These questions about whether mould is covered by insurance in a strata property have been answered by Leonie Milonas, PSC Property Lync Insurance Brokers.
Question: After Cyclone Veronica, units in our complex now have mould. Is mould covered by insurance or would this be a lot owner problem?
We have an investment property in Port Hedland. The unit is in a Strata complex of 23 units.
After the recent cyclone Veronica, 4 of the units have suffered Mould issues on the walls from top to bottom. Is mould covered by insurance or would this be lot owner responsibility? How do we find out the cause of the mould problem to let the insurance company know?
Even though our unit is not directly affected, our property manager has suggested we keep our air conditioner running at our cost to prevent mould from forming in our unit.
Answer: Depending on the strata insurance company involved, mould may not even be covered.
Depending on the strata insurer PDS mould may be covered or not. I would suggest the Lot Owners ask their current insurer.
Mould is a difficult issue and you should refer to a builder and your insurer to assess e.g. poor ventilation; the property sustained rainwater damage from a cyclone.
This post appears in Strata News #247.
- WA: Maintenance Planning and Insurance: The Strata Titles Amendment Act 2018 (STAA 2018)
- Mould and dampness
The responses to the above questions are prepared for informational purposes only, and is not legal advice and should not be relied on as legal or insurance advice. You should consult with a qualified insurance or legal advisor.
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