Who pays to replace stolen letterboxes after accidental damage to common property?
Our complex is made up of four single one bedroom units. A delivery truck reversed into the front wooden fence, knocking down our letterboxes. We contacted the delivery company about the damage. Later that day, someone stole the four strata letterboxes while they were lying on the ground.
Who is responsible for the cost of replacing the letterboxes? Should each owner pay individually, or is this a common property expense given the letterboxes were damaged and left vulnerable due to the initial incident?
You could argue that the loss of the letterboxes arose as a consequence of the initial incident, given that the impact created the opportunity for their removal.
Based on the information provided, the letterboxes were dislodged and left unsecured as a result of the delivery truck impacting the front fence. While the subsequent theft occurred later the same day, you could argue that the loss of the letterboxes arose as a consequence of the initial incident, given that the impact created the opportunity for their removal.
Without making any determination as to liability (which is ultimately a legal matter), it is reasonable for the owners corporation to include the replacement cost of the letterboxes together with the fence damage in its demand to the delivery company or their insurer, outlining the sequence of events and timing.
If recovery from the delivery company is unsuccessful or delayed, the alternative option would be to lodge a claim under the strata insurance policy for the damaged common property (including the letterboxes, if insured), with the insurer then able to pursue recovery from the delivery company via subrogation.
Separately from any insurance claim or recovery action against the delivery company, responsibility for the letterboxes will depend on whether they are common property. If the letterboxes are located on common property, they would generally be the owners corporation’s responsibility to maintain. Conversely, where a letterbox is located wholly within an individual lot boundary, it is typically regarded as lot owner property and the responsibility of that owner to maintain.
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.
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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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