Question: Non-compliant installation of a sewer vent flashing on the roof caused water damage to my lot. If covered by strata insurance, what could stop the insurer from paying the claim?
Water ingress and internal damage to my lot was traced back to a “non-compliant installation of a sewer vent flashing” on the roof. Is the water damage to my property covered by the body corporate insurance policy? If so, is the insurer required to make sure the problem was fixed before paying the claim?
Answer: If the insurer believes the water damage resulted from a defect known to the body corporate or previously identified but not rectified, this could result in a denial of the claim.
Unfortunately, it is not possible to provide a definitive assessment of whether the body corporate’s insurance policy covers the damage without a full understanding of all the facts and circumstances surrounding the incident.
Generally speaking, the insuring clause of a strata insurance policy provides cover for sudden and accidental damage, and water ingress may fall within this definition—particularly where the event is recent and unexpected. However, the length of time over which the water ingress has occurred can be a factor.
It’s also important to be aware that strata insurance policies usually contain specific exclusions that may apply in situations involving building defects. These can include:
- Damage caused by non-rectification of a known defect, error or omission in the insured property; and
- Damage arising from an inherent or latent defect that the body corporate was aware of or reasonably should have been aware of.
If the insurer believes the water damage resulted from a defect known to the body corporate or previously identified but not rectified, this could result in a denial of the claim.
In this instance, I would recommend either lodging a claim so the insurer can carry out their assessment or, alternatively, engaging a qualified repairer to rectify the leak and provide a detailed report outlining the cause, repair works undertaken, associated costs, and photographs of the damage.
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.