An owner left a hose connected to a balcony tap, with the tap turned on. The hose came off the tap and flooded the owner's and two other apartments. Would this be a claim on insurance through the Strata or does the owner have to claim on their contents insurance?
As the strata insurance policy is the only policy that the building can be covered, it is therefore appropriate that a claim is made under the strata policy.
The Strata Management Act requires the owners corporation to insure “building” for total rebuild value.
Owners are unable to insure their building as separate policies and this is due to the basic principle that you can not insure part of a building. A strata policy covers “sudden & accidental” damage and there are no specific exclusions in strata policies referring to negligence by a lot owner (although some policies may have conditions related to intentional & deliberate damage damage).
As the strata insurance policy is the only policy that the building can be covered, it is therefore appropriate that a claim is made under the strata policy.
Damage to contents items such as carpet, furniture etc would need to be claimed on each lot owners contents or landlords insurance policy.
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Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.
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