Who is Responsible for Insuring a Shared Driveway or Common Property in Australia?
Who is Responsible for Insuring a Shared Driveway or Common Property in Australia?
Who is responsible for insuring a shared driveway or common property depends on whether your property is part of a registered strata scheme. If it is, the body corporate or owners corporation is legally required to arrange public liability insurance and building insurance over all common property — including shared driveways, paths, gardens, and fences. If two or more properties share a driveway but there is no formal strata title or body corporate in place, the responsibility is less clear and the insurance gap is often discovered only after an incident occurs. This guide explains what is required in each situation and what to do if your arrangement is unclear.
The three situations where shared driveway insurance comes up
Most questions about shared driveway or common property insurance fall into one of three distinct situations. Each one has a different legal framework and a different insurance solution.
Strata scheme with an active body corporate
Two or more lots on a registered strata plan. The body corporate exists and functions. The strata legislation in your state requires the body corporate to insure all common property including the driveway. This is the simplest situation — the obligation is clear and the insurance is arranged through the body corporate as part of the strata policy.
Small strata scheme with no active body corporate
A duplex or small group of lots on a registered strata plan where the owners have never formally activated the body corporate or let it lapse. The legal obligation to insure still exists — but nobody has arranged the insurance. This is where the most common gaps occur and where an uninsured trip on a shared driveway can expose all owners to personal liability.
Shared driveway by easement — no strata title
Two properties on separate titles where one or both have a legal right to use a driveway on the other's land under a registered easement. There is no strata plan and no body corporate. Neither owner's standard home and contents insurance automatically covers public liability for the shared driveway area. This situation requires specific attention and the right insurance structure.
Situation 1 — Strata schemes with a body corporate or owners corporation
When your property is part of a registered strata scheme, the body corporate or owners corporation is legally responsible for insuring the common property. This is not optional — it is a statutory requirement under the strata legislation in every Australian state and territory.
Common property typically includes shared driveways, pathways, gardens, fences, letterbox areas, visitor parking, and any infrastructure below ground that serves more than one lot. If someone slips on the shared driveway, a visitor trips on a shared path, or a vehicle damages the common driveway surface, the claim is made against the body corporate's public liability policy — not against any individual lot owner's home insurance.
Situation 2 — Small strata schemes with no active body corporate
This is the most common and most dangerous situation for shared driveway insurance in Australia. It typically looks like this: a duplex or small group of two to four lots on a registered strata plan, where the owners know each other, manage things informally, and have never formally activated the body corporate or let it quietly lapse after the developer handed over.
The legal obligation to insure the common property still exists. The strata plan creates a body corporate automatically at registration — it does not need to be actively formed. But with no one formally taking responsibility, nobody arranges the insurance, and the common driveway sits uninsured for years.
A duplex in suburban Brisbane. Two lots on a strata plan, sharing a concrete driveway that runs between both properties to their individual garages. The two owners — one owner-occupier and one investor — have their own home and landlord insurance respectively. Neither policy covers the shared driveway because it is common property, not part of either lot.
A delivery driver trips on a cracked section of the shared driveway, injures their knee, and makes a public liability claim. There is no body corporate insurance in place. Both property owners are potentially jointly liable for the claim, the legal defence costs, and any compensation awarded. Their individual home insurance policies do not respond because the driveway is common property, not their individual lot.
A single strata insurance policy covering the common property public liability and the shared driveway structure would have cost both owners a few hundred dollars per year each. The claim without it can run to tens of thousands in legal and compensation costs.
What to do if you are in this situation
If your property shares a driveway with one or more neighbours under a strata plan and you are not certain whether common property insurance is in place, the steps are:
First, check whether a body corporate or owners corporation is formally constituted for your scheme by contacting your state's land titles office or strata regulator. Second, confirm whether any common property insurance policy is currently active by asking all lot owners whether they have arranged or contributed to one. Third, if no policy is in place, arrange one — a strata insurance broker can place a common property public liability policy for a two-lot scheme with nothing in common except a driveway. The premium for a small scheme is typically very modest relative to the liability exposure of leaving it uninsured.
