If you are in a strata plan in Queensland where there is at least one shared wall (or two units in one block) building insurance is compulsory.
From what I can see, some insurance companies make flood cover compulsory while others allow an opt-out so compulsory flood insurance depends on who you insure with.
It sounds like the other owner has taken the glass-half-full approach and gone for the cheapest cover but I would be surprised if the insurance was actually effective given that one owner hasn’t agreed to it.
It’s interestng that someone has cited our sponsors CHU. I found this on their website: “Most policies meet the minimum legislative requirements but don’t necessarily provide owners with the additional protection that really counts.”
And that’s the key to this question – do you want proper insurance coverage or do you want to just tick the legal requirement box and hope nothing disastrous happens.
Paul2000’s friend needs to call the insurer up and tell them he hasn’t agreed to this deal and that he won’t until he’s had a chance to see what kind of cover they provide.