Question: My apartment has an internal courtyard directly above. There is a leak in my ceiling. Would strata insurance cover this?
I own an apartment in a complex of seven in Perth, WA. The apartment directly above me has an internal courtyard. According to our strata manager, the courtyard is not common property and, therefore, not covered under the strata insurance. The courtyard adjoins my apartment’s roof and appears to be the cause of a leak in my ceiling. Does this means my ceiling is not insured ?
Answer: First, ensure the leak is fixed and then ask the owner or strata corporation to conduct repairs.
In water damage claims, there are things that are and are not covered.
Generally speaking, insurers cover the cost to repair water damage to insured property but generally exclude repair costs related to finding and fixing the leak. It can be considered the owners/strata corporation responsibility to maintain their property, and such repairs relate to general maintenance or wear and tear. The insurer has exclusions such as lack of maintenance, rust, oxidation, wear and tear, corrosion, gradual deterioration, developing flaws, building defects, rectification of faulty workmanship etc. However, the consequential water damage (to insurable property) can be considered by the insurer.
Without knowing the specifics of this incident, I assume the strata manager means fixing the courtyard is not part of the strata insurance. As you have noted, it is an internal courtyard. In this instance, the lot owner is most likely responsible for maintaining their courtyard and carrying out the repairs to stop water ingress into your ceiling.
The damage to your ceiling should be covered by the strata insurance once the repairs to the courtyard above are complete, subject to the policy excess and policy conditions. The insurer will usually not cover the cost of repairs to your ceiling until the source of the water ingress has been rectified.
My suggestion is first to ensure the leak is fixed and then ask the owner or strata corporation (depending on whether it is considered owner or common property repairs) to conduct repairs.
If you have difficulty getting the owners/strata corporation to rectify the leak, you can refer to the Landgate guide to resolving disputes: Resolving disputes – Five step approach to resolving a dispute
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.
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