WA: Q&A Strata insurance requirements – What do I need?

We have been asked about strata insurance requirements in Perth and other areas of WA. What strata insurance does your strata scheme need?

Table of Contents:

• QUESTION: Is there any obligation for lot owners to have Public Liability Insurance in place for their lot?
• QUESTION: Is strata insurance for small strata schemes in WA only available from a hand full of suppliers?
• QUESTION: Who can be held liable in a Bullying and Harassment case by a tenant in a Strata development? Does the COO need to take out an insurance cover against such claims?
• QUESTION: If a strata company cancels its insurance in March 2016, can it still lodge a claim against that policy if legal action is commenced within the statute of limitations for something that occurred prior to March 2016?
• QUESTION: A lot owner is challenging our strata insurance valuation as being too high
• QUESTION: Does the insurance policy require being voted for at an AGM, or is it the responsibility of The Council of Owners? What are our strata insurance requirements in WA?
• QUESTION: How far ahead should insurance policies cover? In our AGM in November we will be asked to vote for a new policy that will cover November 2021 – November 2022. Are these WA strata insurance requirements?
• QUESTION: We have 4 commercial units in our strata property in Perth. Our insurance has come back extremely high as one of the units is occupied by a high risk business using highly flammable materials etc. Should we all contribute equally to the cost of the insurance?
• QUESTION: How many years ahead does a quote for insurance renewal need to be tabled at an AGM?
• QUESTION: How much should our strata complex be insured for? The current insurance level essentially equates to the value of each unit times the number of units but should risk of damage be taken into account?
• QUESTION: Can you please highlight any specific changes or strata insurance requirements in WA for where the strata company has mixed use, commercial and residential use.
• QUESTION: I’ve heard there is only one company in WA that will insure Survey Strata groups of units? Is this correct?
• QUESTION: I live in a small strata scheme. I’ve found a cheaper quote with a lower excess. Am I able to insure my unit separately with a different insurer to the other lot owners? What about the common property?
• QUESTION: We have been with the same strata insurance company for 10 years. As a lot owner, do I need approval from the other 3 owners to call insurance companies and gather some comparable quote?
• 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. What are our particular strata insurance requirements in WA?

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.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the September 2021 edition of The WA Strata Magazine.

Question: Is strata insurance for small strata schemes in WA only available from a hand full of suppliers?

I’ve been told by an insurance broker that unless it is a high rise multi million dollar property, insurance for small strata schemes in Australia are only available from Longitude, QUS, Strata Community and CHU.

Is this true? Otherwise, what other insurers will provide cover to a small complex of 6 2×1 single storey units in WA?

Answer: There are other direct insurers in the market who will provide quotations and insure smaller strata schemes.

Strata specialists insurance underwriting agencies, include those listed above, along with Flex Insurance, AXIS Underwriting and Strata Unit Underwriting, are among the mix. There are other insurance underwriting agencies that have strata insurance products, but they specialise in specific areas only.

There are other direct insurers in the market who will provide quotations and insure smaller strata schemes.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

This post appears in Strata News #508.

Question: Who can be held liable in a Bullying and Harassment case by a tenant in a Strata development? Does the COO need to take out an insurance cover against such claims?

Answer: Under the Strata Titles Act there is no relationship between the strata company and a tenant.

Who can be held liable in a Bullying and Harassment case by a tenant in a Strata development?

Brian Rulyancich:

Under the Strata Titles Act there is no relationship between the strata company and a tenant. The relationship exists between the owner of a lot and his or her tenant in this instant the tenant as the occupier of the lot is contravening the following by-law:

Schedule 2 – Governance item 4 Behaviour of owners and occupiers.

An owner or occupier of a lot must be adequately clothed when on common property and must not use language or behave in a manner likely to cause offence or embarrassment to an owner or occupier of another lot or to any person lawfully using common property.

The strata company would need to issue the appropriate notices to the owner of the lot detailing what the behaviour of their tenant and what needs to be done to rectify the situation. If it continues it go to SAT for an order and possible fine.

Also due to the nature of the incident it may also be a Police matter.

Does the COO need to take out an insurance cover against such claims?

