What insurance do I need for a unit in a two lot subdivision?
July 25, 2019 2:37 AM Subscribe
I'm considering purchasing a unit in a two-lot subdivision, in Melbourne, Australia. Currently there is no shared/common insurance for the building. What insurance would I need to obtain?
Two lot subdivisions are exempt from the normal laws regarding body corporate/strata insurance in Victoria, Australia. The apartment I am looking at is in a single building with another unit, one on the ground floor (the one I would be purchasing), and one on the top two floors. There is very little common property (basically the front entrance, some stairs inside the front entrance, and a small space, maybe 1 x 1.5 metres next to the entrance, plus an area along the side that is only accessible by the ground floor unit). There are no shared driveways. There is currently no shared/common insurance. What insurance would I need to take out to make sure I am protected? I assume I will need some sort of building insurance, but do I get coverage only for my unit? I have also heard I might need some sort of liability insurance, but that's very unclear to me. Most units I've looked at are in larger buildings and so the body corporates are required to obtain insurance and the premiums are shared by all owners, so this is the first time I have encountered this in my search and I want to make sure I have a clear understanding of what is needed.
Advice on what sort of professional I could speak to regarding this is also welcome.
Two lot subdivisions are exempt from the normal laws regarding body corporate/strata insurance in Victoria, Australia. The apartment I am looking at is in a single building with another unit, one on the ground floor (the one I would be purchasing), and one on the top two floors. There is very little common property (basically the front entrance, some stairs inside the front entrance, and a small space, maybe 1 x 1.5 metres next to the entrance, plus an area along the side that is only accessible by the ground floor unit). There are no shared driveways. There is currently no shared/common insurance. What insurance would I need to take out to make sure I am protected? I assume I will need some sort of building insurance, but do I get coverage only for my unit? I have also heard I might need some sort of liability insurance, but that's very unclear to me. Most units I've looked at are in larger buildings and so the body corporates are required to obtain insurance and the premiums are shared by all owners, so this is the first time I have encountered this in my search and I want to make sure I have a clear understanding of what is needed.
Advice on what sort of professional I could speak to regarding this is also welcome.
Response by poster: Didn't work out in the end but thanks for your answer lollusc as it was very helpful.
posted by milkcrateman at 7:50 AM on July 27, 2019
posted by milkcrateman at 7:50 AM on July 27, 2019
This thread is closed to new comments.
When we owned a house that had a shared driveway and shared retaining wall with the neighbour, in Canberra, we were able to get an extra policy from the same insurers we got our main home insurance from. It wasn't advertised on their website, but when we called them and explained the situation, and sent through the property plans with the shared areas marked, they gave us a quite reasonable quote that included damage and liability insurance (I think it was only about $200 a year?) and we split the cost with the neighbours.
posted by lollusc at 3:22 AM on July 25, 2019