Question: The owner in the next bay damaged my car in a common property car park. They never told me they’d caused the damage but told someone else. I paid to fix the car. Can I request that strata reimburse me for the cost of repairing the damage to the car?
Answer: The strata corporation’s responsibility typically revolves around maintaining common property and ensuring safety, not resolving disputes between individual owners or tenants.
Generally, a strata corporation is only held responsible for damage if found negligent or otherwise legally responsible (for example in legislation). In this situation, there doesn’t seem to be any indication that the strata corporation was negligent or played a role in causing the damage to the vehicle. Therefore, they likely wouldn’t be responsible for reimbursing the repair costs.
This issue appears to be between the two vehicle owners. Since the other owner has admitted to someone else that they caused the damage, the best course of action would be to make a claim against the responsible driver. Consider contacting them directly to discuss reimbursement or, if necessary, seek legal advice on how to proceed with recovering your costs. Additionally, if you have comprehensive car insurance, you might also consider contacting your insurer to see if they can assist with the claim process.
Remember, the strata corporation’s responsibility typically revolves around maintaining common property and ensuring safety, not resolving disputes between individual owners or tenants.
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.
This post appears in the October 2024 edition of The WA Strata Magazine.
My unit is within a relatively large single tier strata complex. Because of the claims history, the Strata Insurance Policy carries a claims deductible of $10,000 for water damage claims (including storm damage). This is an exceedingly high deductible for a unit owner to face if he/she has to bear it due to the circumstances of the claim. I inquire whether, for an individual unit owner, insurance of the claims deductible on a Strata Insurance policy is available in the insurance market?
Hi John,
Unfortunately there is no excess buydown options in the strata space for claims such as this.
In this instance the best thing you can do is proactive maintenance of your property to prevent insurance claims this would include roof maintenance, checking flexi hoses for signs of wear maintaining shower recesses addressing any specific issues impacting water damage.
This should be encouraged across the entire complex to reduce claims history and put the owners in a better negotiating position to reduce the excess.
I have water damage due to a leak in my roof. Do I need to get approval from the other owners to lodge an insurance claim to get the ceiling fixed?
Hi
This recent Q&A should assist:
Question: My apartment has an internal courtyard directly above. There is a leak in my ceiling. Would strata insurance cover this?
Is the in ceiling electric wiring covered by strata insurance
Thank you for this fabulous website…I am learning so much and it is helping me assert my rights.
1. I am on the Council of Owners and have been for some time. Our Strata Insurance for our 13 lot, single tier, old Section 3AB strata plan, used to have a $200 excess. Our Strata Manager appears to have changed the excess to $500 without reference to any lot owner or the Council and is advising us to pay for any repairs less than the excess ourselves.
Question: Is this usual or ethical or in accordance with industry standards?
2. There is no resolution of owners or Bylaw stating the excess on an insurance claim has to be paid by a lot owner. However, we have been advised by the SM on two separate occasions that:
– if the cost of repair is less than $500 excess for glass window repair then we have to bear the cost of repair
This advice caused us to pay for $260 replacement of very large sash window glass and not put in a claim
– if the cost of repair of damage to our fence by visitor’s car (on adjacent common property carpark) is less than $500, we have to pay half.
Your information suggests that the Strata Company pays the excess as it arranged the strata insurance policy.
Question:
a. How do I prosecute this argument with an obstructive SM who does not budge until something official is quoted to him (like the law, a regulation, a practice standard).
b. If the cost of repair is less than the excess of $500, should I still make a formal insurance claim so that the Strata Company pays for the repair?
Before I found out about the application of the Dividing Fences Act, the SM used to advise us that we bore the costs of anything to do with our boundary and internal fences ourselves, whether or not they bordered common property.
We had a fence blow down in a recent storm, in a Strata titled unit. This fence is between the unit and strata common property eg. a park to be used by all in the complex, however, Strata management is demanding that we pay 50% of the cost of the repair and our own insurance should cover this. We are under the understanding that fences are listed under buildings in domestic Strata title policies and should be fully covered for this damage.
