Cracked Bath due to Installation Defect at time of Strata Fit-out

 My unit has a built-in bath which was part of the original Strata fit-out. The bathtub has sustained a crack which was only discovered when I called in a plumber to investigate water damage to the base of an internal wall (bath butts up to the other side of this wall). He discovered a fracture in the bathtub which opened up into a crack when pressure was applied. Water has been escaping through the fracture into the bath-wall cavity. Silicone has been applied to the crack as a temporary repair. To permanently fix the problem I was quoted $2000 to reline the bathtub or $7000 to replace the bathtub – which seems very high!

I subsequently made a claim for the repair/replacement of the bathtub against the Strata’s Insurance policy but the claim has been denied because the crack has been deemed to be caused by a structural defect (i.e. bathtub was installed without adequate support under the base). Had the cause been an insurable event (i.e. accidental damage) it would have been covered under the Strata’s insurance.

The building (originally a hotel built in 1990) was converted to a Strata in 2002 which was when I bought in.  I am not sure whether the bathroom
fit-out is original or was done by the Strata Developer but it looked brand
new. The 7 years Builders Warranty period has expired anyway. All the units in the Strata have the same bathroom fit-out and so it is likely this problem is going to occur in other units. I know of mine and one other so far.

My Strata Manager says “The Owner owns the bath, the Owners Corporation has an insurance policy that  covers Owners fixtures & fittings. Any defect within the Lot would be the individual Lot owners responsibility to repair.” 

Given all of the above is this correct? Is each Lot Owner individually responsible for fixing the problem rather than the Owners Corporation as a whole? In their report,  the Insurance Assessor stated the “cost of any reinstatement will be one for the Owners Corporation to address”.   

Thanks in advance for any advice you can provide,

Tamara