Lot owners from QLD are looking to purchase a villa or duplex and are wondering what is covered by body corporate. What are the rules about duplex insurance in Queensland?
Table of Contents:
- QUESTION: Does each owner pay strata insurance as a percentage based on building size for our two lot strata?
- QUESTION: So we know we are insuring our QLD duplex for the right amount, is there a fixture and fittings checklist we can use?
- QUESTION: I own both units of a duplex on one piece of land. I reside in one and rent the other out. There is a shared roof and driveway. What type of insurance do I need?
- QUESTION: What is the process of filling a committee vacancy under the small schemes module?
- QUESTION: Our insurance annual premium have increased significantly. How do we find the best and most affordable insurance for our property?
- QUESTION: In a duplex, what if the other lot owner will not contribute to insurance? In a duplex, can each lot owner take out insurance separately? What are the rules about duplex insurance in Queensland?
- QUESTION: We live in a duplex and a boundary fence needs replacing. Is the cost of boundary fences in a duplex the responsibility of both owners of the duplex and the neighbouring property?
- QUESTION: I’m looking to buy a villa or duplex in a small strata scheme. Can they make their own rules or is there any Queensland government legislation about the insurance requirements or what is covered by body corporate?
Question: Does each owner pay strata insurance as a percentage based on building size for our two lot strata?
We own a lot in a two lot strata. One building size is 148m2, and the other is 307m2. Are we required to pay strata insurance as a percentage based on building size?
On our schedule of lot entitlements, our contribution is 1:1.
But our interest is:
- 14 – neighbour
- 11 – me and my partner
Answer: This will depend on whether the building is a building, volumetric or standard format plan.
The Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011 regulates how premiums should be paid.
This will depend on whether the building is a building, volumetric or standard format plan.
The regulation stated below should answer the question:
52 Premium
- The owner of each lot that is included in a specified two-lot scheme and is covered by reinstatement insurance required to be taken out by the body corporate is liable to pay a contribution that is a proportionate amount of the premium for reinstatement insurance that reflects—
- for a lot created under a building or volumetric format plan of subdivision—the interest schedule lot entitlement of the lot; and
- for a lot created under a standard format plan of subdivision—the cost of reinstating the buildings on the lot.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the November 2024 edition of The QLD Strata Magazine.
Question: So we know we are insuring our QLD duplex for the right amount, is there a fixture and fittings checklist we can use?
Is there a Qld-specific checklist for the fixtures and fittings in our duplex? The common items are the fences, common wall and wiring and plumbing. I have had no support from our previous or current insurer, who have both directed me to their PDS and the PDS directs me to the legislation, which does not have any type of checklist.
We require this information so we have confidence in the amount we insure the building for and how much we need for our individual contents insurance.
Answer: There is a requirement that the property conducts an insurance rebuild valuation every 5 years.
The Body Corporate and Community Management (Small Schemes Module) Regulation 2020 requirements that the property conducts an insurance rebuild valuation every 5 years per the legislation – Section 119.
The basic principle is that if you pick the unit up and shake it anything that falls out is lot owners contents + temporary flooring such as carpet, blinds & curtains, appliances that are not permanently attached, and aircon units servicing an individual lot (QLD only). These items need to be insured by contents/landlord’s insurance.
Other permanent fixtures including but not limited to kitchen and bathroom cabinetry are covered by strata insurance subject to the policy terms, conditions and exclusions.
Lot owners should also have contents/landlords insurance to cover property not insured by the strata policy and liability within the lot and I always suggest lot owners add an extra say $10,000 contents cover on what they believe should be covered for any incidental items not considered as it might only cost say $50 for the extra piece of mind.
Applicable Legislation
119 Valuation for insurance purposes [SM, s 200]
- This section applies if, under this part, a body corporate must insure 1 or more buildings for full replacement value.
- The body corporate must, at least every 5 years, obtain an independent valuation stating the full replacement value of the building or buildings.
- The owner of each lot included in the community titles scheme is liable to pay a contribution levied by the body corporate for the cost of the valuation of the building or buildings that is proportionate to the amount of the premium for reinstatement insurance for the building or buildings for which the owner is liable under this part.
- The contribution that the owner of a lot is liable for may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the November 2022 edition of The QLD Strata Magazine.
Question: I own both units of a duplex on one piece of land. I reside in one and rent the other out. There is a shared roof and driveway. What type of insurance do I need?
