Question: Our ceiling was damaged by a burst pipe above. The repairs are less than the insurance excess. Are we responsible for our repairs and can we claim the expenses from the above unit?
Our ceiling was water damaged from a burst water pipe exclusively servicing a unit above. The owner of the tenanted unit above denied responsibility for repairing the damage to my ceiling once it was established that the combined insurance assessment costs did not exceed the strata insurance excess of $15K.
The landlord advised my only course of action is to independently take the strata company to SAT because the water damage is an insurable event. This appears contrary to their earlier action of lodging a strata insurance claim for damages to both units under a one-event scenario.
What options do I have? I’d prefer to take the owner of the above unit to SAT, as they negligently contributed to damage that escalated due to their delay in arranging a plumber.
Answer: Where a claim falls below the excess, the lot owner is responsible for repairing the damage to their property.
In instances where a claim falls below the excess, the lot owner is responsible for repairing the damage to their property, however, if they believe another party is legally responsible for the damage, they can take action to hold them responsible.
If you believe you have grounds to hold the owner of the unit above responsible the first step in the process is to issue a letter of demand to that lot owner outlining:
- A description of the event including the date.
- Why you believe the owner is liable and include any evidence to support this.
- The amount you are seeking compensation for (include your quotes/invoices).
- How you can be reimbursed (bank account).
If the owner of the unit above has contents or landlord insurance, they can refer the demand letter to their insurer to claim under the public liability (also known as legal liability) section of their policy. This section is designed to cover claims for damage to other’s property you become legally liable for.
When you issue the letter, it is good practice to include a recommendation that the owner refers this to their contents or landlord insurer.
If you are not satisfied with the response of the owner (or their insurer), you can follow the guide provided by Landgate in resolving disputes which may include referring the issue to the State Administrative Tribunal (SAT).
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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