Question: My balcony floor has a downward bow at its centre line, causing water pooling. Total reconstruction is recommended. As this is a structure issue, would the cost of repair be covered by strata insurance?
Answer: A structural engineer or a certified building inspector can determine if the cause of the bowing constitutes “sudden and accidental damage”.
When a balcony floor begins to show signs of bowing, leading to water pooling, an owners corporation may look to their strata insurance for cover. However, understanding what a strata insurance policy covers is crucial for setting realistic expectations about the claim’s success.
Strata insurance policies are designed to cover “sudden and accidental damage.” This means that for a claim to be successful, the damage must not have occurred over time and must have resulted from a specific, unforeseen event. In the case of a balcony floor bowing, this condition often develops gradually, suggesting that it might not meet the “sudden” damage criteria. However, if there is an identifiable cause, such as water damage or inundation, the policy may provide cover, though this will be determined on a case-by-case basis.
It’s also essential to understand the common exclusions in strata insurance policies, such as:
- Rectification of Faulty Workmanship: The policy may not provide coverage if the bowing is due to poor construction practices.
- Normal Settling, Creeping, and Heaving: These are natural processes that buildings undergo, and insurance typically does not cover them.
Before proceeding with a claim, we advise you to consult a structural engineer or a certified building inspector. These professionals can assess the cause of the bowing and determine if it constitutes “sudden and accidental damage” and whether the event is excluded. Their evaluation will be crucial in supporting your insurance claim.
If the professional assessment supports your claim, gather all necessary documentation, including the expert’s report, to submit to your insurer. Be prepared to provide detailed information about the damage and its impact.
Regular maintenance and inspections often prevent issues like bowing from developing or worsening. Implementing a routine check-up can save significant hassle and expense down the line.
While the prospects for a successful strata insurance claim for a bowed balcony floor might seem challenging, understanding the policy’s scope and consulting with experts can guide you through the process. Property owners can navigate these complex issues more effectively by taking proactive steps and seeking professional advice.
This post appears in Strata News #708.
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.