Burst hot water system-who pays?

I am in a block of 27 units and we have individual hot water systems under the kitchen bench. They are owner’s responsibilty. They have a life of about 10 years and are known to flood. One recently did just that and the owners were home but still did not act quickly to get a plumberr or shut down the water. The water poured out the slab and of course flooded their own unit and next door. Interestingly the strata insurance attended to the job. The neighbouring unit was luckily empty and because the magnesite was wet that has been replaced after the drying process (over a week). The owner will replace the carpet which has been dried out.

The owner of the unit causing this replaced the hot water system over 24 hours later. Their insurance came and took up the carpet and our insurance now continues the drying process, and will in a week’s time replace the magnesite and the kitchen cupboards damaged by the flooding.

Is this the way this is normally handled. I thought, owner’s hot water would mean owner’s insurance?