Flat Chat Forum Two-unit strata Current Page

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  • #10549


    I’m new to posting on the forum, but have been an avid reader in the past.

    Does Strata law in NSW makes it mandatory for a 2 lot strata plan to maintain / take out joint SP insurances when there is virtually no common property or risk to insure? SP insurance seems a very expensive and complicated animal, with little true competition in the market. Could the individual lot owners take out their own respective home building insurance instead?  


    Scenario is as follows :

    A 2 lot suburban strata plan, with one house at the road and one on a battle-axe block.  The registered plans specify that “the walls, floors, ceilings, roofs, overhangs and structural cubic spaces of the buildings form part of the respective lots”.  The total land area is 1483m2, and the land area of each lot includes all respective fences, paths, sheds, carports, garages, driveways, power supplies, meters etc. 

    The only part of the drawn plan designated as “common property” – an area of 2m2 (0.14%) – appears to relate to an area near the road which is divided in 1/2 by a fence and where each lot has a garden and an individual water meter on their own side of the fence.  i.e. – there is no delineated “common property” in the area designated as “common property”.  As far as we can see, apart from formal easements on the legal title for drainage of sewage and water, there is nothing shared between the 2 lots at all.

    Its a simple 50:50 unit entitlement.  There is an historical anomaly that in the past the cost of joint SP insurances have been borne 60:40.   The current lot owners are friendly and are amicably discussing amending this back to 50:50 when the SP insurance next comes up for renewal, but the question about individual insurance arrangements has arisen, not for the first time.  According to the historic minutes this was mooted when the SP held its very first meeting – but lawyers for the 2 lot owners at the time didn’t seem to want to answer the question.   

    Looking forward to appropriate pointers on this.  




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Flat Chat Forum Two-unit strata Current Page