Water damage of a unit has been caused by a faulty appliance in a unit above. Who is responsible for the cost of the repairs or replacement to the damaged property and its contents?
Water damage of a unit has been caused by a leak originating in an above unit due to a faulty appliance eg dishwasher hose and not common property like a service pipe. As the water travelled through common property, is the cost of the repairs or replacement to the damaged property and its contents the responsibility of the owners corporation (and its insurer) or the lot owner (insurer) of the above unit?
The most obvious respondent is the lot owner with the faulty appliance as that is where the leak originated.
The strata insurance policy will cover water damage to building (insured property) associated with a water leak (subject to the policy terms & conditions) and this cover will be provided whether a lot owner is legally responsible for the damage or not.
The question of who is liable for damage not covered by insurance, resulting from a leak is a legal question that is best answered by a legal practitioner or strata manager.
In this instance, the most obvious respondent would be the lot owner with the dishwasher as that is where the leak originated and they are responsible for maintaining their property.
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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