Question: If a lot owner does not maintain known issues in their lot and this causes damage to common property, are they liable?
A lot owner in our building (BFP) is aware they have water traps on their lot. They have leaky covers on rooftop access doors, plus a leaky and poorly constructed pergola on their exclusive use rooftop terrace. These items are not maintained or repaired so that they work properly to prevent water damage. The resultant water damage becomes the cost of all owners to fix. Can the owner be pursued for the cost of the resultant repairs?
Answer: Not only can lot owners face an uninsured loss for damage to their own property, they can also be held liable for damage to other’s property as well.
Lot owners have a responsibility to maintain their lot in good condition. That is a requirement under applicable regulations, for example, section 211(3) of_ Body Corporate and Community Management (Standard Module) Regulation_.
From an insurance perspective, failure to maintain a property can also have an adverse impact on insurability.
Insurers will include exclusions such as Damage caused by non-rectification of an Insured Property defect, error or omission that You were aware of, or should reasonably have been aware of – this will give the insurer the ability to deny a claim for damage resulting from the failure to address these known issues.
Not only can lot owners face an uninsured loss for damage to their own property, they can also be held liable for damage to other’s property as well.
This post appears in the March 2023 edition of The QLD Strata Magazine.
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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