What can an OC do if a lot owner repeatedly causes water damage to another lot?

There is no obligation for a strata corporation or a lot owner to make a claim on the strata insurance policy for damage caused by another lot owner's actions. In fact, in cases where the issue is recurring or the claim value is relatively low, it may be more appropriate to pursue recovery directly from the responsible party to avoid potential impacts on the strata insurance premium or excess levels.

In this situation, where water damage has occurred to a ceiling due to a lot owner repeatedly allowing their bath to overflow, the alternate course of action is for the owner of the damaged ceiling (typically the lot owner below) to seek compensation directly from the responsible lot owner, instead of making an insurance claim.

The affected lot owner should write to the lot owner above, clearly setting out:

• The nature of the incident(s) – including dates and how the overflow is believed to have occurred.
• The extent of the damage – such as staining, plaster deterioration, or mould.
• The cost to repair – supported by invoices or quotes from contractors.
• Any other supporting evidence – including photos, witness accounts, or reports from plumbers or building professionals.
• A clear request for reimbursement of the repair costs.

This correspondence should also request a response by a specified date and make clear that, if no compensation is provided, the matter can be escalated to the NSW Civil and Administrative Tribunal (after a mediation process has occurred).

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. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.