Austman said:
So OCs and OC's insurers often seem to initially say “we do not cover internal lot carpets or paintwork etc”.
For some it's ignorance, for others it's a deliberate cop-out. But if a failure in common property causes damage in anothe property it is the OC's responsibility.
It doesn't make any difference if a) wear and tear on paintwork and carpets are the lot owner's responsibility; b) the OC is inadequately insured. The OC can't throw the cost back on the lot owners and say “sorry, we weren't insured so we're not paying.”
It's a double fault for not maintaining common property properly and for not being adequately insured.