Do shutoff valves reduce your levy liability for an insurance excess?

If the water damage comes from a burst common-property pipe, the owners corporation (OC) is responsible for repairs under section 106 of the Strata Schemes Management Act 2015. The insurance excess forms part of the OC’s repair costs, and the OC can raise levies to cover those expenses.

Installing your own shut-off valve is a great preventative measure, but it does NOT change the OC’s statutory responsibility for common property or the way contributions are shared. Unless a registered by-law allows the OC to recover excess from a specific owner, or the owner caused the damage, the excess remains a shared cost paid by all owners according to unit entitlement.

You may vote against the special levy, but if it is validly passed, all lots (including yours) must contribute.

Recommendations:

Here are constructive steps that may help:

• If your building is prone to bursts, you may propose adding shut-off valves or pressure-limiting devices as a building-wide preventative measure.
• Ask for a review of insurance policy settings.
• Review the capital works fund plan
• If repeated bursts occur, the issue may relate to ageing plumbing, which should be reflected in future planning rather than relying on repeated special levies.