Situation 3 — Shared driveway by easement, no strata title
The third situation is legally distinct and frequently misunderstood. Two properties on completely separate freehold titles where one or both has a legal right to use a driveway on the other's land — or over land that sits between them — under a registered easement. There is no strata plan. There is no body corporate. Just a registered easement and two neighbours sharing access.
Standard home and contents insurance covers public liability for incidents that occur on the insured property — which is the individual lot. A shared driveway subject to an easement sits in a grey area. If the driveway is physically on one owner's land, that owner's home insurance may provide some liability cover for incidents on it — but the easement holder may also face claims if they contributed to the hazard. If the driveway sits on land that neither party owns outright (such as common road reserve), neither home policy responds at all.
The practical solution for two freehold properties sharing a driveway under an easement is typically a standalone public liability policy arranged jointly by both owners, covering incidents on the shared driveway area specifically. A broker can place this and structure the premium split between the two owners in proportion to their use of the access.
What common property and shared driveway insurance covers
A strata or common property insurance policy for a shared driveway or common area covers two main categories of risk.
Public liability insurance
Third party injury and property damagePublic liability insurance covers claims from third parties who suffer injury or property damage on the common property — including the shared driveway. A visitor who trips on a cracked driveway surface, a delivery driver who falls on a wet path, or a neighbour whose vehicle is damaged by a pothole on the shared access are all scenarios that public liability responds to. This is the most critical cover for shared driveways because the injury risk to third parties is real and the legal and compensation costs of an uninsured claim can be substantial. Most strata legislation mandates a minimum of $10M to $20M public liability for common property depending on the state.
Common property building insurance
Reinstatement and replacement of common areasCommon property building insurance covers the cost of repairing or reinstating the common property itself — including the driveway surface, shared fencing, boundary walls, letterbox structures, and any other common improvements. A strata policy covers the common property against the standard insured events — fire, storm, hail, impact damage, and malicious damage. The sum insured should reflect the actual cost of reinstating the driveway and all other common improvements to their current standard, not the market value of the property. A strata insurance broker can arrange a rebuild valuation to confirm the correct sum insured.
What is not covered
Individual lots, contents, vehiclesA common property strata policy covers the common property only — not the individual lots. Each lot owner is responsible for their own building insurance, contents insurance, and landlord insurance for their specific lot. Vehicles parked or damaged on the shared driveway are not covered by the common property policy — vehicle damage is a matter for each vehicle owner's comprehensive motor insurance. Defects and maintenance issues that predate the policy are also typically excluded — strata insurance covers sudden and accidental events, not gradual deterioration of the driveway surface that should have been addressed through normal maintenance.
How the premium is split between lot owners
Levies and contribution sharingIn a registered strata scheme, the cost of common property insurance is typically shared between lot owners in proportion to their lot entitlements as set out in the strata plan. For a two-lot duplex with equal entitlements, each owner pays half. For a five-lot scheme with unequal entitlements, contributions are proportional to each lot's entitlement share. The body corporate collects contributions through levies and pays the insurer directly. In small schemes without an active body corporate, owners typically split the premium informally — though formalising the arrangement through the body corporate provides clearer legal standing and ensures the policy is correctly structured in the body corporate's name rather than one individual owner's name.
Kari Massey is a Senior Insurance Broker at Morgan Insurance Brokers and is the firm's specialist in strata, community title, and property insurance. She works with body corporates, owners corporations, strata committees, property investors, and individual lot owners across Australia — from large residential strata complexes through to small two-lot schemes where the only common property is a shared driveway.
The most common call Kari takes in the strata space is from a property owner who has just discovered their shared driveway or common property is completely uninsured — often prompted by a near-miss incident or a dispute between lot owners about who is responsible. For a small scheme, the process of arranging appropriate cover is simpler and faster than most owners expect, and the premium for a two-lot scheme with minimal common property is typically very modest. Kari reviews the strata plan, confirms what constitutes common property in the specific scheme, and arranges a policy that meets the legislative requirements for that state — without owners having to navigate the legislation themselves.
Frequently asked questions
Does my home insurance cover the shared driveway?
Almost certainly not, if the driveway is common property in a strata scheme. Standard home and contents insurance covers your individual lot — the building on your lot and liability for incidents on your lot. Common property is not your lot — it belongs to all owners collectively through the body corporate. Incidents on the shared driveway are therefore not covered by your individual home insurance.
