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  • #8758
    dp15
    Flatchatter

      Hi, I am a one of the executive committee member of owner’s corporation living in NSW. We have block of around 30 townhouses. Recently,when I received expense report from my strata manager, there was a specific repair about ducted aircondition of a specific unit.

      Expense was claimed from the insurance by the strata manager and excess was passed to owners’ corporation. When I raised a question that while ducted airconditioning is serving individual lot, then it is that perticular individual’s responsibility to get it repaired. Out strata manager answered me “under normal circumstances the air conditioner would be the responsibility of the individual lot owner to repair/replace, however, in instances of fusion these are put forward to the strata’s insurance company for consideration under policy.  (fusion caused by uncontrolled events). This is something that the insurance companies have always done.” Then when I asked him another question: “why that owner is not responsible to paye excess for insurance claim?” and I got reply like: “The insurance policy is in the name of the Owners Corporation and not an individual.  There is no provision for a lot owner to pay for excess as they form part of the owners corporation.”

       

      I am not satisfied from the response. Strata law says that if airconditioning is serving a individual lot, then responsibility is on the individual owner. But, it doesn’t mention “DUCTED AIRCONDITIONG SYSTEM.”

      I want to clear my doubts on these topics:

      1)Is ducted air conditioning repair owners’ corporation responsibility?

      2)If not, but it covers under building insurance taken by Owners’ corporation, then owners’ corporation is liable to pay excess or individual lot owner?

       

      Hoping some solid reply with the legal facts so I can counter strata manager.

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    • #12945
      Whale
      Flatchatter

        Unless your Owners Corporation (O/C) has in the past resolved to create and register a Special By-Law covering Proprietors’ responsibility for the maintenance, repair, and replacement of air-conditioning systems serving only their lots, OR has included a statement of responsibility in any consent issued by it to the Proprietor when the system was originally installed, then…

        as some components of ducted systems including the ducting itself and the zone motors are located in the roof void, and that area’s Common Property, the O/C is responsible for those and any indeed any other components of the system/s that are located outside the cubic air-space of the Lot.

        So far as the insurance claim and the excess is concerned, the acceptance of a claim under fusion or any other component of your O/C’s Policy is entirely at the discretion of its Insurer, and from what you’ve advised in your post that’s the approach that your Strata Manager (SM) has taken. Again, in the absence of a Special By-Law or a statement of responsibility to the contrary, the excess on insurance claims is also payable by the O/C.

        Further insurance claims of this (and other) types may well result in increased premiums and/or a requirement for evidence of a regular maintenance regime for all air-conditioning systems being imposed by your Plan’s Insurer, but of greater impact is the possibility that your O/C’s responsibility could extend to the costs of replacing all Proprietors’ ducted air-conditioning systems if/when those fail, simply because the systems’ components are outside the Lot/s.

        That’s precisely why in my opinion your O/C needs to ensure that it enforces any Special By-Law or individual consents that may be in place, and if as I suspect none exists and if other Owners feel as you do, then your O/C needs to quickly put an appropriately worded Special By-Law in place by way of an item for consideration (by way of a Special Resolution) by Proprietors at a General Meeting; speak with your SM about the timing and the voting requirements for that. 

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