Our committee suffered damage to common property due to faulty workmanship. Should the strata manager and committee instigate an insurance claim before recouping cost of repairs from lot owners?
Our Strata Manager and Committee approved a person unknown to the Owners Corporation to carry out a $90,000 Major Capital Works Job to replace 12 large Planter Boxes and a 300 sq meter courtyard. The contractor didn't construct the stormwater runoff correctly and in a recent storm a unit was flooded.
The Strata Manager and Strata Committee then appointed a plumbing company the $30,000 job to remediate the tradesman's mistake. They held an EGM stating all owners needed to contribute to the $30,000 invoice. There has been no mention of claiming the cost of the repair work against our strata insurance.
What were the options available to the Strata Manager and Committee? Are they required to pursue insurance claims before passing costs onto Owners?
In this instance an insurance claim would not be a viable option.
Strata insurance covers “sudden and accidental damage” and all policies I am aware of exclude costs associated with rectification of faulty workmanship.
In this instance an insurance claim would not be a viable option as the repair works are associated with rectifying faulty workmanship.
The committee may seek to obtain legal advice in relation to whether a claim may be made against the original contractor who installed the planter boxes.
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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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