Question: I own a lot in VIC. The waterproofing of my balcony isn’t covered by strata insurance. It is the lot owner’s responsibility to maintain and repair? Is there an insurance product available that insures me for damage to the waterproofing on my balcony?
Answer: Costs associated with maintenance of a property are part of the risk of owning a property.
The general principle for insurance is that maintenance costs are costs for the property owner – similar to tyres and radiators failing in a car.
All policies will have exclusions associated with wear and tear, gradual deterioration, developing flaws, building defects, rectification of faulty workmanship etc.
While the maintenance cost can be high for membrane repairs, I am not aware of a product or policy on the market that provides maintenance cover (just like I am not aware of any policy that provides cover to fix a burnt out car radiator).
In this instance, costs associated with maintenance of a property are part of the risk of owning a property.
This post appears in the July 2022 edition of The VIC 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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