Tyrone Shandiman:

Strata Insurance policies provide covers to assist a strata corporation in the event a bullying and harassment claim is made against them.

The following sections in most strata policies should be considered by the strata corporation:

• Legal Defence Expenses covering Legal fees, costs, and expenses incurred in legal proceedings initiated against the strata corporation. It should be noted that this cover is limited to the costs associated with defence costs only and does not extend to cover settlements, judgements or damages. Cover under this section is not an “open cheque book” and a claim is only indemnified if the strata corporation can demonstrate there are reasonable prospects of a successful defence.
• Office Bearers Liability insurance which covers claims made against office bearers in the event a legal claim for bullying & harassment. This section extends to both defence costs and settlements, judgements or damages.;

The Strata Corporation should seek advice from their insurance adviser on cover available for bullying & harassment claims in their strata policy if they believe their cover is specifically required for this risk exposure.

Brian Rulyancich
StrataTAC
E: [email protected]
P: 0428 970 067

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the July 2021 edition of The WA Strata Magazine.

Question: If a strata company cancels its insurance in March 2016, can it still lodge a claim against that policy if legal action is commenced within the statute of limitations for something that occurred prior to March 2016?

Answer: There may be no limitation on how far back you can lodge a claim

It does solely depend on the policy terms and conditions. If the policy in 2016 was an occurrence policy wording, and it covers events that occurred during the policy period, then there’s no limitation on how far back you can lodge a claim. As an example, if you have a public liability incident where someone has slipped and fallen over in 2016, and they’ve had some complications five years later, and they decide to sue the Owners Corporation, the policy enforced at the time would be the policy that you seek to take cover for.

There are other sections within a strata policy, which is a claims made policy. A good example of a claims made policy is the office bearers liability section, and the legal defence expenses section. Those sections say that if you had a claim in 2016, the policy enforced today, the day of notification is the policy that responds.

You’d need to seek advice from your broker or advisor on which policy to specifically look for. Just be mindful that if you’re looking at the claims made policy, so today’s policy, you may have some disclosure issues if you fail to disclose a 2016 incident that you were aware of.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in Strata News #481.

Question: A lot owner is challenging our strata insurance valuation as being too high

One of the owners in our group is challenging our current valuation as being too high. He believes properties here in WA haven’t risen in value for several years.

Our insurance broker obtained quotes from a range of insurers and we (the council of owners of a self-managed strata group) believe we have obtained a good deal. It would cost more to get a full valuation than if we just paid the extra suggested in the current valuation. This would be around $60/unit/year. Is this a fair response to this owner?

Answer: Ensure you’ve demonstrated that you’ve done your due diligence.

As a strata Corporation, the best way to overcome any challenge by an owner around whether you’re doing the right thing is to ensure that you’ve demonstrating that you’ve done your due diligence.

A strata Corporation should have a valuation done for the building, which would be the basis on which you insure the building for. If you’ve got a valuation, and an owner is challenging the valuation, what I would want to know as a committee member is ‘Where are your workings and who have you consulted that has a higher level of qualification?’ then ‘Who has the committee consulted?’, So that’s the first question I’d want to know.

If there’s no valuation, I think it would be a fair and reasonable thing to get a valuation done. For a property with 12 lots, I’ve seen valuations, through companies like Leary & partners. They come in at around the $500 to $700 mark. If you don’t have a valuation, do your due diligence and get one done.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the May 2021 edition of The WA Strata Magazine.

Question: Does the insurance policy require being voted for at an AGM, or is it the responsibility of The Council of Owners? What are our strata insurance requirements in WA?

Answer: The Strata Titles Act 1985 (STA) s127(c), outlines the matters for an AGM.

The Strata Titles Act 1985 (STA) s127(c), outlines the matters for an AGM.  Which includes presentation of copies of insurance certificates and schedules for Required Insurance as per the STA requirements.  

At the AGM the owners give direction to the Council how they wish to insure the buildings after the required and desired building coverages has been considered.

