I am now trying to buy flood insurance just for our townhouse, but can’t find an insurer. What are the rules for flood insurance in Standard Format Plans? Is there a duty of care component? Is there a way I can get flood insurance for my building? – Jennifer, QLD

I live in one of four Standard Format Plan townhouses. In 2011 our townhouse was severely flooded due to river water inundation. Body Corporate insurance would not cover our loss. I have tried numerous times to get flood insurance for our entire complex however other owners will not agree. It is important to note that the other 3 townhouses were not as affected or not affected at all, by the 2011 floods. I am now trying to buy flood insurance just for our townhouse, but can’t find an insurer. What are the rules for flood insurance in SFP? Is there a duty of care component? Is there a way I can get flood insurance for my building? I have a high level of insurance for my contents.

– Jennifer, QLD

Hi Jennifer, schemes are usually registered under a standard format plan of subdivision if they are low-rise developments. An example is a townhouse complex where there is a building on each lot with a backyard or courtyard.

The body corporate must insure (for the full replacement value) each building that shares a wall with another building (known as a common wall).

The lot owner is responsible for insuring their own building if it is:

  • free standing – does not share a common wall with another building and
  • registered under a standard format plan.

    • The body corporate can set up a voluntary insurance scheme to insure buildings that do not have common walls.
    The owner of a lot with a free-standing building does not have to take part in a voluntary insurance scheme.
    An owner who does take part in a voluntary insurance scheme must:

  • tell the body corporate the replacement value of the building to be insured
  • comply with the
    o body corporate decision to setup the voluntary insurance scheme
    o insurance policy.

Each owner who takes part in a voluntary insurance scheme must pay part of the insurance premium—the fee paid to the insurance company.