Good day nb525,
Sorry to hear of your calamity.
I asked a building manager who has seen such issues many times before. He informs me that he understands the situation is as follows:
1. If the cause of the water leak is a common pipe servicing the unit above, then the strata scheme (i.e Owners’ Corp) must make good any damage to strata assets such as your ceiling, windows, built in cupboards etc, because the pipe is an Owners’ Corporation asset;
2. But if the cause is the hot water tank, then liability is on the shoulders of the unit holder whose tank blew, personally or via his insurance; and
3. Regardless of whether (1) or (2) took place, damage to your carpet, clothes, electrical appliances etc is your responsibility. Either you claim on your contents insurance or you need to pony up the money for repair or replacement. Neither the strata nor a neighbour are liable for damage to your contents.
I hope this clarifies the issue.