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A Guide to Strata Titles

18 INSURANCE (SEC 53 STA) The basic principle of insurance in strata schemes is to provide for joint insurance of common property, to ensure that owners are adequately covered against loss or damage arising from claims against the strata company that occur in or on common property. You should consult your insurer to ensure you have adequate insurance cover for both individually owned lots and common property in your strata scheme.

18.1 Single Tier Strata Scheme In a single tier strata scheme: • The strata company must take out joint insurance of buildings (to their replacement value) and insure for public liability (for at least $5,000,000) in respect of common property unless: (a) the only common property is the air above the lots and the soil below them, or fences; or, (b) the strata company decides by resolution without dissent (or unanimous resolution in a 2-lot scheme) not to take out joint insurance. Any owner can insist on joint insurance of common property at any time. • The strata company must also take out any other insurance required by law, e.g. workers' compensation, if applicable, and any other risks which the strata company decides to insure against. This is the same as for non-strata freehold titled properties. • The owners can take out individual building and public liability insurance of their individual lots, unless the strata company decides by majority decision to take out joint insurance.

18.2 Non-Single Tier Strata Scheme In a strata scheme which is not a single tier strata scheme (eg. a multi-storey /highrise building), the strata company must take out the following insurances: •

building insurance for all buildings on the land in the scheme (except if there is an exemption under the Strata Titles General Regulations 1996) to their replacement value; and

public liability insurance for the common property, for at least $5,000,000, unless exempted by an order of the Strata Titles Referee.

The strata company must also take out any other insurance required by law, e.g. workers' compensation, if applicable, and any other risks which the strata company decides to insure against. This is the same as for non-strata freehold titled properties.

18.3 Survey-Strata Scheme Where there is common property is a survey-strata scheme, the strata company must take out the following insurances: •

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building insurance for any buildings on the common property, to their replacement value; and

Edition 3.07 March 2014

Profile for Central Insurance Brokers

Landgate perth wa strata titles guide  

This book is produced as a community service by the Western Australian Land Information Authority (Landgate) to give people a basic understa...

Landgate perth wa strata titles guide  

This book is produced as a community service by the Western Australian Land Information Authority (Landgate) to give people a basic understa...

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