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I do not believe that the following statements are entirely accurate:
“For instance, if a pipe bursts in a common property wall, strata insurance will cover the repair and make-good, but it won’t cover the damage to private property that occurred in the first place.
That comes under home and contents or landlord insurance – and that often has an excess that the lot owner or resident has to pay”
I would refer you to a 1998 decision of the then Strata Schemes board in
Pascuzzo, Raffaele v Owners corporation SP 19289 [1998] NSWSSB 11 and on Austlii.
Although this is an old decision, the Board has been superseded and the Act amended, it is still good law. The relevant sections in the new Act are identical to those in the old Act.
my daughter successfully argued it in the CTTT a couple of years ago. I can provide you with copies of her submissions to, and judgment of, the Tribunal if of interest.
It in effect follows the long-standing law of torts that a party (the OC) who negligently damages, or causes, or allows by negligence or breach of duty (to maintain and repair common property)damage to the property of another (the owner) is liable for all the reasonably foreseeable damage that flows (no pun intended).
OC’s, Strata Agents and insurance brokers should ensure that their policies cover this.