Question: My hot water system ruptured and caused damage to the kitchen cupboards. My landlord insurance says to contact the body corporate. My body corporate says it is a landlord insurance issue. Can you help?
I have an apartment in a Queensland body corporate. My hot water system, located in the kitchen cupboard, ruptured and leaked. I have landlord insurance, but the insurer says they are not responsible because the kitchen cupboards are part of the building, and they are not responsible for covering building issues. They suggested I refer the matter to the body corporate.
The body corporate says their insurance does not cover “kitchen, bathroom and bedroom cupboards”. I feel stuck. Can you help?
Answer: Various regulations apply to body corporates depending on which regulation module your scheme is registered under.
The definition of a building under a strata policy is generally worded along the lines of: Building means buildings as defined in the strata legislation applying where your building is situated. Permanent fixtures such as built in cabinetry are considered part of the building and only insurable under a strata policy.
A strata insurance policy can’t provide coverage for a building that does not meet the requirements of the applicable legislation. In Queensland, there are various regulations that apply to body corporates, depending on which regulation module your scheme is registered under. However, the intentions are all the same. I have referenced the Body Corporate and Community Management (Standard Module) Regulation 2020 as an example.
Part 6 Insurance – Act Section 1898 (195)
Part 6 Insurance – Act Section 1898 (195) defines a building as:
building includes improvements and fixtures forming part of the building, but does not include—
- temporary wall, floor and ceiling coverings; or
- fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
- mobile or fixed air-conditioning units servicing a particular lot; or
- curtains, blinds or other internal window coverings; or
- carpet; or
- mobile dishwashers, clothes dryers or other electrical or gas appliances not wired or plumbed in.
The above list of excluded items does not include built in cabinetry. Therefore, the act requires it to be insured as part of the building under the strata
insurance.Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
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.
This post appears in the December 2024 edition of The QLD Strata Magazine.