@Austman said:
I would have thought the damage would be covered by the OC’s building insurance.
Different insurers have different policies but yes, that would normally be the case. However, there may be an excess and the strata committee would have to decide who paid that.
Even if the damage was due to an owner’s negligence, I believe the owner has a right to request a claim on the OC’s building insurance.
Only the holder of the policy can claim and that’s the owners corporation. Building insurance doesn’t cover private property unless that property is damaged by defective common property and a claim is made against the OC (and even then …). If the damage was caused by the owner’s negligence, the OC might claim against the lot owner for the amount of any excess.
An owner, being part of the OC, has contributed to the insurance policy and should be automatically covered. It’s different for a tenant who is not automatically covered.
Most building insurances don’t cover individuals, whether they are owners or tenants. Strata insurance covers the whole block for damage to or by common property (e.g. if balustrade glass falls and injures a passing pedestrian).
Home and contents insurance covers the individual owner’s lot and its contents. Landlord insurance covers the landlord for damage to their property (and, depending on the policy, damage to common property) by tenants.
Strata insurance is all about common property, plant and equipment and any private property that is under the care and control of the owners corp.
If the EC refuses to claim, the owner could try claiming directly.
Any claim would have to be against the Owners Corp (who might then claim against the insurer). The insurer probably would not entertain a claim from an individual owner.
As for excesses, it’s usually the claiming party that has to pay them. Generally the OC claims for common property damage while owners claim for lot property damage.
Correct – but these are different issues. In NSW the ‘Who’s responsible …” document states that, for instance, in the case of a burst pipe in a common property wall damaging the contents of a unit, the OC is only responsible for the damage caused in repairing the defect, not in the damage to personal property caused by the defect. That would have to be covered by home and contents insurance.
FYI: Our sponsors CHU offer a discount on Home and Contents premiums if your strata insurance is with them.