Answer: You need Strata Insurance covering the building and public liability insurance for common areas.
In Queensland, the BCCM Act requires that a body corporate must insure buildings with shared walls. In this instance, you will need Strata Insurance covering the building and public liability insurance for common areas and you will need a separate contents/landlords insurance policy covering contents items not covered by strata insurance.
With regard to what is not covered by strata (and covered by contents/landlords insurance) – the basic principle is that if you pick the unit up and shake it anything that falls out is lot owners contents + temporary flooring such as carpet, blinds & curtains, appliances that are not permanently attached, aircon units servicing an individual lot (QLD only).
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in Strata News #591.
Question: What is the process of filling a committee vacancy under the small schemes module?
What is the process of filling a committee vacancy under the small schemes module? I would appreciate clarification specifically to the Small schemes module. Given there are only 2 committee positions, can the remaining committee member appoint another eligible person to the committee or MUST an EGM be called to appoint someone to fill the vacancy?
Answer: If the Secretary or Treasurer position becomes vacant during the year, the Body Corporate must hold an extraordinary general meeting to appoint an eligible person to fill the vacancy on the Committee, even if there is a remaining Committee Member.
The Committee for a Body Corporate classified under the Small Schemes Module only consists of two members; a Secretary and Treasurer. These members are elected at each Annual General Meeting unless all the lots in the scheme are owned by the same person or 2 different people.
If the Secretary or Treasurer position becomes vacant during the year, the Body Corporate must hold an extraordinary general meeting to appoint an eligible person to fill the vacancy on the Committee, even if there is a remaining Committee Member.
However, in the event all the lots in the Body Corporate are owned by only 2 people, these owners must come to a mutual agreement about who will hold the Committee positions and if an agreement can’t be reached, they hold the positions jointly.
Jessica Beckett
SSKB
E: jbeckett@sskb.com.au
P: 07 5504 2000
This post appears in Strata News #587.
Question: Our insurance annual premium have increased significantly. How do we find the best and most affordable insurance for our property?
We own and live in a duplex. The other owners rent their duplex. Both lot owners are on very good terms and we have always come together for reasonable strata insurance.
Recently, our insurance company has increased our annual premium significantly. Is there anything we can do to find the best and most affordable insurance for our property?
Answer: Go to market and seek quotes
There are a number of things that can be done to reduce your premium.
Firstly, go to market and seek quotes. For duplex’s direct insurers are often the best insurers to approach.
The next thing is to check your building sum insured. Some insurers will increase the sum insured by 5% each year even in years where the actual increase is much less. This can have the impact of inflating the sum insured above what is required. In QLD it is a requirement that an insurance rebuild valuation is conducted every five years – an opinion by a valuer may recommend a reduction in your sum insured which will reduce premiums.
Lastly, you can consider increasing your excesses as a way of reducing premiums.
We are currently experiencing a hardening market which means premiums are increasing, but the above three measures should be considered as options for reducing premiums.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the September 2021 edition of The QLD Strata Magazine.
Question: In a duplex, what if the other lot owner will not contribute to insurance? In a duplex, can each lot owner take out insurance separately? What are the rules about duplex insurance in Queensland?
Answer: In Queensland, if the duplex doesn’t have a common wall or roof, and is a standalone property then you can take out insurance separately. And if it’s not, you can’t.
In relation to duplexes, the first thing to establish is does the duplex have common walls or a common roof? If it has either of those things, the building must be insured as one property and therefore it must fall under strata title property policy.
If you’re having issues with the other lot owner contributing to that policy, the first advice I give anyone is to try and resolve it without it being a conflict between yourself and that owner. Have a chat with them and if you can’t talk reason with that owner, then there is the availability of the commissioner who can make orders that the owner does pay for their portion of insurance.
If the property doesn’t have common walls and your lot is a standalone property, you can insure it separately under home insurance. But, the Act does say that the common property (that could be things like driveways or other areas of common land) must have public liability insurance. So it can sometimes be difficult to get around that specific requirement of sharing the policy. But it does look at specific circumstances.
In Queensland, if the duplex doesn’t have a common wall or roof, and is a standalone property then you can take out insurance separately. And if it’s not, you can’t.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in Strata News #386.
