Common Ground Liability
Insurance can often be overlooked in smaller properties where the only common property is a driveway or fence. Common Ground Liability Insurance provides public liability cover for two lot subdivisions.
As subdivisions of two lots are exempt from many of the sections and divisions of the Owners Corporation Act and are not required to purchase Strata Insurance, many property owners only learn that they need public liability insurance when they go to sell their property.
Whitbread can help you source an appropriate level of cover to ensure you are protected and not at risk of being held personally liable for any accident or injury that occurs on shared or ‘common ground’.
Covered Features
Public Liability
Covers the Owners Corporation up to the sum insured for their legal liability following an occurrence that causes personal injury or property damage.
Specialist
Lia de Sousa
Common Ground Liability
FAQ's:
An Owners Corporation (formerly Body Corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development.
You are likely to be a member of an Owners Corporation if you own a flat, apartment or unit. Your ‘Body Corporate’ became an Owners Corporation on 31 December 2007, when the Owners Corporations Act 2006 came into force. This law sets out the duties and powers of Owners Corporations.
An Owners Corporation is automatically created when a plan of subdivision containing common property is registered at Land Victoria. Land Victoria registers and records Owners Corporation applications received either with a plan of subdivision, or lodged following registration of the plan of subdivision.
Common Ground or Common Area refers to the areas on the plan of subdivision which are jointly owned by lot owners. When owners buy into a subdivided property, they not only purchase the lot in which they reside but they also purchase a share of the common property pertaining to that strata title. This commonly includes driveways, gardens, storage areas, recreational rooms and pools.
While the Owners Corporation Act is ambiguous about the legal requirements for two lot subdivisions in respect to Liability, Whitbread recommends that cover is taken to ensure that Owners Corporation Members are not held personally liable for accident or injury that occurs on Common Ground.
Owners Corporations with common property, except two-lot subdivisions, must have public liability insurance of not less than $10 million for the common property.
Your Owners Corporation should get professional advice about its level of risk. Some Owners Corporations have lots with different uses (for example, residences and shops), which can mean significant differences in risk.
Please speak to an insurance broker who will advise you on the appropriate level of cover for your situation.
