Question: During strata insurance work to my lot, items were damaged. I’m to replace the items and submit receipts for reimbursement from the strata trust. Who owns the items?
I recently had strata insurance works to my lot after water ingress from a flood. During the works, the strata insurance builder damaged several items, such as my oven, sink, furniture and built-in joinery.
I claimed replacement costs. I’m to buy the items and claim reimbursement from the strata trust as they must approve the works or replaced items and then claim tax. As these items are taxable to the trust, who owns them?
Answer: The rightful owner of the mentioned items, which are part of a lot, remains the lot owner, and these items are considered the lot owner’s property.
It appears the insurer has settled the owner’s corporation for the damaged items. If the owners corporation is registered for GST, the insurer will settle the claim net of GST, as the owners corporation can later claim back the GST amount.
To facilitate the GST claim, the owners corporation requires invoices to be provided. Therefore, they have requested you to submit invoices before reimbursing the funds.
It is important to note that the insured building, including the oven, sink, and built-in joinery, is covered under the strata insurance. However, your furniture is not covered under the strata insurance. Since the insurer’s builder caused damage to your personal property, the insurer appears to have covered these costs and settled the claim in a similar manner as insured items, deducting GST and making the payment to the owners corporation.
Regarding the issue of ownership, even though the owners corporation is paying for the items to facilitate an insurance claim, the rightful owner of the mentioned items, which are part of a lot, remains the lot owner, and these items are considered the lot owner’s property.
This post appears in the September 2023 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.