Question: We live in a duplex and a boundary fence needs replacing. Is the cost of boundary fences in a duplex the responsibility of both owners of the duplex and the neighbouring property?
We live in a duplex in Queensland and the boundary fence needs to be replaced.
The fence is on the boundary that runs along the side of duplex 2 and the next door neighbour.
I believe a Fair Trading ruling recently stated that the cost of boundary fences in a duplex are the responsibility of both owners of the duplex and the neighbouring property. The costs were split:
- Duplex 1: 25%
- Duplex 2: 25%
- the neighbouring property 50%.
Is this the ruling for fence replacements on QLD duplex sites?
Answer: The maintenance apportionment and responsibility ultimately depend on your specific circumstances.
The Neighbourhood Disputes Resolution (Dividing Fences and Trees) Act 2011 (Qld) (NDA) is the applicable law in Queensland relevant to dividing fence matters. Generally, under the NDA, adjoining owners are jointly responsible for the maintenance of boundary fences.
Section 311 of the Body Corporate and Community Management Act 1997 (Qld) (BCCMA) provides that for the purposes of the NDA, the body corporate for a community titles scheme is taken to be the owner of the scheme land.
In Odyssey Villas [2018] QBCCMCmr 194, the adjudicator considered the maintenance responsibility of a scheme boundary fence that also formed the boundary of an exclusive use area, relevantly providing (our emphasis):
“Maintenance of boundary fences falls to the Body Corporate, regardless of whether they are also the boundaries of a lot or an exclusive use area, as section 311 of the Act treats the Body Corporate as the owner of the land for the purposes of the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 (Dividing Fences Act), with some limited exceptions.
While scheme by-laws may provide that lot 7 is responsible for the maintenance of their exclusive use area, by-laws are limited to the extent that they are inconsistent with legislation. In this case, section 311 of the Act, read with the Dividing Fences Act, is clear that the Body Corporate is responsible for maintenance of the boundary fence, regardless of who benefits from it.”
Accordingly, the general position is that the body corporate is responsible for the maintenance of a fence that forms the boundary of the scheme. To the extent the fence is a dividing fence under the NDA, the neighbouring lot owner (outside the scheme) will be responsible to contribute to some of the maintenance costs.
Of course, the maintenance apportionment and responsibility ultimately depend on your specific circumstances. As just a few examples, the above position can change if the fence is actually a retaining wall, if one party caused the damage to the fence, or if the fence does not form the boundary of the scheme.
Frank Higginson
Hynes Legal
E: frank.higginson@hyneslegal.com.au
P: 07 3193 0500
This post appears in Strata News #314.
Question: I’m looking to buy a villa or duplex in a small strata scheme. Can they make their own rules or is there any Queensland government legislation about the insurance requirements or what is covered by body corporate?
I am looking to buy a duplex or a villa in a small complex up to six units.
Can they make their own rules or is there a Queensland government legislation for a duplex regarding insurance, plumbing, electrical, roof repairs, fencing. What is covered by body corporate?
I am confused as the sellers claim the body corporate only pays for the building insurance and gardening. Does this sound right?
Answer: This is the difference between sales patter and legal detail.
Lots in small schemes are often sold on low body corporate levies and the absolute minimum for levies is insurance. After that what is needed depends on what the common property is.
In this one there is some gardening. There would also be (probably) whatever common infrastructure (pipes etc), driveway, letterbox, roof (it is a supporting structure for both lots) and so on.
The body corporate’s obligations to maintain these things is absolute. A body corporate cannot contract out of that obligation. But the maintenance of them is very likely capital in nature, which is what a sinking fund does.
Self managed strata
If this building is self-managed (like lots of small ones are), it wouldn’t surprise me if the levies are just for insurance and gardening and there is no sinking fund, which means that if (and when) any of those other things need work, owners have to be hit up for it as 1/6th of whatever that now urgent cost is.
So in short:-
- The act sets out the rules for how these things must be maintained;
- If the budgets are not properly managed now, there can be surprises at the end.
But you also never know if the agent is just doing the usual sales pitch without seeing any of the detail and it is all in fact built into a proper sinking fund budget which does form part of the levies!
Frank Higginson
Hynes Legal
E: frank.higginson@hyneslegal.com.au
P: 07 3193 0500
This post appears in Strata News #182.
Have a question about the rules for a duplex or duplex insurance in Queensland or something to add to the article? Leave a comment below.