If the shared driveway exists under a private easement rather than a strata plan, your home insurance may provide some public liability cover depending on the specific policy wording and how the driveway is described. Do not assume it does — check your policy's definition of the insured property and whether it extends to easement areas. If you are unsure, speak with a broker before an incident makes the question urgent.
We are two neighbours sharing a driveway. Do we need strata insurance?
It depends on how the driveway is set up legally. If your two properties are on a registered strata plan — even a very small one with just two lots — you have a body corporate and you are legally required to hold common property insurance including public liability insurance over the shared driveway. If you are on separate freehold titles with a shared driveway through a registered easement, strata insurance is not required but you should still arrange public liability cover specifically for the shared area, as neither owner's standard home insurance will automatically cover it.
The quickest way to find out which situation applies is to check your Certificate of Title — if it shows a strata plan number, you are in a strata scheme. If it does not, you are on separate freehold titles and the driveway arrangement is likely an easement.
What happens if someone is injured on our uninsured shared driveway?
If a third party — a visitor, a delivery driver, a tradesperson, or any member of the public — is injured on an uninsured shared driveway, the owners who share the driveway may be jointly and severally liable for the legal defence costs and any compensation awarded. In a strata scheme without active body corporate insurance, this liability falls on the individual lot owners personally.
Joint and several liability means each owner can be pursued for the full amount of the claim — not just their share. A $200,000 compensation award in a serious injury matter can be pursued in full against any one of the owners, leaving that owner to seek contribution from the others separately. Without insurance, those costs come directly from personal assets. Contact Kari to arrange cover before this situation arises rather than after.
We have a strata plan but no active body corporate. How do we arrange insurance?
A body corporate is created automatically when a strata plan is registered — you do not need to actively form it. It exists even if it has never held a meeting or formally transacted any business. All lot owners are automatically members of the body corporate from the date of registration of the strata plan.
To arrange common property insurance, the lot owners need to act collectively as the body corporate. For a two-lot scheme, this typically means both owners agreeing on a policy and having it issued in the name of the body corporate for the relevant strata plan number. A strata insurance broker handles the paperwork and confirms the correct entity name for the policy. The premium is then shared between the owners in proportion to lot entitlements. Contact Kari and she will guide you through the process for your specific scheme and state.
How much does shared driveway or common property insurance cost?
For a small two to four lot scheme where the only common property is a shared driveway, the annual premium is typically very modest — often $400 to $800 per year total for the scheme, split between the lot owners. Each owner's share of the premium is frequently less than $200 to $400 per year depending on the scheme size, the value of the common property improvements, and the public liability limit required.
The cost of an uninsured public liability claim on an unprotected shared driveway can easily run to $50,000 or more in legal and compensation costs for a minor injury, and significantly more for a serious one. The annual premium to avoid that exposure is modest by comparison. Contact Kari for a specific quote for your scheme — most small scheme quotes are turned around the same day.
Is our shared driveway covered if it is damaged by a vehicle?
It depends on the circumstances. If a vehicle belonging to a third party — a delivery driver, a tradesperson, or a visitor — damages the shared driveway surface, the repair cost may be recoverable from the vehicle owner or their comprehensive motor insurance as a property damage claim. The body corporate's common property building insurance may also respond depending on the policy wording and the nature of the damage.
Gradual deterioration of the driveway surface from normal vehicle use is a maintenance issue — it is not covered by insurance and is the responsibility of the body corporate to fund through levies. Strata insurance covers sudden and accidental events, not wear and tear. Lot owners who are concerned about driveway maintenance costs should raise this through the body corporate at a general meeting rather than expecting the insurance policy to cover routine maintenance.
Need to arrange cover for a shared driveway or common property?
Whether you are a lot owner in a small duplex who has just discovered the shared driveway is uninsured, a body corporate committee that needs to confirm your current policy is adequate, or a property investor with a shared access arrangement that does not fit a standard strata structure — Kari arranges the right cover for your specific situation at the right cost.
How to Reduce Strata Insurance Premiums
Premiums for stratas in Queensland are under pressure. Increases of 15-20 % are being observed, driven by factors such as rising building valuations, inflation in repair/maintenance costs, more frequent natural-hazard events, and insurers becoming more cautious.
