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Topic
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I want to ask if as has been claimed by a Strata manager that it is “illegal” for a Strata committee to approve payment to a owner who has had irreparable damage kitchen appliances due to a cupboard falling off a common wall. Of note here the Strata insurance eventually accepted claim for repairs to the cupboards, flooring, windowsills and wall and has already paid out on the claims in full. There is more than enough insurance paid out to cover all repairs and replacement of appliances as well. The strata committee agreed to cover the costs of appliances lost but Strata Manager says it’s illegal to pay for appliances damaged and owner has to claim thru their home contents insurance, which by the way has already been denied by owners insurer as the cupboard falling is not related to any specific event. I would appreciate your feedback about whether there is a “ legal” issue here.
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Why did the cupboard fall off the wall? Not clear on what the owner’s insurer means by the incident not being related to a specific event, but anyway.
If as you say the insurer has paid out, and this covers the damaged appliances, then it is certainly illegal to hang on to that money. The money was paid out to cover the damage, you can’t just hang on to it.
I suggest the Committee tells the strata manager that ultimately it is their decision. It certainly isn’t illegal. If the manager thinks it is illegal then he/she needs to direct the Committee to the provision that they will be breaching – there isn’t one.
Why did the cupboard fall off the wall? Not clear on what the owner’s insurer means by the incident not being related to a specific event, but anyway.
If as you say the insurer has paid out, and this covers the damaged appliances, then it is certainly illegal to hang on to that money. The money was paid out to cover the damage, you can’t just hang on to it.
I suggest the Committee tells the strata manager that ultimately it is their decision. It certainly isn’t illegal. If the manager thinks it is illegal then he/she needs to direct the Committee to the provision that they will be breaching – there isn’t one.
Strata building insurance usually covers lot fixtures and fittings as well as common property. Sometimes this is more than what is legally required but none-the-less some lot property is usually covered. And the lot owner can claim where it is covered.
Strata building insurance does not cover lot contents.
That a screw failed in a lot fixture would not be an insurable event. It’s a defect or a failure. There would be likely no negligence for such an incident and therefore likely no liable party. So repairing the cupboard itself would be a lot responsibility.
But the consequential damage from the failure might be covered by strata building insurance where it damaged common property or other lot fixtures and fittings. Else other damaged lot contents might be claimable on the lot’s contents insurance (if the lot has any).