WA Survey Strata Property insurance

[Survey Strata]

Who is responsible for the insurance of a freehold Survey Strata Lot Property.
I am the sole owner of the lot and the house on it.
I am part owner of common property and pay quarterly levies.
Can the Strata Company (via Strata Management Company legally force me to insure through the
same insurance company as the common property so the Strata Management Company can get a
commission?
I have refused to insure through the Strata Company. It is my exclusive property and as far as I am concerned the Strata Company cannot effect insurance for my property because they have no insurable interest in my private freehold property.

 

[Rob Legat - SBPL]

This is more relevant to Queensland, but I suppose the same principles will apply. If you structure is free standing without a common wall to another lot, there’s no reason why you can’t get your own insurance. If the body corporate’s insurance covers your lot, however, you’ll be paying more than you need to. A prudent body corporate will also ignore any request not to insure your lot, as ensuring their is sufficient and ongoing coverage is for the benefit of the scheme overall.

If you have a common wall with another lot, it’s trickier. I can’t imagine you’ll find an insurer who wants to cover you unless you’re insuring the total structure - meaning you’re insuring someone else’s lot (in which you don’t have an insurable interest).

 

[Survey Strata]

This is more relevant to Queensland, but I suppose the same principles will apply. If you structure is free standing without a common wall to another lot, there’s no reason why you can’t get your own insurance. If the body corporate’s insurance covers your lot, however, you’ll be paying more than you need to. A prudent body corporate will also ignore any request not to insure your lot, as ensuring their is sufficient and ongoing coverage is for the benefit of the scheme overall.

If you have a common wall with another lot, it’s trickier. I can’t imagine you’ll find an insurer who wants to cover you unless you’re insuring the total structure - meaning you’re insuring someone else’s lot (in which you don’t have an insurable interest).

 

[Survey Strata]

Thank you rob for your reply.
There is no common walls. The strata council of owners are only responsible for common property.
A Survey Strata lot has no common property content. The land is freehold and I built the double brick house on it. We have a club house which is common property that is owned by all survey strata owners and we pay levies to cover insurance and maintenence. We have employed strata management company and they are stating everyone must insure through them with the same insurer as common property. Of course they will get a huge commission
and the premium quote is $200 to $300 more exenpensive than the quote I obtained independently.
Does not sit well with me! My Private Poperty my responsibility. Strata Tites Act states A Strata Company cannot effect insurance if they do not have an insurable interest in the entity being insured. An insurable interest being to
suffer a financial loss if the property is damaged or destroyed. The Strata Company has no financial interest in myproperty I own it freehold One hundred percent!
Strata ManagementCompanies in Western Australia are not licenced and need no qualifications to set up as a
Strata Management Company. Many have come from real estate agencies ours included and appear to have no understanding of Strata Law. The bottom line appears to be how much money can they extract from the Strata Residents. On reading the reviews of Strata Management Companies on the internet there is a lot of disgruntled
Strata Residents out there! I hope that interstate Strata Residents are getting a better service as I understand their Strata Management Cooanies have to be qualified in Strata Law and be licenced. Hope WesternAustralia gets tough on cowboy operators and they are forced to be licenced and accountable!