Reply To: OC back-dating insurance charges on studio

Thank you for your feedback

Apologies that my writing is unclear

The said by-law

“With regard to lot 10 the Owners Corporation states the Owners Corporation gave the previous owner consent to erect a studio room within lot 10 and adjoining and supported by the (Studio) common property.
A building certificate was issued by Hunters Hill Council dated 20 November 1997 in respect of approval of the said Studio.
The Owners Corporation by this By-law confirms its consent to the erection of the Studio and its continued existence.
The Owners Corporation assumes responsibility for the cost of insurance, maintenance and upkeep of the Studio as if it were “Common Property”.
The owner of lot 10 must reimburse costs incurred by the Owners Corporation in relation to the insurance, maintenance and upkeep of the Studio and also any costs in relation to registering amendments to the registered plan (tt any).
Wording obtained from Chamber Magistrate -Hornsby Local Court 31/10/89.”

Nothing of import can be added as to its history other than it is the first of the special by-laws  in the consolidation of  2021, and subsequent ones were approved as late as 2019, thus indicating it was passed prior to then. The SM is relatively new, they were unable to provide any further information or historical records and just deferred to the Committee.

This issue was triggered by water damage in studio following December storms and a query to strata whether a claim be made. No claim has actually been put forward. Actual damage is relatively minor ie carpet damage and some furniture but the issue has opened a can of worms.

Whether a redistribution of entitlements was previously discussed by strata is unknown. It is just an assumption that because it is being pursued now that no previous actions have been taken/agreed.

The strata claim, inter alia

“As per the by-law, all costs related to the insurance claim including but not limited to:

* excess

* increase in premiums in January 2025 and going forward that can be attributed to this claim

* a portion of the building insurance premium calculated in relation to square meterage of the studio or any other means agreeable to the parties from 2024 and going forward, will be reimbursed by the owner of lot 10 to the Owners corporation”

As I said in my last post, a insurance claim is not being pursued. However the concern is the position adopted by the strata and the possibility they will seek to formalise their position.  I would like to be able to rebut the unsoundness of their claims for excess and increase in premiums, as being outside the intent of the by-law, and the  (illegal?)burden of a separate calculation for insurance premiums for the studio, in addition to that already paid through levies.