This article discusses strata lot owner public liability insurance and clarifies that it is not mandatory but leaving it out carries risk.
Question: Is there any obligation for lot owners to have Public Liability Insurance in place for their lot?
Is there any obligation for lot owners to have Public Liability Insurance in place for their lot? If a resident is injured on Common Property such as a Garden area and the lot owner has no insurance, can they be sued for damages? The use is granted by the Council of Owners, but where does the lot owner stand?
Is there any obligation for the Council of Owners to request evidence of cover from all lot owners? As far as I can see, this is not addressed in the Act.
Answer: If the owner chooses to not take out insurance it is at their own peril.
There is no specific obligation.
The strata corporations insurance covers personal injury & property damage legal claims made against them by other parties including in the above examples (subject to the terms and conditions of the policy).
If the owner chooses to not take out insurance it is at their own peril. I do not believe the Act gives the strata corporation the power to enforce a requirement for the lot owner or tenant to take out insurance.
This post appears in the September 2021 edition of The WA 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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