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Quick question: The glass balcony door is lot owned (building is over 50 years old). Tenant advises there is a crack in the door and wants to claim this on the OC insurance. This is not storm damage and there is no evidence that it was not cracked by negligence as we are in a windy spot and if the door is not clipped back it will bang and ultimately break. In other units the previous SM has made the owner pay but this SM is saying it is claimable on the OC insurance. Is that right? thanks
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In the circumstances as described, I’d say not!
This is what happens when some Strata Managers are tempted to ingratiate themselves to their Owners by defraying the costs of expenditure on legitimate repairs / maintenance (albeit possibly by the tenant in this case) by submitting those as claims against the Owners Corporation’s insurance.
Apart from the possible conflict of interest where these Strata Managers are both commission agents for the insurers and managing agents for the insured, all that results is the Owners Corporation (O/C) being judged a greater risk, with higher premiums resulting.
I’d be asking the Strata Manager to provide you or your Executive Committee with the completed Claim Form before submission – just to check how the circumstances of the damage has been described and justified.
Should everything be judged to be on the up-and-up such as where the O/C may have resolved to accept responsibility for glass balcony doors, then that raises the question of who pays the excess on the claim – perhaps they who caused the damage?