Flat Chat Forum Two-unit strata Current Page

  • This topic has 4 replies, 3 voices, and was last updated 4 months ago by .
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    Topic
  • #9529
    Bean16
    Flatchatter

    Just wondering about house insurance in a 2 lot strata scheme where each lot’s unit of entitlement is 10/20. I own Unit 2 which is 77m2 inside and the lot is 194m2 overall. Unit 1 is 119m2 inside and their lot is 156m2 overall. At the moment I am paying exactly half of the total house insurance per year. Should I be paying half as my unit of entitlement is 10/20 or should I be paying less than unit 1 because my portion of the house is smaller? Or should I be paying more because my total lot is greater than theirs? Thanks in advance!!

    • This topic was modified 4 months ago by .
Viewing 4 replies - 1 through 4 (of 4 total)
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  • #54471
    Jimmy-T
    Keymaster

    Is strata insurance paid based on unit entitlements e.g. 60/40 or 70/30 or its paid 50/50 in a 2 lot residence?

    It’s based on unit entitlement, which also means that the person who pays more gets to choose the insurer.

    There are exemptions to compulsory strata insurance for two-unit schemes under Section 146 of the Act  provided both owners agree and the buildings are not attached.

    For instance, you might have a an allencompassing insurance policy – car, home and contents, building etc – that would be cheaper than your share of strata insurance.  In that case you’d talk to your neighbour.

    #54469
    2lotAU
    Flatchatter

    Just came across this reply and wanted clarification for my own 2 lot.

    Is strata insurance paid based on unit entitlements e.g. 60/40 or 70/30 or its paid 50/50 in a 2 lot residence?

     

    Thanks

    #21682
    Bean16
    Flatchatter
    Chat-starter

    Thankyou Jimmy! That clears that up very nicely. This little dog will definitely lie down on this one! Thanks again for your prompt answer! Cheers!

    #21677
    Jimmy-T
    Keymaster

    You are paying the correct amount according to strata law because you are paying your share according to your unit entitlements.

    If unit entitlements were based solely on the area of the lot you could have an argument that the UEs are wrong and you should be paying 194/350ths (which is your share of the combined area).  Apart from the fact that you would end up paying more, so there is no benefit in raising the issue, UEs are not based on lot area but on a complex calculation allied more closely to unimproved value. 

    For instance a larger property on the ground floor might have lower UEs than a smaller property upstairs because the higher one could have views. However, even if you got an estimate of real estate potential sale values done now, it would not be accurate because it would include additions, improvements and upgrades.

    This is one sleeping dog that I would let lie.

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Flat Chat Forum Two-unit strata Current Page