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We are in discussion with our Strata Building Insurer who claim that ‘ …any fixture or fitting [F&F} which is attached to a wall, floor or ceiling, so as to become legally part of the structure..’, is covered by the OC’s Strata Insurance.
When pressed, they state that the term ‘ legally part of the structure’ is written in some NSW Strata Legislation. They have not provided an exact location for such a claim. Anybody know where I could find such a fact??
I know this is probably just a ‘loose’ definition by Insurers to separate Building cover from Contents cover, however if there is any concept of ‘legal’ ownership of F&F being transferred in a Strata Act it could have consequences for the OC responsibilities for maintenance and replacement.
My understanding is that the OC’s legal obligations are limited to the raw edge of the walls, ceilings, floors etc (with some obvious inclusions eg: external doors, windows.
Regards Geoff
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There are two overlapping concepts here.
For the purposes of maintenance, lot owners fixtures and fittings are owned and maintained by the lot owner. An example is built in wardrobes or kitchen cabinets.
For the purposes of insurance, some lot owners fixtures and fittings are covered by the OC insurance. The common determination is, if the building is turned upside down, anything that does not fall out is covered by the OC insurance. So built in wardrobes and kitchen cabinets are covered by the OC insurance.
I don’t recall thst this is legislated, but if you refer to the PDS of your insurance policy it will be explained.
On the complementary side, contents insurance for a strata lot does not cover the afore mentioned built in wardrobes and kitchen cabinets, because it’s covered by the OC insurance.
Its just one of the mysteries of strata.
I understand and agree with your reply.
My query was prompted by the wording of the Insurance PDS which states “…..fixtures and fitting attached ….so as to become legally part of the building…”
As you say, you doubt that this ‘transfer’ is legislated, but Insurance Cos are usually pretty tight with their wording.
If it does appear somewhere in NSW Strata Legislation it may have consequences for Strat v Owners responsibilities.
By the absence of other responses I guess nobody else has sighted the clause.
Thanks
Geoff
Really, I hadn’t noticed that.
But it’s not in NSW legislation, is it?But it’s not in NSW legislation, is it?
There is legislation and then there is accepted or normalised behaviour. If the insurance companies treat fixtures and fittings as if they were common property but strata schemes treat them as lot property, then that will be accepted until someone takes a case to the Court of Appeal and gets a definitive ruling.
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But it’s not in NSW legislation, is it?
There is legislation and then there is accepted or normalised behaviour. If the insurance companies treat fixtures and fittings as if they were common property but strata schemes treat them as lot property, then that will be accepted until someone takes a case to the Court of Appeal and gets a definitive ruling.
I got it. As long as everyone is happy with it, it stays the same. Thank you.
I am Victoria.
can you please clarify is a poly shower base is covered under the Oc insurance or landlord insurance?. This is attached to the building as you can’t take it with you. My OC said it’s my responsibility but my Landlord insurance says no.
Make a claim directly with the strata insurer and see what happens.
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