We have been asked ‘What insurance do I need for a strata property?’ Leonie Milonas, PSC Property Lync Insurance Brokers provides the following response.
Question: What insurance do I need for a strata property? We are looking at purchasing a property that is part of strata that was formed pre 1985.
We are looking at purchasing a property that is part of strata that was formed pre 1985.
There are 2 houses on the block and we understand we only own 100% of the house and 50% of the surroundings.
I’m confused. What insurance do I need for a strata property?
Also, what are we liable for? e.g. neighbours fence blows over, tree on their property falls down, they fall over a tree root and injure themselves etc.
Are we able to access their property as we own half of it and vice versa?
I would appreciate any advice you can give as we know nothing about this type of strata and need to be clear before we purchase this house.
Answer: This depends on whether it is a Survey Strata you’re purchasing or strata single tier.
The answer depends on whether this is a Survey Strata you’re purchasing or strata single tier.
If it’s Single Tier pre 1985 strata plan, then the back and front yards are likely to be common property and this includes any structures, like garden sheds or carports etc. Without the strata plan it’s difficult to comment.
In terms of insurance, if it is a single tier pre 1985 with back and front yards as common property, you’re best to purchase strata insurance, which then also includes common property insurance including legal liability insurance.
As far as access to yards etc. again it depends on the strata plan and further whether an automatic merger has occurred and if that did or didn’t extend to the yards. Older schemes most yards are common property pre-1985.
I would advise you to speak to a consultant about the strata plan boundaries as this will answer your question specifically. Landgate may be able to assist the boundary question specifically in this instance as well.
This post appears in Strata News #195.
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The above is a general response only to questions asked, not taking into account personal circumstances and is not legal advice. See General Advice Warning.
General Advice Warning
This advice has been prepared without taking into account the client’s objectives, financial situation or needs.
Because of that, before acting on the above advice, the client should consider its appropriateness (having regard to their objectives, needs, and financial situation).
If the advice is related to the acquisition of an insurance contract, the client should obtain a Product Disclosure Statement relating to the product before deciding whether to acquire it.