This article discusses townhouse burst pipe insurance responsibility and why repairs from gradual pipe corrosion are usually the owner’s cost.
Question: The water supply pipe in my townhouse that feeds the bathroom is in the wall. It recently failed and caused flooding but insurance denied the claim as the pipe had not been maintained. How do I maintain a pipe within a wall?
I own a townhouse. The water supply pipe that feeds my bathroom is in the wall. The pipe recently failed and caused flooding in the adjacent room and bathroom.
My insurance says the plumber said that the failure of the pipe was caused by corrosion which happened over time and was not a sudden failure. As such it is my maintenance issue and so I am not covered by the strata building insurance.
How can you maintain a pipe in a wall and is my insurance correct in that it is my responsibility to resolve the issue?
Answer: In most instances, lot owners at their own cost will need to maintain pipes as issues arise.
Water damage claims are our most contested claims with insurers because there is often a component of maintenance and also repair of water damage. Insurers cover the cost to repair water damage to insured property but generally exclude repairs costs related to finding and fixing the leak, as it generally considered the lot owners/owners corporation’s responsibility to maintain their property and such repairs relate to general maintenance or wear and tear.
Insurers have exclusions such as lack of maintenance, rust, oxidation, wear and tear, corrosion, gradual deterioration, developing flaws, building defects etc. Generally, leaks are only covered if the leak is caused from “sudden and accidental damage” such as impact damage, sudden blockage and storm damage.
For a pipe concealed behind a wall, is difficult to maintain other than as issues arise. Therefore in most instances, lot owners at their own cost will need to maintain pipes as issues arise.
Lot owners carry the cost of most maintenance issues inside their lot and generally insurance does not cover the costs associated with maintenance. This is one of the risks/costs associated with property ownership.
This post appears in Strata News #566.
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.
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