Flat Chat Strata Forum Common Property Current Page

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  • #8570
    ceade
    Flatchatter

      Dear Jimmy,

       

      Would you be able to help me with who is responsible for water damage in a strata unit.

       

      My neighbour had an unfortunate welcome home on Monday evening when she found that the hot water system had burst.  The water covered her apartment floor, leaking onto common property near the stairwell and drenching the storage room underneath the apartment.

       

      My neighbour is an owner-occupier.  When she bought the apartment, some renovations had been done, which included a floating timber floor placed on top of the existing parquetry floor in the living room, hallway and bedroom. The kitchen floor had tiles laid which were also part of the renovation.

       

      The apartment blocks are 43 years old.  The floor has a cement foundation. We are aware that the materials used in cement back then has a substance that reacts with the reinforcement steel when water comes into contact with it, thus creating ‘concrete cancer’.  This aspect is one of our concerns.

       

      The other concerns are related to ‘who is responsible’ for the clean up of damage.

       

      My neighbour called her house and contents insurer the same evening and a representative arrived later that night to inspect the damage.  The water had gone under the floating floor, leaking through the floor to the storage room underneath and through to a corner in the entrance under the stairwell.

       

      Over the last three days, the house and contents insurer has had representatives out to inspect the damage.  The incident was reported to the Owner’s Corporate emergency services on the night but strata still hasn’t had anyone out to have a look.

       

      The house and contents insurance company (GIO) is claiming that it is a strata problem while the strata manager is claiming the issue is an insurance problem for the owner’s insurer.  And so the story goes.

       

      The questions I’m hoping you can help me with are:

      1.  Who is responsible for what?

      2.  Is the original parquetry flooring (under the floating floor) covered by strata?

      3.  If the entire floor has to come up to be treated for potential ‘concrete cancer’, is this a strata matter?  Wouldn’t the foundations of the building need to be preserved after this catastrophe?  Does strata need to ensure that ‘concrete cancer’ is prevented and/or treated?

      4.  Does strata have a responsibility to inspect the damage?

      5.  What measures can be taken to expediate ‘damage control’ or prevent insurance company merry-go-round so a solution is identified and put in place as quickly as possible without undue or further inconvenience to the owner?

       

      Thank you for your help.

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    • #17229
      scotlandx
      Strataguru

        Was the hot water system the owner’s or the owners corporation’s?  That is your starting point, because if it is the owner’s corporation’s hot water system they are liable for the damage. 

        From what you have said however, it sounds like the hot water system belongs to the owner, so in the face of it she is liable for all the damage, as it is her system and she is responsible for it.  By way of example, if someone is driving their car on the common driveway and has an accident and damages a building that is common property, they are responsible for that damage.

        The problem you may have is that the owner has home and contents insurance but she may not have more general liability insurance.  If she isn’t covered for the more general damage, then the strata is in a bind because they have a responsibility under section 62 to maintain the common property, they have to fix the damage.  So if she isn’t covered, the strata would have to fix it and claim on their insurer, and the insurer then has the option to pursue a legal claim against the owner, on the basis that she is responsible for the damage.

        Re your questions:

        1. see above.

        2. the original parquetry flooring is the responsibility of whomever is liable for the damage, it doesn’t matter whether it is common property or not.  If that floor is damaged you could probably replace it with something else, if there was a floating floor over it.

        3. Yes the strata should do thorough investigations to ensure that any possible concrete cancer is dealt with.  Given the age of the building, that puts it right in the concrete cancer problem zone.  Liability could be arguable as there may already have been concrete cancer there, and you would need to get advice on that.

        4. Yes the owners corporation should inspect the damage as a matter of utmost priority, I am surprised they haven’t already considering the extent of the damage which sounds awful.

        5. Insurance companies always give you the runaround, they make money from not paying out claims.  The best thing you can do is contact your insurance company as a matter of urgency and explain the situation, they have an interest in this being resolved, and they can deal with the other insurance company.

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