QLD: Hot water system ruptured in kitchen cupboard — who covers the damage?

Question: The hot water system in my apartment’s kitchen cupboard ruptured, damaging the cupboards. Neither landlord insurance nor strata insurance says they cover the kitchen. What do I do now?

I have an apartment in a body corporate in Queensland. My hot water system is in my kitchen cupboard. It ruptured and leaked, damaging the cupboards. The landlord insurance company says they are not responsible for kitchen cupboards and this should be covered under my strata insurance. My strata says their insurance does not cover “kitchen, bathroom and bedroom cupboards”. What do I do now?

Answer: Permanent fixtures such as built in cabinetry are considered part of the building and only insurable under a strata policy.

The definition of building under a strata policy is generally worded along the lines of: Building means buildings as defined in the strata legislation that applies 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, various regulations 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 – Section 195 defines building as:

building includes improvements and fixtures forming part of the building, but does not include—

1. temporary wall, floor and ceiling coverings; or
2. fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
3. mobile or fixed air-conditioning units servicing a particular lot; or
4. curtains, blinds or other internal window coverings; or
5. carpet; or
6. 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 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.