This article discusses avoiding strata insurance claims for water damage and explains when an owners corporation may choose to pay for repairs themselves to protect their claims history.
To improve an owners corporation’s claims history, are owners corporations fixing water damage issues rather than claiming the repair on strata insurance? In what instance is this an option?
Particularly where an owners corporation is trying to improve its claims history, there will be instances when an owner or owners corporation will decide it’s not commercial to lodge a claim.
Where an owners corporation is trying to improve its claims history, there may be instances when an owner or owners corporation decide it’s not commercial to lodge a claim.
Likewise, in some instances we advise some clients to refrain from making a claim when the claim is only a few hundred dollars. In this instance, there’s no benefit. It costs the insurer more to administer the claim than what they pay out.
For significant claims, it can be a commercial decision of the owners corporation whether they want to step in and pay for the repairs. There can be an argument that the owners corporation cannot pay for repairs inside a lot, so that’s another consideration concerning water damage claims.
Particularly where an owners corporation is trying to improve its claims history, there will be instances when an owner or owners corporation will decide it’s not commercial to lodge a claim.
If an owners corporation is looking to not lodge a claim, we recommend seeking advice from your insurance adviser on this.
This post appears in the August 2023 edition of The NSW Strata Magazine.
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