Our small strata scheme has ageing flat tin roofs and a low maintenance fund balance. Can a by-law make each owner responsible for their roof and building insurance? The strata company will look after the common driveway.
I'm a councillor on a 7-unit site. Our strata company has insurance on the roof and building. Our units are aging, as are our flat tin roofs. Can we create a by-law that assigns maintenance responsibility for each lot's building and roof, and assigns insurance to the lot owner? The strata company will look after the common driveway. There is nowhere near enough in our strata maintenance fund to look after all roofs.
No. A built strata cannot transfer roof and building insurance responsibility to individual lot owners with a bylaw, as this is a mandatory statutory duty of the strata company.
In Western Australia, a by-law cannot transfer responsibility for the roof or building insurance to individual lot owners if the scheme is a built strata (i.e., the building sits across the lot boundaries). The Strata Titles Act 1985 (WA) (the Act) requires the strata company to insure the building and all structural elements, including the roof.
Why the strata company must insure the building
Under section 97 of the Act, a strata company for a built-strata scheme must take out insurance for:
- the building (including the roof, walls, foundations, and structural elements)
- fixtures and improvements
- damage from events such as fire, storm, and impact
- public liability for common property
This is a mandatory statutory duty. A by-law cannot override or remove this obligation.
Why individual owners cannot insure their own roofs
Even if each owner agreed, the law does not allow:
- splitting the building into individually insured portions
- requiring owners to insure their own roof or structural components
- limiting the strata company's insurance to only the driveway or common areas
Private insurance policies also cannot replace the strata company's building insurance because:
- insurers will not insure "part of a building" where the structure is shared
- claims become unworkable when multiple insurers cover different parts of the same building
- the Act requires a single, scheme-wide building policy
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Most people find Strata to be a dry subject. Talk to Luke about Strata Legislation and you will soon see how enthused and excited he becomes about the topic. With over 20 years in the industry providing Strata Management and consultancy services. Luke owned and operated his own Strata Management business here in Perth for over 10 Years as well as being the state lecturer in Strata Management at Central Tafe at that time.
Educating people on Strata Title has been a passion of Luke’s delivering seminars on a regular basis for the last three years and now regular webinars since COVID-19.
In his spare time Luke’s passions are family, fishing, fine dining and football (West Coast Eagles). He also likes to volunteer assisting Perth’s homeless community.
Luke is a regular contributor to LookUpStrata.
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