Question: A plumber cut a hole in our ceiling during repairs to a leak in the upstairs apartment. If the leak was from their apartment, who is responsible for repairs to my ceiling?
The Owner of the apartment above us has fixed a leak that was caused by their internal washbasin drain pipe leaking. The plumber came and created a hole in our ceiling during the repair.
Our bathroom ceiling now has cracks, the light fitting is coming off, we have rot & mould and the hole has not been repaired. I am quite concerned that the ceiling may fall. Who should be responsible for fixing the damage caused by the leak?
In this instance, what legislation is applicable to apartment repairs? Is the owner of the apartment upstairs responsible for fixing our ceiling? They have been asking us to bear some of the cost and I am not sure where I stand.
Answer: If an insurance claim can be considered for the water damage component of this claim, this may help resolve some of the expenses without either lot owner needing to cover those costs.
The first consideration is whether an insurance claim can be considered for the water damage component of this claim. If so, this may help resolve some of the expenses without either lot owner needing to cover those costs. The precedent case Paisley v Owners Corporation PS52240 suggests the owner of the property where the leak originated (“the lot above”) may be liable for the excess.
For items not covered by insurance, the question of legal responsibility best fits a legal or strata management professional. Section 129 of the Owners Corporation Act outlines a lot owners maintenance obligations and this issue may be considered a breach of that section of the Act.
If the owner of the lot above has contents insurance, the lot owner with the damage may submit a letter of demand to the owner of the lot above and they can then refer this to their contents insurer for consideration of a claim under the public/legal liability section of the contents insurance policy. The contents insurer will consider if their lot owner is responsible for damage and if so make a payment to the damaged lot owner under that section of the policy.
This post appears in Strata News #546.
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.
