Common property – home warranty insurance

In a strata building, the home warranty insurance company has denied liability in respect of an architecturally designed external feature wall, which in the short term rotted and continues to rot, as it was not able to withstand the elements. It is contended by the insurance company that it is a maintenance issue as the panelling was decorative plywood timber. and not structural. The owners corporation contends that the material used by the builder was not good and suitable for the purpose for which it was used, and that the feature wall was in fact a structural element of the building forming part of the external walls and roof of the building. The actual roof of this feature wall covered a storage area.

Relevant section of Home Building Act is S18B and Regulation 71 of the Home Building Regulation.