Question: I claimed on the strata insurance. The insurance paid the money to the owners corporation to be reimbursed to me when work was completed. Months later, I still haven’t received the money. Can the owners corporation withhold my money?
I made an insurance claim on the strata insurance. The claim was approved. The owners corporation instructed the insurance company to deposit the money in the strata account for accounting purposes. The owners corporation instructed me to pay for the approved repairs and send receipts for reimbursement.
After three months, I’m still waiting on the reimbursement of my money. I’ve been told the owners corporation is chasing $12k in arrears. Once the late levies have been paid, they can pay me. They have offered to credit the amount to future levies, but I need the money now.
Can the owners corporation legally withhold the insurance claimed money?
Answer: The strata cannot withhold your reimbursement.
In the first instance, you should demand immediate reimbursement and ask that a special levy be raised due to their shortfall in funds. If the funds were properly due to you, the strata cannot withhold your reimbursement.
This post appears in the December 2023 edition of The NSW Strata Magazine.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440