The hot water system in our burst. Water leaked into the common area hallway and damaged the carpet. Who is responsible for the cost of repair to the common area carpet?
The hot water system burst in our unit. Some of the water got out into the common area hallway. Who is responsible for the cost of repair to the common area carpet?
Our insurance company says we are only covered by landlord contents and therefore this should be covered by strata insurance. The strata company says that as it was a direct result of our hot water service, we are responsible for the cost of repair to the common area carpet.
My concern is, what if my unit burnt to the ground and caused hundreds of thousands of dollars worth of damage to the common area, who pays for that?
The owner of the hot water system can be liable for the damage to common property.
There are two questions that need to be answered here. Who is responsible? How does insurance respond?
The question of legal responsibility is best answered by a legal practitioner – however, it is my understanding the owner of the hot water system can be liable for the damage to common property.
In relation to insurance, the first option available to the lot owner is to lodge a claim under the legal liability section of your landlords insurance policy. While a landlords policy is intended to cover landlords contents only, there is also a section in the policy for legal/public liability which is designed to cover damage to other persons property that you are legally liable for. I would recommend asking your insurer to specifically provide a response to your claim considering a legal/public liability claim.
Alternatively, a claim can be made under the strata insurance for damage to the common area carpet. The owner of the hot water system may however be responsible for the excess.
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 and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
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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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