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  • #8945
    Investor13
    Flatchatter

      CryCryCryCryRepairs, both inside our Unit (in all living areas and all bedrooms) and outside our Unit (on our 30 metre wide deck and on all decks above our Unit) have been agreed to under Insurance.

      Repairs relate to correcting long term water penetration and the subsequent deterioration of walls and ceilings inside; and calcification on deck walls, glass doors and windows, and floor tiles outside. Inside, there is to be sanding back of concrete walls and ceilings, and painting. Outside, there is to be extensive use of acid, water blasting and painting on our deck and the removal of edge tiles on all decks above our Unit.

      The Insurer agreed to the relocation of all occupiers but apparently, the Developer (who will be held  liable for all costs by the Insurer) is able to first try to remedy the faults and has not agreed to relocate the occupiers, in particular ourselves who are most affected.

      Are we entitled to be relocated while these repairs are completed?

      Please do not print.

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    • #19076
      kiwipaul
      Flatchatter

        You need to check your insurance Product Disclosure Statement (available online to download) and see what it says mines says

        POLICY 1

        up to 15% of your building sum insured for temporary accommodation costs and loss of rent (see Special Benefits 1a and 1b of Policy 1);

        SPECIAL BENEFITS

        1 Temporary accommodation / rent / contributions / storage a Temporary accommodation

        When You occupy Your Lot/Unit

        We will pay the reasonable cost of Temporary Accommodation You necessarily incur if Your Lot/Unit is made unfit to be occupied for its intended purpose by:

        i loss or damage that is admitted as a claim under Policy 1; or

        My understanding would be that if you have an insurance claim it’s the insurer you would talk to and if they have agreed relocation it is up to them to pay for you to be relocated (as per your policy) and for them to claim it back from the builder. Let the builder and insurance fight it out just ask for your rights under the insurance policy.

        #19078

        KP – I believe that Investor13 is probably referring to a claim against the Home Owners Warranty Insurer since we are talking about failure of waterproofing membrane – not a claim against the OC’s building insurance. Temp. accom. is usually offered by the building insurance only where the damage being rectified is due to an insurable event. Specifically, building defects will not be covered.

        Investor – Statutory warranties under the Home Building Act mean that it is the principal contractor (builder) who is responsible for rectifying defects, (usually) not the developer (unless it was a developer/builder).

        Depending on when practical completion of the building was, it is likely that the Home Owners Warranty Insurer will only pay out a claim if the builder becomes insolvent.

        If the building is insolvent and the HOW claim is valid then I do not see where the developer comes into it?

        The defect claim & rectification process is a legal minefield and it is clear that you need to obtain legal advice regarding your individual circumstances.

        #19082
        kiwipaul
        Flatchatter

          @just get on with it said:
          KP – I believe that Investor13 is probably referring to a claim against the Home Owners Warranty Insurer since we are talking about failure of waterproofing membrane – not a claim against the OC’s building insurance.

          I believe you could be right as I didn’t understand why the Strata insurance had accepted responsibility for what was a building defect. So OP needs to examine what the Product Disclosure Statements (PDS) says for the Warranty Insurance.

          BUT if the insurance firm has already agreed to provide temp accommodation in writing just take them up on it and again let the builder and insurance firm fight it out.

          Seems to me the insurance firm dropped a clanger agreeing to relocation costs if it is not covered by the PDS. But if OP has this in writing the insurance firm will have trouble wriggling out of paying for it.

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