Question: The hot water system in our burst. Water leaked into the common area hallway and damaged the carpet. Who is responsible for the cost of repair to the common area carpet?
The hot water system burst in our unit. Some of the water got out into the common area hallway. Who is responsible for the cost of repair to the common area carpet?
Our insurance company says we are only covered by landlord contents and therefore this should be covered by strata insurance. The strata company says that as it was a direct result of our hot water service, we are responsible for the cost of repair to the common area carpet.
My concern is, what if my unit burnt to the ground and caused hundreds of thousands of dollars worth of damage to the common area, who pays for that?
Answer: The owner of the hot water system can be liable for the damage to common property.
There are two questions that need to be answered here. Who is responsible? How does insurance respond?
The question of legal responsibility is best answered by a legal practitioner – however, it is my understanding the owner of the hot water system can be liable for the damage to common property.
In relation to insurance, the first option available to the lot owner is to lodge a claim under the legal liability section of your landlords insurance policy. While a landlords policy is intended to cover landlords contents only, there is also a section in the policy for legal/public liability which is designed to cover damage to other persons property that you are legally liable for. I would recommend asking your insurer to specifically provide a response to your claim considering a legal/public liability claim.
Alternatively, a claim can be made under the strata insurance for damage to the common area carpet. The owner of the hot water system may however be responsible for the excess.
This post appears in Strata News #560.
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