Read next:
Visit our Renting / Selling / Buying Strata Property, Strata Insurance OR FactSheets: Strata Legislation QLD
Looking for strata information concerning your state? For state-specific strata information, try here.
Are you not sure about some of the strata terms used in this article? Take a look at our NSW Strata Glossary to help with your understanding.
After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.
I have an apartment in a body corporate in Queensland. My hot water system ruptured (it is located in the kitchen cupboards) and leaked into my kitchen cupboards. I have landlord insurance but the landlord insurance says they are not responsible because the kitchen cupboards are part of the building and they are not responsible for covering building issues and this should be referred to the strata. My strata say their insurance does not cover “kitchen, bathroom and bedroom cupboards.” Surely the landlord insurance should cover kitchen cupboards as they are not part of the building but part of the contents. What are your thoughts ? I feel stuck !!!!
Can anyone help ????
Hi Steven
The following response has been provided by Tyrone Shandiman, Strata Insurance Solutions:
The definition of building under a strata policy is generally worded along the lines of: Building means buildings as defined in the Strata Legislation applying where Your Building is situated. Permanent fixtures such as built in cabinetry are considered part of the building and only insurable under a strata policy.
A strata insurance policy can’t provide coverage for a building that does not meet the requirements of the applicable legislation. In Queensland there are various regulations that apply to Body Corporates dependant on which regulation module your scheme is registered under, however the intentions are all the same. I have referenced the Body Corporate and Community Management (Standard Module) Regulation 2020 as an example.
Part 6 Insurance – Act Section 1898 (195) defines building as:
building includes improvements and fixtures forming part of the building, but does not include—
(a)temporary wall, floor and ceiling coverings; or
(b)fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
(c)mobile or fixed air-conditioning units servicing a particular lot; or
(d)curtains, blinds or other internal window coverings; or
(e)carpet; or
(f)mobile dishwashers, clothes dryers or other electrical or gas appliances not wired or plumbed in.
The above list of excluded items does not include built in cabinetry therefore the act requires it to be insured as part of the building under the Strata Insurance.
I own a unit in Runcorn, its a duplex but does not have a body corporate number, this was not done in 1998 when constructed.. I insure my rental and the other owner insures hers, is this legal. Insurance companies will not insure without a BC number as a total package.
When considering duplex properties, the approach to insuring them varies based on the property’s title. If the property is on a strata title, it is advisable to secure coverage through a Strata Insurance Policy. Conversely, if the property is not on a strata title, it can be insured under a home policy. In cases where the property shares a common wall, the optimal course of action is to insure it collectively under a singular strata policy.
Properties lacking a Strata Title are not aligned with the Target Market Determination for Strata Insurance. Consequently, insurers are unable to extend coverage to such properties.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
My duplex and the one next door share a common wall and driveway. The neighbour’s duplex is slightly uphill from mine and they have a downpipe on their property that does not drain into storm water but instead drains down the driveway onto my property causing quite a heavy stream of water and eroding my backyard and going into the property that backs onto my backyard. I am not one for complaining about small things but it is causing substantial damage. Any direction would be appreciated.
Hi Jan-Maree
The followng response has been provided by Chris Irons, Strata Solve:
Your first step, ideally, is a conversation with your neighbour about the situation. Remember there is a possibility they are not aware you are experiencing any issues, or the extent to which you are experiencing them.
After that, if the problem still remains and you are unable to get anywhere with your neighbour, you will need to look at the next steps. Ultimately you would need to have the matter resolved in the Commissioner’s Office if you cannot resolve it through other means: I would be strongly recommending you try to avoid that, because it will take a long time, cost money and will involve stress. Plus, any formal outcome will be on the public record.
Without commenting on the specifics of your situation, if an owner’s lot is contributing to damage to a lot or common property, or if they have not maintained their lot and it is causing damage to another lot or common property, they can be held responsible for the costs of that damage.
In my experience, duplex disputes are among the most challenging to resolve, because you have only the 2 parties and deadlock is commonplace. So my strong recommendation is to look for every possible way to resolve this situation without needing to initiate formal proceedings. It will benefit you in the long run, especially if you are going to continue to be neighbours.
Maybe try the initial conversation, see how that goes and then come back here to see what step 2 might be like.
This is general information only and not legal advice.
When a villa/unit is sold, whose responsibility is it to notify the Body Corporate?
