This article discusses owners corporation repair damage responsibility by explaining when an owners corporation must fix damage caused during repairs and when the cost remains the lot owner’s responsibility.
Question: The owners corporation engaged a company to repair our leaking shower. During the repair, the company damaged our shower screen. The OC will not fix the screen. Who is responsible?
The owners corporation engaged a company to repair our leaking shower. During the repair, the company damaged our shower screen. Their quote to the OC identified this might happen and that it would not be the company’s responsibility. The OC accepted the quote and engaged the company but will not accept responsibility to fix the shower screen. My insurer says it’s the OC’s responsibility.
Answer: The owners corporation can only be responsible for damage where the owner can demonstrate it is their legal responsibility.
The question is unclear whether the damage was repaired as part of an insurance claim or out of owners corporation funds. It is also unclear what caused the leak and whether the cause had anything to do with the owners corporation and the property it is responsible for (for example the leak happened on common property and caused damage to the lot).
There appears to be two considerations to this issue.
- What is covered by insurance;
- Who is responsible for repairs outside of an insurance claim
The owners corporation has a responsibility to take out insurance for building (including internal fixtures) in accordance with the strata management act. Damage that forms part of an insurance claim is paid for by an insurance policy that the owners corporation arranges on behalf of owners (and not the owners corporation).
Outside of an insurance claim, in the absolute majority of cases, an owner is responsible for maintenance inside their property including in this case the damaged shower screen. The owners corporation can only be responsible for damage where the owner can demonstrate it is their legal responsibility – for example, the owners corporations negligence caused damage to a lot. If the owners corporation are not legally responsible they can not lawfully pay for repairs inside a lot.
If the damaged shower screen was part of an insurance claim, we recommend the owner apply to the insurer for a variation to the claim.
This post appears in Strata News #519.
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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