Question: In our strata complex, a lot owner’s visitor caused damage to common property by reversing their car into the gate. The cost to repair the damage is less than the insurance excess. As it was their visitor, is the lot owner responsible for the damage?
Answer: Initiate a recovery action against the driver.
In instances where an at fault party (driver) has caused damage to property below the insurance excess, we recommend the strata corporation initiate a recovery action against the driver.
The best way to do this is firstly via a letter of demand which outlines:
- Opening statement that you are making a demand (i.e. We would like to submit a letter of demand in relation to a recent incident. If you have insurance the we recommend this letter is sent to your insurer to lodge a claim under the public liability section of your insurance policy.)
- Circumstances of the event (include date & description of damage);
- Why you believe the driver is responsible;
- Summary of costs and a request for reimbursement (include invoices or quotes for repairs with your demand);
- Bank details for reimbursement.
Should you not receive a favourable response to the demand letter, you may then apply to the applicable small claims tribunal in your state and they can order the driver to make payment.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129
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.