Question: Water pipes passing through common property burst during a fire in the lot directly above us and caused water damage. Is the owners corporation responsible?
Water pipes passing through common property burst during a fire in the lot directly above us and caused water damage. Is the owners corporation responsible for the drying out and dehumidification of our lot, given that water flowed into our ceiling, down walls, and up through the concrete slab floor?
Answer: The first point of action is to consider whether the damage is covered under the strata insurance policy.
If there has been a fire in the lot above that caused water pipes to burst, leading to water ingress into your lot, the first point of action is to consider whether the damage is covered under the strata insurance policy. In these situations, it’s typically not about assigning blame to any party but rather managing the incident through an insurance claim, which is what strata insurance is designed to address.
Strata insurance generally covers sudden and accidental damage to both common property and internal lot damage to property classified as building as defined by the Strata Schemes Management Act 2015 (NSW). Drying out, dehumidification, and rectification of water damage to your ceilings, walls, and floor are often included in such claims, provided the insurer accepts liability under the policy terms.
Outside the insurance process, responsibility can become more complex. Key factors that may influence liability include:
- Ownership and maintenance obligations – whether the pipes were part of the common property (making them the owners corporation’s responsibility) or belonged to the individual lot.
- Negligence – if, for example, the fire was caused by negligence on the part of the lot owner or if the owners corporation failed to maintain the pipes in good working order.
That said, the most practical and efficient course of action is to lodge a claim under the strata insurance policy. This ensures timely repairs and avoids delays caused by protracted investigations into fault or liability. Once the claim is lodged, the insurer will assess the cause, determine coverage, and proceed with the drying, dehumidification, and other necessary restoration works.
This post appears in the July 2025 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.