Insurance is mandatory in many respects but there are practical steps a committee can take to reduce premiums.
This article sets out those steps, highlights what must be insured vs what may be optional, and addresses common (but risky) suggestions.
What Must Be Insured in QLD & What You Should Check
Before you focus purely on cost-cutting, you need to understand your baseline obligations:
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Queensland, every body corporate is legally required to hold compulsory strata insurance. This includes cover for the building structure and common property as outlined under state legislation.
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Beyond these mandatory policies, there are also optional covers that can be removed, such as or office bearers protection, for example which can be tailored to suit the specific needs and risk tolerance of each property.
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It is important to ensure your building’s sum insured reflects an accurate replacement value. Under-insuring can leave owners financially exposed if a major loss occurs, while over-insuring can inflate premiums unnecessarily.
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Factors such as proactive maintenance, absence of structural defects, risk-mitigation measures, and a strong claims history can all strengthen your position when negotiating premiums. A well-maintained property not only enhances safety but can also lead to more competitive strata insurance pricing.
Strategies to Reduce Premiums
Here are practical strategies that your scheme’s strata committee can adopt.
1. Improve the building’s maintenance and reduce risk
Regular Roof and Gutter Inspections
Blocked gutters and damaged roofing are common causes of water ingress and insurance claims. Schedule bi-annual inspections, especially before storm season, to identify leaks, cracked tiles, or rusted sections early.
Maintain Plumbing and Hot Water Systems
Burst pipes and faulty hot water systems are among the most frequent strata claims. Have a licensed plumber inspect shared plumbing annually, and encourage lot owners to replace aging flexi-hoses before they fail.
Fire Safety and Electrical Compliance Checks
Ensure fire alarms, extinguishers, and emergency lighting meet Australian Standards. Conduct periodic electrical safety inspections to identify outdated wiring or overloaded circuits that could cause fire damage.
Pest Control and Termite Management
Implement a regular pest control program to prevent termites, which can cause extensive structural damage not always covered by insurance. Keeping detailed inspection records also demonstrates proactive maintenance to insurers.
Structural and Facade Maintenance
Inspect external walls, balconies, and waterproofing membranes for cracks or deterioration. Timely repairs reduce the likelihood of costly structural or water-damage claims and improve the building’s overall risk rating.
Common Area Upkeep and Safety Measures
Keep pathways, carparks, and stairwells well lit and free of hazards. Installing non-slip surfaces, handrails, and signage can minimise liability risks and improve your property’s insurability profile.
Undertake risk-mitigation works
Reinforce Roofing and Windows in Cyclone-Prone Regions
In Queensland’s coastal zones, upgrading to cyclone-rated roofing materials, securing roof tie-downs, and installing impact-resistant windows or shutters can help prevent major storm damage and lower insurance costs.
Upgrade Fire Safety Systems
Install modern smoke alarms, sprinkler systems, and fire doors that comply with the latest Australian Standards.
Improve Drainage and Water Management
Ensure gutters, downpipes, and drainage systems are clear and effective to prevent water ingress and flood-related claims. Installing sump pumps or raising electrical systems in flood-prone basements can also reduce risk exposure.
Replace High-Risk Materials
Identify and replace combustible cladding, outdated wiring, or deteriorating plumbing materials that increase the likelihood of fire or water damage claims.
2. Review Your Policy Setup and Coverage
The way your strata insurance policy is structured can make a big difference to your premium. A few smart adjustments can help lower costs without compromising on essential protection.
Increase Your Excess
Choosing a higher excess (the amount you pay if you make a claim) can reduce your annual premium. This approach suits well-managed buildings with a solid maintenance record, minimal claims, and healthy sinking funds to cover minor repairs when needed.
Reassess Optional Cover
Not every add-on policy is essential. Review your existing coverage and consider removing optional extras that don’t apply to your building’s situation. For example, some liability or committee-related covers may not be necessary if your scheme doesn’t have those exposures. However, make sure any changes comply with Queensland’s legal insurance requirements, removing compulsory cover could leave your body corporate non-compliant or financially exposed.
