Question: Water damage of a unit has been caused by a faulty appliance in a unit above. Who is responsible for the cost of the repairs or replacement to the damaged property and its contents?
Water damage of a unit has been caused by a leak originating in an above unit due to a faulty appliance eg dishwasher hose and not common property like a service pipe. As the water travelled through common property, is the cost of the repairs or replacement to the damaged property and its contents the responsibility of the owners corporation (and its insurer) or the lot owner (insurer) of the above unit?
Answer: The most obvious respondent is the lot owner with the faulty appliance as that is where the leak originated.
The strata insurance policy will cover water damage to building (insured property) associated with a water leak (subject to the policy terms & conditions) and this cover will be provided whether a lot owner is legally responsible for the damage or not.
The question of who is liable for damage not covered by insurance, resulting from a leak is a legal question that is best answered by a legal practitioner or strata manager.
In this instance, the most obvious respondent would be the lot owner with the dishwasher as that is where the leak originated and they are responsible for maintaining their property.
This post appears in the March 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.
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