NAT: Shower leak floor damage: Who pays the strata insurance excess and repair costs?

This article discusses shower leak strata excess responsibility and who pays when water damage isn’t covered as sudden and accidental.

A lot owner had damage to her floors caused by a shower leak. Who pays the excess and who should pay for damages?

I am one of the owners of a unit complex of 3 townhouses. Recently, one of the owners had some water damage to her floors caused by water running down the walls from the shower. An inspection showed there was no water proofing membrane installed behind the tiles in her bathroom. She has made a claim with Strata insurance.

Who pays the excess and who should pay for damages? Can you only claim insurance if a building is less than 7 years? Our building is almost 20 years old.

The policy only covers “sudden & accidental” damage.

Firstly, there is no time limitation on making a claim under strata which covers “sudden & accidental damage” – but there is a time limit on claiming under builders warranty which covers rectification of building defects and faulty workmanship.

Repairs associated with finding and fixing the membrane are therefore not covered. This can include removal of tiles and applying a membrane.

The only portion that may have some prospect of success is resultant water damage but in instances where the damage has happened over a prolonged period of time getting a claim paid can be frivolous as the policy covers “sudden & accidental” damage.

With regard to who is responsible for the excess, it is generally a matter between the owners corporation and lot owners to determine who is responsible – for claims effecting 1 lot only it is usually paid for by the lot owner unless the owners corporation decides it is fair in the circumstances for the body corporate to bear the cost.

For matters that are not covered by insurance, the owner is responsible for any repairs inside their lot.

This post appears in Strata News #442.