Check Your Building Valuation
Premiums are directly linked to your building’s insured value. If your property is over-valued, you may be paying more than you need to. Arrange a professional valuation every few years to ensure your insurance reflects the true rebuilding cost, not an inflated estimate. Just remember: under-insuring can be just as costly in the long run if a major claim occurs.
3. Manage Claims Wisely
Your claims history is one of the biggest factors influencing your premium.
Avoid Small, Frequent Claims
Whenever possible, handle minor repairs through the body corporate’s maintenance budget rather than lodging small insurance claims. A high frequency of minor claims can make your building look higher-risk to insurers, driving future premiums up.
Promote Preventative Maintenance
Encourage all owners and residents to take responsibility for upkeep inside their lots such as replacing worn washing machine hoses or fixing minor leaks promptly. Preventing water damage and similar issues helps protect common property and keeps your scheme’s claims record clean.
What to Check Carefully (and What’s Risky)
There are some suggestions that appear often but must be treated with caution:
Not insuring for certain covers (e.g., “office bearers liability”) because you don’t have a committee:
- First check: Does your legislation or regulation require such cover? If so, you cannot remove it.
- If not required, then you may consider whether your scheme’s risk exposure justifies the cover or whether it is prudent to omit it. But removing liability cover because “we don’t have a committee” might expose the scheme to risk if a committee is formed or individual office-bearers act (and hence liability arises). You need to assess the risk carefully and seek professional advice.
Not insuring for flood insurance:
- Be very cautious. If your building is in a flood-prone area (coastal/river/flood plain), omitting flood cover may expose owners or lot holders to large loss. Some policies may exclude flood or treat flood differently, you must check the policy wording.
- Many insurer increases are due to natural hazard exposures; one way to reduce premiums is mitigation, not necessarily removal of cover. Also, note that omitting flood cover may affect resale value or financing.
Under-insuring the building (i.e., choosing a lower sum insured than replacement value):
While reducing the sum insured may lower premium, under-insuring can lead to serious problems, if there is a large claim and the insured sum is insufficient, the body corporate may have to top up. Good practice is to have the building professionally valued, and update regularly.
Summary Checklist for the Committee
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Get a recent building replacement valuation.
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Ensure you understand what covers are compulsory vs optional for your scheme
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Work with a specialist broker who can get multiple quotes and negotiate.
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Implement a maintenance and risk mitigation plan
- Consider higher excesses or selective cover removal
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Avoid making small claims if possible.
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Owners should understand what is being insured, how premium is calculated, what commissions/fees are included.
Partner with a Specialist Broker Like Morgan Insurance Brokers
Navigating strata insurance can be complex, especially when balancing mandatory coverage requirements with the need to control premium costs. This is where working with an experienced, strata-focused broker such as Morgan Insurance Brokers can make a significant difference.
Morgan Insurance Brokers specialise in residential and commercial strata insurance across Queensland and understand the nuances of local legislation, building risk profiles, and insurer appetites. Their team can:
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Compare quotes across multiple insurers to ensure you’re receiving the most competitive premium available.
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Review your current coverage to identify unnecessary add-ons or gaps that could leave your scheme under- or over-insured.
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Negotiate with insurers on your behalf, leveraging long-standing relationships and specialist knowledge to achieve fairer pricing and broader cover.
- Provide transparent advice around commissions, fees, and policy structures, helping committees make informed decisions with full confidence.
By partnering with a broker that genuinely understands strata insurance your body corporate can secure more tailored protection, better pricing, and the peace of mind that comes from expert guidance.
Final Thoughts
Lowering your strata insurance premium isn’t about cutting corners, it’s about being proactive and strategic. The goal is to make your building as safe, well-maintained, and low-risk as possible, so insurers view it more favourably. That means focusing on preventative maintenance, keeping your building in good condition, and making sure your insurance policy accurately reflects your needs, not paying for extras you don’t require.
While broader factors like natural disasters, rising construction costs, and inflation can push premiums up across Queensland, there’s still a lot within your control. A well-managed body corporate, with regular maintenance, a clean claims record, and the support of a specialist strata insurance broker like Morgan Insurance Brokers, will always be in a stronger position to negotiate fair pricing and secure quality protection.