Hi Jan
This Q&A should assist:
Question: Is there a legal time limit in QLD for a BCCM Form 8 to be issued once a body corporate property has been sold?
Would you kindly advise if it is OK to paint one share of a driveway only (duplex). We would speak to other owner just in case they wish to do so also. However feel they may not, would like to know if we can go ahead and do our share. We are able to define the section.
Hi Noela
This link should assist:
I want to make some changes to my lot. Do I need to ask the other owner?
We rent a duplex on Gold coast.. The body corp laws were done in 1994 when building was first built and we have sent a letter to the other owners in adjoining duplex requesting to update them with new laws.
We have sent 2 letters and are yet to receive a response after 4 months. . If they continue to ignore what are our options
Hi Mick
You indicate you are a tenant at the property. It would be best to address your concerns to your landlord or letting agent.
I own unit 1 & 2 of a duplex on one piece of land, I reside in one and rent the other out. There is a shared roof and driveway. What type of insurance should I have, I am getting different responses from different insurance companies and a different one again from Body Corporate Qld. Thanks Kylie
Hi Kylie
We have responded to your comment in the article above.
If a pipe leaks in the property through no fault on the lot owner, causing damage to walls , kitchen unit, floors . Who is responsible for payment of the excess on the insurance claim
I have just been told I need strata insurance after being in my property for 3 years. The 2 units are even on different streets ( as registered by council lot numbers). Therefore everything is seperate x – we don’t nor have to access driveways gardens etc. the only thing joining us is our garage walls. I was told when I bought the property @ no body corp”. I have been fully insured since moving in and there have been no issues. But duplex next door has just sold which has now raised the question of strata insurance from the new buyers conveyancer – mine never did mention this. My question – Is it satisfactory to just jointly pay fior building insurance only to cover both in the event if damage/fire. I don’t want to be caught up in other stuff if maintenance etc as these properties are otherwise independent of each other.
Hi Denise
Tyrone Shandiman covers this in the above Q&A: In a duplex, what are the ramifications when the other party will not contribute to insurance? Is it possible to insure the duplex independently by only paying the Insurance for your duplex?
Would like to know if there is any information on insuring duplexes that have their own personal pools?
We are a side by side duplex, with no common property (completely separate properties apart from the connecting wall in the middle.
We both have pools in our property and have found when trying to insure, that companies only see pools under strata as those that are in big building complexes for example, so it almost doubles the insurance premium compared with not have a pool.
Has anyone else had this issue?
We live in a duplex witha common wall. My neighbour has now decieded that he is going to put gardens on the footpath. Can he do this without my consent?
Hi Geoffrey
We’ve dealt with a very similar issue here:
QLD: Q&A Authorising Common Property Changes or Improvements
These are all very interesting topics.
with the first question, re; insurance for duplexes, would this also apply nationally, or are there different rules for each state.
with regards to what is covered by Body corporate, again is this a QLD only rule or to apply to each state.
Hi Lina
Legislation differs in each state. The information contained in this post is specifically related to QLD Legislation.
Frank H., good points. Buyer beware!
When buying, check with people who are liable for what they represent (like solicitors) not with sales / marketing lingo. It is also advisable not to refuse to do the body corporate search and have the report explained to you. The costs of such due diligence is small fraction of your total investment, and may uncover hidden traps – financial or personal – which you may not want to deal with.
If i had a dollar for each time i heard “we should have done this or that” or “I really did not understand that being an owner requires involvement” – I would be driving different colour Tesla each day ;-).
Education and knowledge is important in not having to do “crash course on strata” once you are committed [edit by admin].
Jana Koutova
UOAQ Executive Officer
I agree completely, even if it is a small scheme or a two lot scheme there are still some important points to confirm especially before you purchase. Knowing whether its a Standard Format Plan or a Building Format Plan will also give you a great head start on responsibilities of maintenance of the Body Corporate.
One issue that I see on a regular basis with the insurance in a two lot scheme is an issue with the name of the insured or sometimes there are even 2 separate policies and not one of them covers public liability. The Insurance must be in the name of the Body Corporate. A bigger problem arises when the insured in the Lot Owner selling, The policy must be cancelled as it can not be transferred, and the other Lot owner may not be able to do anything about it as they are not listed as an authorised representative.
Even if there are no records to search, obtaining this basic information is very important.