Emergency repair: What is and isn’t covered by strata insurance?
Question Summary:
My shower and bathtub suffered a burst pipe in the middle of the night, which severely damaged my kitchen ceiling and bedroom flooring. The leak penetrated through different walls damaging part of the kitchen ceiling leaving stain marks on kitchen walls as well as the ceiling.
I contacted my strata insurer after I got a plumber to fix the burst pipe for me. I was told that they might not cover the repairs as I should have contacted them to notify them of the damages rather than dealing with it privately. I explained that the leak was sudden and that it happened during the night. I was scared and it was an emergency. I even sent them all the photos of the damage to show them the extent of the matter.
They requested the plumbing bill so they can assess it. I asked if they could send someone to check the flooring in the bedroom and provided photo evidence, but they said that the flooring is my problem to fix. I don’t understand as this is not a renovation. It’s a burst pipe and damaged walls and ceiling, isn’t this covered by strata insurance?
Answers from Strata Insurance Solutions:
Policies require you to take all reasonable steps to reduce and prevent loss or damage. If you have done an immediate make safe to prevent further damage, regardless of the time of day, you have done the right thing.
Even if you repair the damage, insurers are not able to deny the claim for this action alone. But if any of the items repaired are not covered by insurance, then you bear the cost.
Water damage claims are our most contested claims with insurers because there is often a component of maintenance and repair of water damage involved. Insurers cover the cost to repair water damage to insured property but generally exclude repair costs related to finding and fixing the leak, as this is considered the owners’ or body corporate’s responsibility to maintain their property.
Costs related to finding and fixing the leak relate to general maintenance or wear and tear. The insurer has exclusions to cover these issues including lack of maintenance, oxidation, rust, corrosion, gradual deterioration, developing flaws, building defects, rectification of faulty workmanship, and more. Generally, leaks are only covered if the leak is caused from “sudden and accidental damage” such as impact damage or storm damage. However, the consequential water damage (to insurable property) should be covered as water damage.
In relation to the flooring, if the flooring is temporary flooring such as carpets or a floating floor (laminated, veneered or similar type of flooring not fastened to the sub-floor but held in position by its own weight with or without skirting at perimeter walls), then it is not covered by strata insurance and instead needs to be covered by property owner or contents insurance.
Our recommendation is to ask that the insurer deals with this claim and that you deal directly with them on it.
To read more:
Tyrone Shandiman
Strata Insurance Solutions
LINK, Level 1, 57 Berwick St,
Fortitude Valley QLD 4006
Ph: 1300 554 165
E: tshandiman@iaa.net.au
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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
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