Lady Penelope said The Lot Owner is responsible for any damage caused by a leaking HWS.
I don’t believe that is correct advice.
A lot owner might be responsible for any maintenance and any replacement of a HWS but is not necessarily responsible for any subsequent damage caused by a leaking HWS unless legal liability can be established.
To be legally liable for any subsequent damage usually requires negligence to be established. That’s very hard to establish in the case of leaking water systems. Where was the negligence?
I have dozens of insurance situations in my strata experience that back up what I am saying.
Lady Penelope said I would question why the OC paid for the repairs to the water affected apartment(s).
Because the OC has insured that event and the property (lot property fixtures and fittings) that was damaged? In other words it’s an insurance claim issue, not the OC paying for the affected apartment(s) issue?