Legal Requirements for Unit Insurance - Common Area outside of Four

one-land2 on 09/09/2020 - 21:46

Hi all,

I live in a set of 4 units. The other three units are owned individually by other parties. We are not managed by a body corporate, but the 4 units currently share insurance which has been increasing every single year. Lately, due to an increase in the insurance premiums - I have tried looking into separating our insurance, but have been told by a neighbour that we can't as we have a shared area out front. I've been looking online - but can't find anything that relates to it as it saying we need a body corporate or somethiing similar which we don't have

I was wondering if anyone had a similar situation and how you went about it.

Home & Garden

Comments

  • Hybroid on 09/09/2020 - 21:48
    +1

    Ask your insurance company? Probably best get it from them direct.

  • jug123 on 09/09/2020 - 22:02

    common area, common insurance. Lets say an insurance co would let you separate it & lets say 3 of 4 the units paid the insurance for their portion and then lets say someone was injured in the portion not insured, everyone would still be liable as its common property. Your only way around it would be to split the common property and change the title which would be expenisve for you and great for the lawyers

  • resubaehtgnolhcs on 09/09/2020 - 22:07
    +2

    Are the individual units on a torrens title or strata title? That will determine whether you should have a body corporate, common areas etc.

  • JimmyF on 09/09/2020 - 22:59

    share insurance which has been increasing every single year.

    That is generally how insurance goes….. Normally up, never down.

    but have been told by a neighbour that we can't as we have a shared area out front. I've been looking online - but can't find anything that relates to it as it saying we need a body corporate or somethiing similar which we don't have

    You have 'common areas' and to protect yourself need to have public liability insurance incase someone enters and hurts themselves.

  • one-land2 on 09/09/2020 - 23:00
    +1

    I think it's strata but no one manages it

  • Ughhh on 10/09/2020 - 00:09

    Lack of active body Corp doesn't mean you don't need insurance for the common area.

  • JIMB0 on 10/09/2020 - 06:01

    Can't you look for a better deal for the 4 units then take over organising it. Don't forget cashrewards.

  • 87percent on 10/09/2020 - 08:40

    So what would happen if unit 1 damages the front are? Would they pay, or does everyone pay 1/4?

  • miarn on 11/09/2020 - 12:26

    I'm not sure what state you're in, but in Victoria (and I assume it would be similar in other states) if you have common property it's a legal requirement to have insurance.

    Also, if you have common property then you'll have some sort of owners corporation - there needs to be an entity to own the common property.

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