Where there is a strata manager involved,  they will arrange renewal documents to be sent, obtain quotes and arrange a valuation etc. if required and send to the Council seeking instructions and approval from them.    The Council has the authority from the General Meeting to make these instructions to the Strata Manager or in some cases directly with a broker or insurer, if a strata manager is not involved.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only and is a general response only. It is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. Before you act you should seek specific advice by consulting with a qualified insurance advisor, a strata consultant or seek legal advice.

This post appears in the March 2021 edition of The WA Strata Magazine.

Question: How far ahead should insurance policies cover? In our AGM in November we will be asked to vote for a new policy that will cover November 2021- November 2022. Are these WA strata insurance requirements?

Answer: Generally an insurance policy is issued as a 12month policy, which expires at 4pm on the expiry day.  In advance you may ask an insurer to extend your insurance renewal by a few months, with some insurers not issuing policies beyond 18mths.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only and is a general response only. It is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. Before you act you should seek specific advice by consulting with a qualified insurance advisor, a strata consultant or seek legal advice.

This post appears in the March 2021 edition of The WA Strata Magazine.

Question: We have 4 commercial units in our strata property in Perth. Our insurance has come back extremely high as one of the units is occupied by a high risk business using highly flammable materials etc. Should we all contribute equally to the cost of the insurance?

We have 4 commercial units in our strata property in Perth. Our insurance has come back extremely high due to the fact that one of the units undertakes high risk business using highly flammable materials etc.

Is it correct that we should all pay the same amount towards the insurance? Or can the business that is conducting high risk work pay the higher amount?

Answer: The strata corporation is able to adjust the premium payable by a lot owner that fairly represents the proportion of premium payable attributable to activities carried on the owner’s lot.

Section 98 of the Strata Titles Acts 1985 states:

(1) If it is reasonably necessary in order for a strata company to obtain the required insurance on reasonable terms, the strata company may give written notice to a member of the strata company requiring the member to …… (c) to pay a specified amount to the strata company within a specified period, being an amount equal to that part of the premium payable by the strata company for the required insurance attributable solely to the risk associated with something within the member’s control.

It follows, the strata corporation is able to adjust the premium payable by a lot owner that fairly represents the proportion of premium payable attributable to activities carried on the owner’s lot.

For example, if a building insurance premium would normally cost $3,000 but due to a high hazard activities carried out in one unit the premium is $5,000, the strata corporation may require that lot owner to pay the $2,000 premium difference in addition to their standard insurance contribution.

We would recommend the strata corporation seek advice from an insurance broker to assist in demonstrating the premium component attributable solely to the risk associated with something within the member’s control.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in Strata News #458.

Question: How many years ahead does a quote for insurance renewal need to be tabled at an AGM?

How many years ahead does a quote for insurance renewal need to be tabled at an AGM?

At our AGM in November 2019 the insurance quote was tabled for the policy commencing in Nov. 2021. Is this standard practise? Are there conditions that make this legally enforceable?

Answer: An Insurance policy renewal is issued for 12 months generally.

An Insurance policy renewal is issued for 12 months generally.

Example:

• Inception date: 1st November 2020
• Expiry Date: 1st November 2021 expiring at 4pm

In respect to any other insurer quotation for the same current covers these are quoted for the same date period, unless the Owners have decided to extend their expiry date generally for financial reasons.

In terms of quote issuance with an inception date commencing beyond 12 months this is unusual and generally would not be honoured by insurer. The normal practice for most insurers is not to issue a quote before 30 days prior to the expiry date, as circumstances relating to that risk can change.

In some cases indication quotes may be issued but this generally only occurs in new developments where budgeting is required.

Quotes generally remain current for 30 days only and any enforceability of that quote is a decision of the insurer, as they reserve the rights to honour a quote issued by them, especially if the quote falls outside of the quoted period.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #418.

Question: How much should our strata complex be insured for? The current insurance level essentially equates to the value of each unit times the number of units but should risk of damage be taken into account?

We are located in Perth, WA. How much should our strata complex be insured for? Should a proper valuation be conducted to determine the risk of damage and the value required to be covered for the risks? The current insurance level essentially equates to the value of each unit times the number of units.

