- This topic has 1 reply, 3 voices, and was last updated 5 years, 12 months ago by .
-
Topic
-
My Owners Committee has an issue that we can’t seem to resolve so was looking for some advice.
An owner who is also a member of the Owners Committee recently renovated their bathroom. It has now been damaged due to a leak from the apartment upstairs. Whilst I understand this is terrible for them I am try to get a clear picture on liability for the damage and repairs.
The leak from the apartment above was not a strata issue as it was from a pipe to the bath and is not on common property or in a common property wall. The owner of the leaking pipe accepted responsibility for the plumbing repairs to the pipe. However the damaged it caused to the apartment below is now being paid for by the Strata insurance, the first $5,000 paid by the strata as the excess payment.
When I questioned why we were paying for the repairs or Strata agent said it was probably just easier and that the owner of the damaged bathroom could potentially sue the strata as the water came through from upstairs.
However I’m concerned that paying this will open is up to paying for other damages in any lot that may not be our liability.
I feel the strata agent is looking for an easy end to this so is pushing us to put it on our insurance.
Could you advise if we are liable for these repairs.
-
Replies
-
Could you advise if we are liable for these repairs.
An OC must repair common property. The lot owner, who “owned” the burst pipe might be liable for the costs. That would depend on all the details. Negligence usually needs to be established.
Regardless of liability, damage to the building and common area contents and even damage to lot fixtures and fittings will be covered by the OC’s compulsory building insurance. Both the OC and the lot owners have that cover. Probably either could make a valid claim.
Who pays the excess is another matter. That’s legislated in some states. Where it’s not legislated, I’ve seen opinions that whoever makes the insurance claim should pay the excess. And I’ve seen opinions that it should be an OC decision.
Damage to lot contents is also another matter. That’s for the contents owner to decide. They can either claim on their contents insurance or make a claim against those they deem liable.