Question: Our unit has a leak from the bathroom into the car park due to a failing waterproof membrane. Should the strata insurance cover the cost to remove and replace fixtures and fitting during the repair process? The owners corporation has refused.
I bought a unit 4 months ago. We were recently advised that our unit has a water leak into the carpark below, impacting the car spaces of other units.
After investigation, it was found to be a failing waterproofing membrane and ingress leaks from a toilet that was not appropriately sealed to the floor. Mould is visible in this space on ceiling of the car park.
The entire bathroom will need to be stripped out to repair the membranes and drains. I have requested submitting an insurance claim to the owners corporation to cover the costs of removal and replacement of the fittings and fixtures. They have decline the request for submission. Isn’t this what strata insurance is for? I am happy to cover the excess.
Answer: It is unlikely the insurance will pay to cover the cost of the failed waterproofing and it therefore then falls back on the owner of the property to undertake appropriate repairs.
Water damage claims that involve leaks from failed waterproofing membrane claims are some our most contested claims with insurers because there is often a component of maintenance and also repair of damage. Insurers cover the cost to repair water damage but may exclude repairs costs related to fixing the leak (i.e. the damaged membrane) including tiling costs. Failed membranes often happen from excluded causes such as lack of maintenance, rust, oxidation, wear and tear, corrosion, gradual deterioration, developing flaws, building defects etc. However, the consequential damage (to insurable property) should be covered as water damage.
In this instance, it is unlikely the insurance will pay to cover the cost of the failed waterproofing and it therefore then falls back on the owner of the property to undertake appropriate repairs.
Unfortunately, it appears the new owner of the lot will be responsible for the costs as it does not form part of an insurance claim.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.