Flat Chat Strata Forum Two-unit strata Current Page

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  • #8560
    Paul2000
    Flatchatter

      I am submitting this on behalf of a close relative who lives in QLD (Gold Coast) in a 2 lot Building Unit Plan.

      The new insurance renewal has come in and there is now compulsory flood cover because of the area in which the relative lives (one of the islands). A lot of the insurers in QLD are now automatically including flood cover with no option to opt out. The building premium is now around $6,000 and the relative wants to pay and get the cover whereas the adjoining owner does not and has found an insurer in Victoria who will provide cover, but no flood cover, for around $1,600.

      There appears to be a stalemate here as there are only two owners and they cannot agree and coverage has just run out. I understand that under the Building Units – Group Titles Act (S. 55) that the body corporate shall insure etc…but if there is no agreement and the policy is not renewed they are in breach of the act.

       

      Any suggestions for resolution?

    Viewing 5 replies - 1 through 5 (of 5 total)
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    • #17194
      FlatChatFan
      Flatchatter

        Maybe starting with a dictionary to explain to the other owner the meaning of ‘compulsory’.

        #17196
        Paul2000
        Flatchatter
        Chat-starter

          Update!

          I am advised that the other owner has now paid the lower premium of $1,600 without agreement by my relative. It seems that he is going to contra off half as he also owed $900 to my relative for essential roof repairs carried out some months back which he said he couldn’t afford to pay!

          Seems to me that the complex is disfunctional and may need some tribunal involvement. The problem with a two owner plan is that you can only ever get a decision if 100% agree.

          #17200
          FlatChatFan
          Flatchatter

            Paul, I suggest your relative gets urgent legal advice.  The people who advertise at this Forum are recommended by Jimmy.

            If there was a claim on the insurance, I suspect that nothing would be paid as the other party probably did not mention the need for compulsory flood cover for the area.  It would not even need to be a flood claim for them to refuse to pay,  so $1,600 would be wasted if you can not cancel and get a refund.

            I do not think that the other owner can just ‘contra off’ the amount owing for roof repairs.

            I think it will be cheaper in the long run to get good advice now, instead of waiting for things to get worse.

            #17201
            Jimmy-T
            Keymaster

              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.

              The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
              #17202
              scotlandx
              Strataguru

                I don’t believe one owner can enter into an agreement like that on behalf of the Plan without the agreement of the other owner, so whatever he has done is probably voidable. I think you should get legal advice, if you can’t agree on things like this it is a bigger issue than just insurance.

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