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Topic
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Hello all, I own an apartment in a low-rise Melbourne block, run by an Owners’ Corp which, I think, is not attached to a formal strata management company. The chairperson is one of the owners, who is highly involved and has always been my liaison person. I haven’t always read the meeting minutes, and cannot find the rules, but I vaguely recall that she may receive what seemed to be a reasonable stipend for her work.
Recently, my hot water system burst, and caused damage to my apartment, two neighbours, and a small patch of carpet outside my apartment door i.e., common property.
The chairperson called in a carpeting company, who have charged $814 for their services to dry and restore the 1 sq metre portion of common property carpet – she has given me an invoice for this, to be paid to the Owners’ Corp.
In addition, she is claiming 2 hours x $60 for attending this work (with the fee going to the Owners’ Corp), as well as 3 hours x $90 for attending the initial middle-of-the-night emergency.
My insurance company is paying for my apartment contents damage. I put in a claim for third party damage (my plumber has certified that the hot water system malfunctioned unexpectedly) to cover possible eventualities – confusingly, the insurer has said that they will cover third party damage because the malfunction was unexpected (I gather if the malfunction was expected, they wouldn’t cover me), however, under the Waters Act, because it wasn’t something I could have foreseen or expected, I am not liable to third parties. This feels like they’re having their cake and eating it! If the malfunction was expected, then I would be liable to third parties but they wouldn’t cover it. If unexpected, they would cover it but I wouldn’t be liable. In other words, there would never be a liability they would have to cover!
My questions are:
1. Should I pay the $160 attendance fee + $814 for carpet restoration fee to the Owners Corp, as invoiced by the chairperson?2. Or should I politely advise them to claim this through the Owners Corp insurance (which I have contributed to, over the years)
3. Can the Owners Corp claim any excess payable on a claim arising from 2., from me?
4. Is it worth speaking to Consumer Affairs Victoria, and what clout do they have?
5. Should I be speaking to [my insurer]? (they haven’t been supereasy to either get hold of or speak to).
6. Are Owners Corp attendance fees to attend emergencies allowable, and if so, common?
Thank you in advance for considering my questions! The sums involved are not big, but am wondering what would happen if they were bigger – the chairperson had warned me a couple of months ago that if any more damage was discovered, they would let me know. This hasn’t happened, but she has also taken two months to issue me this invoice. Googling hasn’t given me answers!
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Replies
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I’m sure some of our Victoria readers will be all over this (hello, Austman!).
In the meantime, you have posted the same question twice in different posts (one now deleted) and named your insurer (now edited out). Either of these breaches of of rules would be a very efficent way of getting your question bumped off the site completely.
I really wish newcomers to the site would just read the rules before they start posting. It’s a small ask for providing free advice.
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the insurer has said that they will cover third party damage because the malfunction was unexpected (I gather if the malfunction was expected, they wouldn’t cover me), however, under the Waters Act, because it wasn’t something I could have foreseen or expected, I am not liable to third parties.
While it might seem odd, that is a very important point. You generally can only be liable for things that you have negligently caused. Insurance companies know this, so they will also know that the OC’s requests for payment from you are likely to fail because the OC won’t be able to establish your liability.
It means that, in the absence of any negligence, the OC must repair its own property. Else it must establish your liability in which case you can hand over any such claim to your insurance company who will no doubt write a very stern legal letter back to the OC.
For common property damages where there is no liability, the OC can choose to pay for them itself or claim on its own insurance. Once an insurance claim is made, it cannot also claim any costs from you. That is due to the insurer’s ‘right of subrogation’.
The chairperson is one of the owners … I vaguely recall that she may receive what seemed to be a reasonable stipend for her work.
In addition, she is claiming 2 hours x $60 for attending this work (with the fee going to the Owners’ Corp), as well as 3 hours x $90 for attending the initial middle-of-the-night emergency.
Neither of these payments would be legal in NSW. Does anyone know if they are kosher in Victoria?
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My apologies for excessive grumpiness. One week in self-isolation and I’m falling apart at the emotional seams. Hopefully we can answer all your questions.
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