Question: The supplied washing machine valve in our rented QLD unit failed and resulted in a leak that caused damage to the unit’s ceiling below. We are being pressured to pay for the repair? Who is responsible?
The supplied washing machine valve in our rented QLD unit failed and resulted in a leak that caused damage to the unit’s ceiling below. Our landlord insurance policy was denied. Two appeals were also denied. The strata manager advised building insurance excess for water damage is $5000. The quote to pay to repair water damaged ceiling is just under $2000. We are being pressured into paying it. Who is responsible to pay this?
Answer: Submit the demand for compensation to your landlords/contents insurer. Make sure you specifically ask them to lodge the claim under the legal/public liability section.
The owner of the washing machine may be found legally liable for damage to the ceiling of the lot below, whether that be the tenant or the lot owner.
If the owner has landlords insurance (or contents insurance for tenants), there will be a section under that policy for Legal/Public Liability. While the strata insurance policy may have a $5,000 excess, it is unlikely the landlords insurance will have the same excess applying.
In this case we would recommend submitting the demand for compensation to your landlords/contents insurer. Make sure you specifically ask them to lodge the claim under the legal/public liability section. In the question, they advise the claim was denied, this may be because the claim is under the property section when it should be under the liability section.
The insurer will then review the demand and determine whether they believe the owner of the washing machine is liable. If they believe they are, they will make a settlement to the lot owner with the damaged ceiling or alternatively, they will deny liability in circumstances where they do not believe the machine owner is liable.
If there is no landlords/contents insurance the owner/tenant will be responsible for dealing with the demand by the lot with the damaged ceiling.
I am happy to take further questions offline and assist with the claims process.
This post appears in Strata News #565.
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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