Question: The remediation of damage from an incident requires the lot owner to vacate their premises for repairs. Does the strata insurer handling the claim have a ‘duty of care’ to the affected lot owner?
Answer: In the context of an insurance claim, insurers and their contractors have a duty of care.
Duty of care is an obligation imposed on individuals and organisations to take reasonable measures to prevent foreseeable harm or injury to others.
In the context of an insurance claim, insurers and their contractors have a duty of care.
Legal claims associated with duty of care and negligence can be highly nuanced and are considered on a case-by-case scenario by legal professionals and judges (if the claim ends up in court). Claims are never black and white, and legal liability will vary based on the circumstances. The outcome of such claims depends on various factors, including policy terms and conditions, foreseeability, reasonable care, proximity, breach of duty, causation, statutory duty and contributory negligence.
It’s crucial to understand that while the standard of care imposed on insurers is high, it is not unlimited. Policyholders also bear a responsibility to take reasonable measures to prevent foreseeable harm or injury and mitigate damage to the best of their ability.
If you believe the insurer has breached their duty of care, depending on the severity of the issue, you should first raise concerns with the insurer. In some cases, referring your concerns through the dispute resolution process may be appropriate. In more complex or severe circumstances, it may be appropriate to seek legal advice.
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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