This article discusses fridge leak neighbour damage liability insurance and explains how a contents policy may respond to legal claims for damage to a neighbouring lot.
Question: Our fridge leaked and damaged our neighbour’s flooring. They have no contents insurance so they are claiming the full amount from us. Is this covered by our insurance?
A leak from our fridge went through the wall between our apartment and our neighbour’s apartment causing damage to their wooden floor. They have no home contents insurance so are claiming from us the full cost of replacing the floor. Can we claim anything from our strata insurance for are we liable for the whole cost?
Answer: In this instance the claim by the adjoining property is a legal liability claim for property damage to their lot.
We will work on the presumption the flooring is temporary flooring and thus not covered by strata insurance.
We recommend lot owners take out contents/landlords insurance with a reputable insurer to cover events not insured by the strata policy. The basic principle is that between the strata & contents insurance, most accidental events should be claimable under either policy.
In this instance the claim by the adjoining property is a legal liability claim for property damage to their lot.
Most contents policies will have cover for legal liability (public liability) for damage to other peoples property that the policy holder is legally liable for.
For legal liability claims, the contents insurer will indemnify the lot owner and determine whether they are liable for the damage to the adjoining lot. If so, they will make a settlement accordingly. If not, they will deny liability on behalf of the owner and provide their reasoning for the decision.
So my recommendation to the lot owner is to speak to their contents insurer and commence a claim under the public liability / legal liability section of the policy.
This post appears in Strata News #527.
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.