#21667
DWDuck004
Flatchatter

    The Insurer holding the policy for the Owners Corporation would not cover the costs associated with any rectification of the cause of a leak. The policy will only cover the costs associated with the reinstatement works.

    this however leads to a an issue where the insurer may decline a claim made by the OC where the relevant works on the roof are not undertaken. The OC has a responsibility to mitigate damages caused by the flow of water as soon as practically possible. I have represented OC’s in VCAT (Victoria) where an OC, although did their best to make the relevant repairs to a roof, all the while following the Act in relation to resolutions and due diligence, where subject to an order to make the relevant repairs and pay a ‘Loss of Rent’ to the owner of the affected apartment.

    In my opinion, the costs associated with the repairs, if no longer claimable under the OC’s insurance policy, can be claimed through the Owners Corporation. And you may need to apply to the relevant competent court of jurisdiction to do so. However before doing this I would be writing to the committee and detail that you would like them to action a plan to rectify the leaks permanently, and cover the losses incurred by the persistent leaking. 

    If they then fail to respond or engage you, this will strengthen your case.