Townhouse Body Corp & Strata Fees Building Insurance Question

mrvaluepack on 05/10/2021 - 10:29

I'm looking at purchasing my first property and going by current prices and availability, its looking like its going to be a townhouse. After reading through some Section 32s, I'm a bit confused with what's usually covered in the strata body corp fees.

Does it cover/include my townhouse's building insurance (not contents) as well? Or is the insurance in the strata purely for common property areas only?

Lets say the townhouse does not have any shared walls and a tree came smashing down on it, will I be covered with the strata insurance?

Home & Garden

Comments

  • autonomate on 05/10/2021 - 10:33
    +2

    https://www.anz.com.au/personal/insurance/guides-to-insuranc…

    You'll find this page helpful. It's unlikely your strata covers anything outside of common or foundation areas. You'll still need to insure your own property, for example if you burn your kitchen down making tendies in your airfrier - it won't be covered.

  • Seraphin7 on 05/10/2021 - 10:43
    +2

    Speak with your solicitor, but …

    My understanding is that the fundamental building structures (i.e. your townhouse in this example) of a strata scheme are all "common property". When you buy into a strata scheme you are effectively buying "exclusive use" of your particular townhouse rather than the actual structure as you would in a freestanding situation.

    • mrvaluepack on 05/10/2021 - 10:55
      +1

      Thanks for the explanation.

  • KaTst3R on 05/10/2021 - 11:02
    +1

    General rule, anything in the townhouse is your responsibility. Anything outside including the "outer shell" structure of your townhouse that connects to the next house is under strata.

    • mrvaluepack on 05/10/2021 - 11:03

      But the personal backyard/garden space is not included I assume?

      • jjjaar on 05/10/2021 - 11:53

        Probably not included. In apartments, balconies usually aren’t as they are wholly within the title of the individual unit.

        But as always, check with your conveyancer/lawyer.

  • deme on 05/10/2021 - 11:07

    Please get Home and Contents insurance and Comprehensive Insurance for your car.

    Strata Insurance will cover stuff that you do not own.

  • pippohippo on 05/10/2021 - 12:34

    Most strata insurance covers only public liability e.g. someone getting hurt on a common drive way/area. They might have building insurances buts generally not enough to cover anything apart from maybe a fence or shared drive way, not your home. Get your own insurances and pretend the strata insurance doesn't exist.

    If you can avoid, don't buy townhouses with body corp.

  • netjock on 05/10/2021 - 13:22

    Buy a 2 lot development, exempt from a lot of the strata requirements

  • Existenz on 05/10/2021 - 13:23

    It depends how its setup.

    Our strata covered the communal areas as well as the townhouses themselves but not the contents, the fees covered both communal and home insurance. It'll be worthwhile figuring out who the body corp is so you can talk with them (or the agent selling the property)

  • WreckTangle on 05/10/2021 - 14:11

    Another question, do i still need to pay rates if its an apartment building with a body corp?

    • AndyC1 on 05/10/2021 - 14:39
      +1

      Yes and you also get a separate water bill (sewage and water rates, but in most cases the water usage is not included as normally there is only one water meter and therfore the strata pays for the usage).

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