WA: I accidentally damaged my cooktop — does strata insurance cover it and who is responsible for the excess?

Question: I accidentally damaged the cooktop in my unit. Does strata insurance cover this? If so, why are they refusing to allow me to make a claim?

I’m an owner occupier in a strata apartment in WA. I accidentally broke my cooktop. When I contacted my contents insurance holder, they mentioned I may be able to claim the repair on the strata insurance. When I contacted my strata manager, they said strata insurance didn’t cover this, then backtracked to say the cooktop was common property. They also informed me it would cost $ 5,000 in excess to make a claim, and as it was accidental damage, the cooktop was my responsibility to repair. They’ve threatened me with a breach if I make a claim.

When I asked for a breakdown of what else inside my lot would be considered common property, the strata manager said they were not an insurance agent and would provide any further information.

What happens with internal fixtures like the cooktop when strata won’t help me and the contents insurance won’t either?

Answer: The strata corporation is not obligated to cover costs for insurable damage below the excess of lot owner property.

It is important to first address a common misunderstanding regarding two crucial considerations within strata:

1. Common Property Ownership: This refers to property that falls under the ownership and responsibility of the strata corporation.
2. Insured Property: Strata insurance does not just cover common property. The strata corporation is responsible for insuring certain items within the strata building, including lot owners’ property.

In terms of what the strata corporation must insure, the basic principle is that if you pick the unit up and shake it, anything that falls out is lot owners’ contents plus temporary flooring such as carpet, blinds and curtains, and appliances that are not permanently attached. These items need to be insured by contents/landlords insurance. Other permanent fixtures, including but not limited to kitchen and bathroom cabinetry, are covered by strata insurance subject to the policy terms, conditions and exclusions.

Although the lot owner is responsible for maintaining the cooktop, it is not categorised as common property. It’s considered a permanent fixture. Consequently, the strata corporation is obligated to include it in the strata insurance policy. If the cooktop is permanently affixed to the kitchen cabinets, it’s considered a part of the building and thus covered by the strata insurance, subject to the policy excess.

In the case where the cost of repairs is below the policy excess, the responsibility for repair lies with the party accountable for property maintenance, which, in this case, is the lot owner. The strata corporation is not obligated to cover costs for insurable damage below the excess that pertains to lot owner property.

We cannot comment on the by-laws mentioned where the owner’s corporation has threatened to breach the owner if they lodge a claim for accidental damage.

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.