• Our strata complex comprises conjoined 2 storey townhouses
• The complex is a number of separated units in blocks of four and two units

Answer: The strata insurance requirements in WA and all states around Australia is that the property is insured for full rebuild value

The strata insurance requirements in Perth, across WA and all states around Australia is that the property is insured for full rebuild value. The rebuild value can sometimes be more than the sale value of the units, but really when it comes to valuation of the property that really falls within the remit of a professional quantity surveyor. The best way to ensure that you’re comfortable with sum insured is to seek the services of a quantity surveyor to provide a recommendation on the sum insured for that value to make sure that you comply with the legislation.

How often should this be done? In Queensland, it’s every five years. This is a requirement by law. In other states, there’s no requirement by law. In New South Wales, it used to be five years, but that was also repealed in the 2015 legislation.

Really look at the value of the property. That’s a good start. If it’s a huge property with hundreds of lots, you might want to get one every few years because insurers will automatically index the premium by, say, 5% and when you’re dealing with large sums of money, if it’s over indexed, it might mean that there’s a cost benefit in getting more regular valuations. Five years is what we would recommend on properties, but if there’s no legislation obviously, then it really is up to the committee to determine if they’re comfortable with the valuation, and if they’re not, then they should get it re-valued.

We’ve got properties that haven’t had a valuation for 10 or 15 years and the insurers apply to 5% indexation but the actual cost of rebuilding was only ever increased by 1% over those years, and there’s been a major reduction in the sum insured because the valuation has been bought back into line with what the CPI or indexation actually was.

When we are doing a renewal, we look at whether we think it would be beneficial for them to get a valuation. One of the things we do is we keep all of our valuations on record, but whenever we provide a renewal our Statement of Advice specifically talks about valuations and when you should consider them. From our perspective, whenever a client gets one of our documents we actually raise that and remind lot owners of their requirements to get valuations and also just discuss and talk about the fact that you should consider a valuation if you’re not sure about the sum insured.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129

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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the October 2020 edition of The WA Strata Magazine.

Question: Can you please highlight any specific changes or strata insurance requirements in WA for where the strata company has mixed use, commercial and residential use.

Can you please highlight any specific changes or strata insurance requirements in WA for where the strata company has mixed use, commercial and residential use, i.e. can we hold a joint policy, for instance, or require separate ones for commercial residential areas of common property.

Answer: Within the act, from my understanding, it doesn’t actually differentiate like that.

Within the act, from my understanding, it doesn’t actually differentiate like that.

Insurances comes under two areas. Section 97 required insurance, and another section for specifically single tier insurance. So if you read through what the Act requires, it just basically states that you must insure for the replacement value for your insurable assets and obviously, for public liability insurance. It doesn’t provide a difference between mixed use commercial or residential, other than when it comes to things like internals like proprietors, fixings and things like that. Commercial is a little bit different.

The question really is around can something different be done with the insurance arrangements. There are a mixture of different arrangements that we can do, and brokers around the country can do. It really just depends on the specific circumstances of that scheme as to what we can do.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #410.

Question: I’ve heard there is only one company in WA that will insure Survey Strata groups of units? Is this correct?

Answer: There is a small number of insurers who will consider insurance for Survey Stratas Community Property (CP).

This is incorrect. There is a small number of insurers who will consider insurance for Survey Stratas Community Property (CP). However, where the individual Lot buildings (some or all) are also insured, this also changes what insurance options are available to you.

You would need to seek insurance advice on what options are available to you.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #380.

Question: I live in a small strata scheme. I’ve found a cheaper quote with a lower excess. Am I able to insure my unit separately with a different insurer to the other lot owners? What about the common property?

I am an owner/occupier in a group of 4 on a Strata Plan in Perth, Western Australia. The units were built in 2008, they have a common driveway with units 2, 3 and 4 and each unit as adjoined to one another with a common cavity wall. The group has always been insured through a broker and I have always found the policy to be high compared to what I used to pay for a much larger home a few years earlier.

We also pay a $500 excess which I strongly object to. I have obtained a quote from a local WA insurer that comes out approx $600 cheaper with the same excess or $431 cheaper with a $200 excess. I have communicated this with the other 3 three owners, one is owned by Community Housing. To my astonishment, the two other private owners do not want to change.