Could you please advise us on the legality of this as we are also of the understanding that if the Strata Committee has a policy in place we are unable to take out our own insurance in this complex as it will be insured twice!
Hi Cheryl
First check the strata plan – is the fence dividing common property and Pt Lot, or is actually all common?
Generally, an internal dividing fence will be covered by the strata company insurance as both parties are covered by the same policy. However, give the insurance broker a call and ask – it may be that there has been a number of fences damaged in recent storms and the insurer has declined to cover any more claims. If this is the case then you will be liable for 50% of the cost as the insurer isn’t involved.
You are able to enter a separate insurance policy yourselves, and yes, it would be insured twice – you should not need to do that. One of the questions on a claim form will ask if there is other insurance and the answer is yes. If you make a claim on your policy and declare the strata policy, practically what happens is that the two insurers negotiate with each other about which pays how much.
You might also ask the strata manager for a copy of the Certificate of Currency to check what is covered under the strata policy so you don’t double up.
Remember, most strata managers are not insurance experts and rely on the broker to provide advice to the client. If there’s difficulty, be courteous and speak with the broker direct. Most brokers will readily assist (that’s their business)!
Hi Cheryl
Leonie Milonas, Lync Insure has responded to your question above.
WHO Pays excess for accidental fire damage in a unit? We have no by-law indicating it is owners responsibility. Excess for all insurance claims in the past was paid by Strata
In Western Australia, do the regulations and rules on dividing fences say that the boundary fence must sit on the boundary line? If the boundary fence sit a few centimetres away from the boundary line and is totally on one property, does it become the sole ownership of the owner with the fence on that property? Is this still a boundary fence or considered an internal fence?
What is the leeway/guidelines since most fences do not sit right on the boundary lines?
Does the boundary fence come under exclusive use of the owner of the strata lot, and is there is any damage, the owner should bear the excess?
Hi Danny
Thanks for your questions. We have received the following reply from Leonie Milonas, Lync Insure:
To answer this question you would need to refer to your local town planning office of your local council. In terms of how insurance would respond with a claim, it is a specific question that would need to be answered by your insurer with respect to a claim. Different insurers may apply different underwriting rules regarding this situation.
What is the leeway/guidelines since most fences do not sit right on the boundary lines?
As mentioned above, the same applies to this question. Refer to your local council or obtain legal advice, as other matters beside insurance may arise such as maintenance issues.
Does the boundary fence come under exclusive use of the owner of the strata lot, and is there is any damage, the owner should bear the excess?
A boundary fence as mentioned above, regardless of whether it is exclusive use or not forms part of the building structure that is covered under most insurance policies, (whether 50% or 100% claimable [refer above] for the damaged sheets only and less the excess). Whilst a strata matter, generally who pays the excess depends on the by-laws in place, which will usually define the responsibilities of the proprietor who is granted exclusive use. Otherwise, given the strata company arranges the terms of and owns the policy, the strata company pays the excess.
General Disclaimer
This is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor.
It will also be important to check the strata plan, as in some older schemes all fences (even dividing) are a strata responsibility… in that case it would be half the neighbour’s cost and half your strata company’s cost. A further aspect to this is that the insurer for the neighbour may also contribute towards the cost.
Good luck!
Thanks for the comment eM. We’ve received the following reply from Leonie Milonas, Lync Insure:
Agreed! With older strata plans, yards may still be common property and this is a very good point.
You must always check the strata plan for your boundary definitions. Strata insurance will include all internal fence cover, less the excess for accidental damage for the damaged sheets only, between units and common property within the strata plan. A boundary fence shared with a neighbour (who does not belong to the strata) that is accidentally damaged is usually 50% for the damaged sheets only, less the excess. A boundary fence where a fence neighbour is crown land or roadside verge, a laneway, the strata insurance would usually cover the fence for the damaged sheets only less the excess.
General Disclaimer
This is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor.