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A while ago the hose connecting the kitchen mixer tap to the wall connection burst flooding my unit. Initially the body corporate manager considered that the damage to the kitchen cupboard was covered by the Strata Insurance, but the Executive Committee has instructed him not to proceed with the claim. They consider that it is the same as a dishwasher hose bursting and so should be covered by my contents insurance. Who decides these things?
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Phi, coverage by strata insurance is one of those things that seems to be very much open to interpretation, firstly by Strata Managers many of whom are commission agents of the insurer, and then by the insurer themselves.
That said, I’ll stick my fins out by suggesting that even though kitchen cupboards are generally covered as “lot owners’ fixtures” under strata insurance, the “event” that caused the damage was a burst hose within the lot, and that I’m afraid makes the repairs your problem, and likely claimable under contents insurance provided the strata insurer provides written advice that it won’t cover the event.
As an Owner, there’s no impedement to you making your own enquiries with the strata insurer, but the above is how I see it.
Dear Whale, your suggestion to Phil to make his own inquiries with the strata insurer is a good one; however, if his SP’s insurer is the same or similar to ours, he won’t get any joy. Our insurer refuses to deal with the owners, apparently because the SM is the client, rather than us.
As an owner you can lodge a claim directly with the insurer. Request a claim form from the insurer, complete it and send it to the insurer. An owner does not need the permission of the strata manager, Executive Committee or the Owners Corporation to lodge a claim. I’m afraid I don’t agree with Whale on this the contents policy is not relevant as the damaged items are fixtures of the lot and are covered by the strata policy not the contents policy.
This is what insurance is for accidental damage caused by some sort of failure (the hose). I know these items belong to the lot (not common property) but they are still covered by the Strata building policy (just like the home insurance of a normal freehold house).
Your problem though is going to be the excess and you are liable for this (as it’s lot property that is damaged) so it depends on whether the cost of the repairs is greater than the excess or not.
If the cost is greater than the excess the Strata insurance should pay the balance (but the Strata might pick up this cost if not excessive to keep the premium down by avoiding a claim).
It’s the EC who decide whether to claim (not the SM) or not and so unless the cost is large your only choice is to fight it at NCAT with every chance of winning IMHO unless you can convince the EC to pay or lodge a claim.
Fair enough KWP, but I like larry’s suggestion (post #4); lodge a claim directly with the Strata Insurer and see what happens, because IF they formally refuse it (which I believe they will as the damage wasn’t due to any failure of the common property) you’ll need evidence of that if you then choose to lodge a claim on your contents insurance.
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