This same insurer said I can insure my property separately. It will be more expensive but at least I don’t have to deal with the other owners and my excess will be much cheaper. But is this possible? Am I able to insure my unit separately with a different insurer and what about the common property?

Answer: By having strata insurance, it means that at all times you have consistent insurance in place, both for your home unit and common property areas.

In answering this question, I have assumed your strata scheme falls under built strata – Lots in Single Tier Schemes and not a Survey Strata Scheme. As my response would be different for each scheme type.

Lots in single tier schemes come under Schedule 2A Part 5 cl.53A – 53E and where applicable Required Insurance S97 of the Strata Titles Act 1985 as amended in 2018.

A strata under cl.53B(2) it states strata company may determine by ordinary resolution agree to insure in respect to matters as referred in the subclause (1) and at any time by ordinary resolution revoke that determination.

Please refer to the following reference links:

• Strata Titles Act 1985 as amended in 2018
• Landgate Guide to Strata Titles

It is not advisable to double insure your property as if you try to make a claim, technically you would be involving 2 insurers and this would make your claim complicated. I am unable to comment on the insurance quotes you have obtained, however, what is really important is to ensure the insurers you have obtained quotes with are like for like and similar in sum insured value.

Generally, strata insurance is a very broad cover, providing for accidental damage, not otherwise excluded by their exclusions. It also comes with other additional covers, which relates to unique strata risk exposures. As far excesses are concerned, some strata insurers do offer lower excesses in some cases. Further by having strata insurance, it means that at all times you have consistent insurance in place, both for your home unit and common property areas, such as your driveways, fencing and all undergrounds services, which are normally connected. Single home insurance may miss these important areas out of their quote and you would need to verify this with them.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #377.

Question: We have been with the same strata insurance company for 10 years. As a lot owner, do I need approval from the other 3 owners to call insurance companies and gather some comparable quote?

We pay over $3500 per year for strata insurance. As a lot owner, should I be able to get approval from the other 3 owners to call insurance companies for a few comparable quote? We have been with the same insurance company for 10 years and have never compared prices or asked for a reduction in premiums.

Answer: Not all strata insurance products are the same and therefore it’s important when applying for quotes that you have some understanding on how to compare these policies.

From your question, I assume your strata scheme is a 4 Lot single-tier scheme. This means the requirement to insure is found in the Strata Titles Act 1985 as amended by Strata Titles Amendment Act 2018 (STA), under Schedule 2A Part 5 – Insurance for lots in single tier strata scheme.

I don’t know if you are self-managed and whether you have any elected office bearers or not, as normally insurance is a delegated function for the office bearers to arrange. Generally for small schemes and with elected council members, you may attend a general meeting, and as 4 owners decide important matters for the strata company, such as insurance.

Insurance is usually one of your major expenditure items and obtaining alternative quotes is prudent, so that you can check the competitiveness of your current insurance policy, but at the same time, it is important to understand the cover that applies to your quotes as well. Not all strata insurance products are the same and therefore it’s important when applying for quotes that you have some understanding on how to compare these policies, along with the quote.

In WA there are a number of specialist strata insurance brokers, who can do this for you, or otherwise, you can do it yourself, as long as you line up all the policies you are obtaining other quotes from and ensure your covered items are similar.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #356.

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. What are our particular strata insurance requirements in WA?

We are looking at purchasing a property that is part of strata that was formed pre 1985. What are our particular strata insurance requirements in WA?

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.

Please note: this response was provided prior to the proclamation of the new strata title amendments.

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.

Leonie Milonas
PSC Property Lync Insurance Brokers
E: [email protected]
P: 1300 127 503

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal ad­vice. You should consult with a qualified strata or legal advisor.

This post appears in Strata News #195.

Have a question about your insurance needs for a strata property or something to add to the article? Leave a comment below.

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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). The above is a general response only to questions asked, not taking into account personal circumstances and is not legal advice. 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.

Please note that parts of this article were provided prior to the proclamation of the new strata title amendments and will be updated in due course.

Read next:

• WA: Q&A We can’t agree on a strata insurance company
• WA: Q&A Strata Insurance for common driveway

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