Question: Can an owner make a claim directly to the body corporate insurer without the body corporate inspect the damage and determine responsibility?
Can an owner make a claim directly to the body corporate insurer without the body corporate having inspected the damage?
An owner has spoken with the insurance company and is getting quotes for damage to tiles and ceiling due to water ingress. However, the committee has not had the opportunity to inspect the damage and determine responsibility.
The proposed damage is from water damage more than ten years ago and is being raised now with a current insurance claim the committee has with the insurance company due to a recent rain event. In total. three units are impacted by the current claim including the owner mentioned above.
Answer: If the committee have concerns about the damage being claimed, they can make representations to the insurer about their concerns.
Some insurers will allow owners to lodge claims on strata policies as lot owners have an insurable interest in the policy, which affords them the opportunity to make a claim.
Notwithstanding, if the committee have concerns about the damage being claimed, they can make representations to the insurer about their concerns and asking that an assessor is appointed to the claim to assess the damage claimed.
It is unusual for a committee to inspect a unit. Usually, the owner provides evidence of damage or insurers will appoint an assessor to do the inspection.
In cases where three units are damaged, the damage should all be submitted to the one claim so the body corporate should ask that the other units are added to the claim so that one excess applies.
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.