Hi. My sister is currently in the process of purchasing half a duplex for investment. On the contract it is listed as Strata Title. I was with her when both the current owners of the half she is buying and the agent told her there is no body corporate and everything is separate in terms of bills like rates, water etc. She was told that for building insurance she could insure her own half but must include the common wall. Alternatively the entire building could be insured and she would go halves with the owner of the other half. This is what the current owners are doing as their son owns the other half. When she rang an insurance company she was told because it is strata titled, the building is insured under the body corporate. Other compnaies would not insure it because of the strata title. I am confused as she is. Could someone offer some advice here: what does the strata title mean? Can she in fact insure only her half and the common wall? And if so, what insurance companies allow this? I have picked up some information from these forums but had difficulty loacting information specific to this situation. Many thanks.
Hi Anthony,
Insuring a duplex must be one of those grey areas. We recently bought a duplex building (not strata titled) and found that some insurers wouldn’t cover it at all, some would only insure the two sides on separate policies and others would insure it as a single building. The cost also had up to almost 200% variation.
Although our situation is somewhat different to yours it has made me aware that insurance for a duplex (or half of) is not a simple business. Perhaps an insurance broker might be helpful if you are still in doubt.
Regards
SonjaHi Anthony
I’m not sure what state you are buying in, but in NSW the Strata Schemes Management Act allows for two lot schemes (duplexes – joined or freestanding) to take out individual building insurance. This means that in theory, with certain by-laws in place, you can run both lots almost totally independantly, like a torrens title house. However, I am yet to find an insurance company who will do this. I have heard of people doing so, but upon questioning, it always comes out that they have omitted to tell the insurer the property is strata titled.
Unfortunately, you will need to share the cost of the building insurance with the other owner, with your proportion based on your unit entitlement.
Regards
Wake
Thanks for the replies Wake and Sonja.
My sister’s solicitor told her that she would have to go half in the building insurance with the owner of the other half of the duplex. She spoke to the Real Estate agent and he is going to get the policy off the current owners. They are currently with GIO I believe. Originally, the estate agent told her that she could insure her half separately, but it seems her solicitor said otherwise.
Thanks again for the replies – I will pass on teh information.
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