Lia_WhitbreadInsuranceBrokers

HiJim,

The insurance answer to this is not that simple.

Generally strata policies cover impact damage. Normally pipes are considered part of the strata building and insurers all apply different policy limits. There are many things to consider such as, what is the excess under the policy and who pays? Can a landlord recover costs from a tenant? What is in the lease agreement and will the bond be sufficient to cover the cost of the damage? Is this a claim under the tenants car insurance? If the Strata lodges a building claim, can the insurers recover the cost of the claim from the tenant?

The other big factor is if there is a claim made under the building policy, will the Strata be penalised on future renewal premiums and increases to excesses? So you can see it is not as straight forward as we all would like trying to determine who is responsible for paying the costs of the damages.

Landlords need to aware that the building forms part of a strata and it is still their responsibility for maintaining and repairing their property. From my perspective, it is prudent that professional advice is sort to ensure that the strata policy complies with state regulations and adequately protects the interests of the Owners Corporation and property owners.