This article discusses termite damage to common property in a strata scheme, explaining who is responsible for repair costs and whether an insurance excess applies.
Question: We recently found inactive termite damage in a common property external wall. We provided an invoice for our costs, but the owners corporation says we need to pay any insurance excess. Is this correct?
We recently found inactive termite damage in an external wall. A committee member advised us to contact the owners corporation and keep invoices for the urgent work.
- The owners corporation denied the external wall was common property despite owners corporation members checking plans and clearly saying it was. Eventually, they agreed.
- We provided an itemised invoice for our costs to the owners corporation. They say we need to pay any insurance excess.
Is termite damage in the external common property walls covered by the owners corporation? If so, should the owners corporation also be responsible for the excess?
Answer: For events that are not claimable, the property owner is responsible for the costs associated with the maintenance of that property.
Termite damage is an exclusion that applies to all strata policies that I am aware of. The excess would only ever be payable in a claim where the event was not excluded.
For events that are not claimable, the property owner is responsible for the costs associated with maintenance of that property.
In the case of an external wall, it is generally common property (unless the plans of the building provide otherwise) and, therefore, would be the owners corporation’s responsibility to maintain.
If the event were considered a claim, then the owners corporation would be liable for the excess if it was deemed common property.
This post appears in the June 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.