Question: When repairing waterproofing failures in an older building, must works comply with current building codes? How does this affect strata insurance expectations?
Our building was constructed in 1992 and is assumed to have been built to the code of the time. Over the years, there have been multiple instances of waterproofing failures, including those involving flashing around roof penetrations. Would a strata insurance company expect repairs to fix the waterproofing or to bring the property up to current code?
Answer: Insurers expect the body corporate to seek professional advice on how to resolve issues and to implement those measures.
There are a number of considerations that insurers take into account when looking at building defects or maintenance issues. While your building may have been constructed to the building code applicable at the time (1992), this does not mean issues cannot arise subsequently that increase the risk profile of the building. Insurers generally expect that where problems develop, such as water ingress or flashing failures, the body corporate will take appropriate action to rectify them.
Depending on the severity of the leaks, insurers may require a report from a suitably qualified building professional, such as an engineer, outlining the cause of the problem and recommendations for repair. If such a report is obtained, the insurer will normally expect the body corporate to act on those recommendations in a timely manner.
As a general principle, if new leaks or defects emerge, insurers expect the body corporate to seek professional advice on how to resolve them and to implement those measures. Provided the body corporate follows the recommendations of the appointed professional, insurers will not usually require works to bring the building up to current codes, unless that is specifically what the professional has recommended.
This post appears in Strata News #762.
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.
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