Burst flexi-hoses in apartments: Who is responsible and what insurance covers it?

Generally, strata insurance will cover damage to property insured by the policy, including water damage.

The basic principle is that if you pick the unit up and shake it anything that falls out is lot owners contents + temporary floorings such as carpet, blinds & curtains, appliances that are not permanently attached and paint & wallpaper (NSW) – these items are not covered by strata insurance and should be referred to the contents insurer to make a claim.

Strata insurers will cover the cost to repair water damage to insured property but generally exclude repairs cost related to finding and fixing the leak, as it is generally considered the owners responsibility to maintain their property and such repairs relate to general maintenance or wear and tear. The insurer has exclusions such as lack of maintenance, rust, oxidation, wear & tear, corrosion, gradual deterioration, developing flaws, building defects etc.

In the case of flexi-hoses the insurer will not cover costs associated with finding and fixing the burst hose (this will be the lot owners responsibility), but water damage to the building (insured property) can be considered.

Notwithstanding, insurers may apply an exclusion to flexi-hose claims if there has been a series of such claims. If there is an exclusion applicable to burst flexi-hoses in the policy, lot owners may be responsible for damage associated with the burst flexi-hose. The owner may also be responsible for any excesses associated with claims that originate from their unit.

It is not possible to insure property insured by strata insurance on any other policy – the strata policy should respond to damage to building/insured property. The only other insurance that can be considered is liability cover under a contents or landlords policy which covers legal claims against lot owners for damage to property they do not own (for example the apartment below you).