If a lot owner does not maintain known issues in their lot and this causes damage to common property, are they liable?
A lot owner in our building (BFP) is aware they have water traps on their lot. They have leaky covers on rooftop access doors, plus a leaky and poorly constructed pergola on their exclusive use rooftop terrace. These items are not maintained or repaired so that they work properly to prevent water damage. The resultant water damage becomes the cost of all owners to fix. Can the owner be pursued for the cost of the resultant repairs?
Not only can lot owners face an uninsured loss for damage to their own property, they can also be held liable for damage to other's property as well.
Lot owners have a responsibility to maintain their lot in good condition. That is a requirement under applicable regulations, for example, section 211(3) of_ Body Corporate and Community Management (Standard Module) Regulation_.
From an insurance perspective, failure to maintain a property can also have an adverse impact on insurability.
Insurers will include exclusions such as Damage caused by non-rectification of an Insured Property defect, error or omission that You were aware of, or should reasonably have been aware of – this will give the insurer the ability to deny a claim for damage resulting from the failure to address these known issues.
Not only can lot owners face an uninsured loss for damage to their own property, they can also be held liable for damage to other's property as well.
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.
Log in to your existing Lookupstrata Account to download the printable file.
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.
Lookupstrata Directory
Looking for QLD Strata Specialist in your area? Search within our LookUpStrata Directory for the best list of contacts available
Search the directory
Comments
Log in to leave a comment