveway to the front of the block. The front duplex and I have no common areas.
The Certificate of Title states “Lot of 2 of Strata of strata plan XXXXX ….. together with a share in property (if any) as set out on the Strata Titles Plan”.
When I’m applying for home insurance, multiple insurance companies state they don’t insure strata-title buildings, however, they do cover contents.
Is the home part of a strata title complex for the purposes of home insurance?
Answer: Insuring both buildings and common property areas under one strata insurance policy is the only way to ensure that you are both complying with the STA and all your insurable assets.
As a general response to your query, your strata and lots may be considered under the Strata Titles Act 1985 as a Single Tier Scheme. The only way to properly confirm this is by reviewing your strata plan and checking your boundary definitions, however if this does apply, this may enable you and other owners to insure your buildings within your Lots separately. You should verify this first, before you decide to do this. If you do both elect to insure separately, then for insurance purposes generally, you should advise your insurers when seeking quotations for your building by saying that it is not part of a strata as both owners of the duplex have agreed to insure separately as per your rights under Schedule 2A clauses 53A-53E of the Strata Titles Act (STA).
The only issue is what is common property under your strata plan, such as the driveway and the fence along such, but as we do not have a copy of your strata plan we are unable to advise you regarding this. It is recommended that any insurer includes the driveway, services under such and the fences under their policy, but this needs to be clarified in writing by the insurer. Some insurers will not be willing to cover the driveway and fences along a common property driveway. You would need to consider common property insurance.
Insuring both buildings and common property areas under one strata insurance policy is the only way to ensure that you are both complying with the STA and all your insurable assets. You should refer to the STA for completeness or contact a strata consultant to understand better your obligations.
This link directs you to the Strata Titles Act 1985 WA: Strata Titles Act 1985 – refer to Schedule 2A Part 5 Insurance from clause 53A, as referenced above Lots in a Single Tier Strata Scheme.
Disclaimer
This email response is for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a strata consultant or legal advisor and further a qualified insurance advisor.
PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491.
This post appears in the October 2022 edition of The WA Strata Magazine.
Leonie Milonas
PSC Property Lync Insurance Brokers
E: leonie@lyncinsure.com.au
P: 1300 127 503
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