Question: As a result of a burst pipe, our gas and electricity bills associated with hot water have increased. I can’t find any mention of this in our insurance policy PDS. If the responsibility for the repair falls to the owners corporation, should they also cover these increased expense?
Answer: If the owners corporation are responsible for maintaining the pipe, there may be a legal argument that they are responsible for the costs.
Cover for excess water usage will differ from insurer to insurer – for example, some insurers will offer cover if the insured property is damaged by an event covered by the policy. If the claim is just for a burst pipe from wear and tear, the policy usually does not respond.
The question of who is responsible for the water expense outside of an insurance claim best fits with a legal or strata management professional. If the owners corporation are responsible for maintaining the pipe, there may be a legal argument that they are responsible for the costs.
This post appears in the September 2022 edition of The NSW Strata Magazine.
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.