I’d agree with kiwipaul. Whether the pipe which burst was serving more than one lot is irrelevant when it comes to insurance. Insurance cover paid by the Owners Corporation is for the buildings, and extends to more than just common property. Apart from your pipes in the walls it covers such items as toilet suites, sinks and vanities, and kitchen cupboards. Virtually the same as if you were insuring your own house on a separate title. Contents insurance covers those items which you typically bring with you when moving house, and also such inclusions as carpets and curtains. Of course when it comes to claims you are not covered for fair wear and tear or deterioration of such items. Damage must be sustained from some unexpected event such as impact, storm damage, fire, earthquake or whatever else is in your policy documents. Unfortunately little beasties such as termites aren’t a part of it. If there is consequential damage to the unit owner’s (or tenants) possessions then I have some difficulty in seeing the fairness of having the OC subsidise payments to just those residents who fail to adequately insure their contents.