This article discusses rat damage to a car in a strata car park, explaining who is responsible for repair costs and when car insurance or owners corporation liability may apply.
Question: Who is responsible for the repair costs when a car parked in an owner’s parking space sustains cable damage caused by rats?
Answer: Car owners cannot rely on strata insurance to cover vehicle damage.
Damage to motor vehicles is typically not covered under strata insurance policies. Strata insurance primarily focuses on insuring the building structure and common areas rather than individual vehicles. Therefore, car owners cannot rely on strata insurance to cover damage to their vehicles.
For this reason, the policy that should respond to damage to vehicles is car insurance. The insurer will assess the claims in accordance with their terms and conditions. If the insurer determines the owners corporation is liable, they have the ability to pursue a recovery against the insurer.
Strata insurance can respond under the public liability section when the owners corporation is legally liable for the damage.
Determining liability in these cases is not always straightforward. When a demand is made to the owners corporation, it may be referred to the insurer for a legal liability claim assessment. The assessment is typically conducted on a case-by-case basis and can involve solicitors and, in some instances, judges if the claim escalates to court.
An example where the owners corporation could be found to be liable is in the instance of a know rat infestation where the owners corporation should have reasonably known about it but failed to take appropriate measures. They may be held liable for the resulting damage to vehicles.
When faced with rat damage to a vehicle in an owners’ car park, it is crucial to understand that strata insurance does not cover such damages. Car owners should initiate a claim with their motor insurer, who will then assess the liability of the owners corporation. While owners corporations have a duty of care to vehicle owners, that duty of care is not unlimited and will unlikely extend to things beyond their control. Ultimately, each claim is evaluated on its own merits, considering the specific circumstances and available evidence.
This post appears in the August 2023 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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