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Our complex of 60 units ( 4 adjoining blocks) and is almost 20 years old. We have always had our complex fully insured and from memory cost is around $30Kpa. We have had a couple of minor claims during that time, and only one major claim about 10 years ago due to a break and enter where all video cameras were stolen or damaged and replacement cost was close to $40K. We recently noticed large cracks in basement garage area (floor and wall) and are in the process of getting engineers to inspect to determine what is causing problem and what is required to remedy. Their initial thoughts are that the adjoin wall between 2 of the blocks is separating and have discovered movement and cracks from the basement to the top floor. While they are still investigating and preparing a full report it appears we have a major structural problem that will need attention. We contacted our Strata Manager to confirm we would be covered by our insurance and were stunned to be told no insurance company covers structural damage. so no use submitting a claim. Is this correct? . We don’t have some sort of budget insurance cover, its based on property valuation etc. We always obtain 3 quotes at renewal time from major insurance companies who specalise in strata insurance, what else are we supposed to do. Is it the terminology “structural” ?
Thank you
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It depends how the damage was caused. We’re going through this at the moment in our block.
One unit has severe cracking in their brickwork. There was a leak in a nearby sewerage pipe that has now been repaired.
This was discovered there was a blockage in the sewerage pipe that needed to be cleared.
Around the same time a tenant drove their car through a brick wall near where the cracking was and when the insurance company was determining how to fix the fence they realised that the ground had sunk leaving the footings unable to support a new fence.
The collision did not cause any damage to the cracked brick wall.
The insurance company has advised that if the cause of the brick work cracking was as a result of earth movement caused by the leaking sewerage pipe it will be covered by insurance. If the cracking was caused by general earth movement then it’s not covered.
The insurance company has commissioned an engineer’s report to determine how the earth moved for the purpose of fixing the fence that will also be applicable for the cracked wall.
You have a long road ahead of you and be prepared to end up paying for it yourself.