Burst pipe flood damage: Who pays for carpet and magnesite flooring?

In instances where there is damage to both building & contents, a claim must be made on both policies (contents & strata).

Lot owners should have contents/landlords insurance with a reputable insurer to cover property not insured by the strata policy and the basic principle is that property inside a unit should be covered by either the strata insurance or contents insurance.

In this instance, contents insurance will cover damage to carpet, but magnesite flooring that is a permanent fixture will be considered building and therefore claimable under strata insurance.

Generally speaking, a lot owner who has contributed to insurance premiums for a policy covering property they own can demonstrate an insurable interest in the policy and therefore is able to make a claim.

Where a claim is made, it falls on the insurer to either settle the claim less the excess or demonstrate the event that caused the damage or the property itself is not covered by the policy.