What Is Common Ground Insurance?
When multiple properties share outdoor spaces, gaps in liability protection can arise. Spaces such as driveways, pathways, or gardens that aren’t managed under a strata title can be left in a grey area of protection; but that’s where common ground insurance comes in.
Common ground insurance is a type of public liability cover that protects shared-use areas on properties that aren’t part of a formal strata scheme. It means that if someone is injured or property is damaged within a common area, the co-owners have the right safety net in place.
To learn more about this specialist cover, visit our Common Ground Insurance page at CGIB.
When It’s Required and Why It’s Needed
If your property has shared areas but isn’t under a strata title, you will likely share the responsibility for what happens there. That means if someone slips on a shared path or a visitor’s vehicle is damaged in a communal driveway, the financial and legal consequences could fall on you.
This type of insurance is particularly relevant for:
- Dual occupancies
- Battle-axe blocks
- Small subdivisions with shared driveways or laneways
- Multi-dwelling developments where no formal strata plan exists
What Does Common Ground Insurance Cover?
Common ground insurance is designed to step in when incidents occur in shared spaces that are not clearly covered by individual property policies. It typically includes:
- Public liability: If someone is injured while on a shared driveway, garden, or pathway
- Third-party property damage: For example, if a guest’s car is damaged due to uneven paving in the common area
- Legal expenses: Covering defence costs and settlements if a claim is made against the property owners
Real-world examples:
- Slip and fall: A guest trips on wet leaves in a shared driveway and sues for injury-related expenses.
- Vehicle damage: A courier damages a fence while reversing into a shared laneway, where liability could fall on all owners.
- Playground injury: A child is hurt playing in a shared backyard area, and the family lodges a public liability claim.
What Isn’t Typically Covered
Just like any insurance type, there are clear limits to what common ground insurance includes. Generally, it will not cover:
- Intentional or criminal damage
- Any issues occurring outside of the designated shared areas
- General wear and tear or required maintenance
- Damage to personal property or buildings not listed in the policy
It’s important to note that this only protects the shared areas of your home. If you want to protect your home and its contents, common ground insurance will have to be used in addition to a separate home or landlord insurance policy.
The Benefits of Having Common Ground Insurance
Having this insurance in place is about more than financial protection, it’s about providing full confidence and clarity to all co-owners.
- Helps avoid disputes between neighbours when an incident occurs
- Meets requirements often set by local councils, mortgage lenders, or development agreements
- Reduces the risk of being personally liable for significant injury or damage claims
- Makes it easier to split the cost of liability protection among all owners
How to Arrange Common Ground Insurance
Organising this kind of cover isn’t always straightforward. The protected areas are sometimes hard to define and a clear understanding of the property’s layout, who owns what, and which areas are shared is essential. That’s why it’s best to work with an experienced insurance broker who can assess your property’s unique structure and risks.
Not only this, but they’ll have the right level of expertise to recommend suitable coverage based on local council guidelines. They’ll also be able to source competitive premiums through established insurance networks.
At CGIB, we’ve been protecting Australian shared spaces for over 30 years. Whether you’re navigating a subdivision or dual occupancy, our brokers will support you in finding the right fit.
Professional Shared Property Protection
Have a property with shared access areas and no formal strata structure? You could be at risk if you don’t have common ground insurance in place.
Fill out our online form, or contact us on 1300 764 244 for professional advice on how to protect your property and co-owners with comprehensive cover.
Frequently Asked Questions
What is common ground insurance and who needs it?
It’s liability insurance for shared property areas where no strata scheme exists. It’s needed by property owners who jointly share spaces like driveways or gardens.
Is common ground insurance the same as strata insurance?
No. Strata insurance is for properties governed by a body corporate. Common ground insurance is for non-strata developments where owners still share responsibility for common areas.
Does it cover damage caused by tenants or visitors?
It may cover third-party injuries or damage if caused unintentionally in the shared area, but deliberate or negligent acts may be excluded. Always check your policy wording.
How are premiums usually shared between property owners?
Typically, costs are split evenly between owners or according to the terms of your co-ownership agreement.
What happens if common ground insurance isn’t in place?
Without it, each owner could be personally liable for their share of any compensation or legal costs resulting from incidents in shared spaces.
