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Water Damage in Strata Insurance
Water damage can lead to complex situations in strata properties, especially when the damage originates from another unit within the building. Strata Insurance Solutions aims to shed light on the intricacies of water damage claims, excess responsibility, and liability across Australian states.
Understanding Water Damage Claims in Strata Properties
In the context of a multi-story building, water damage claims can arise when a leak from an upper-level unit causes damage to the unit below. The question of who bears the excess in such cases varies from state to state based on legislative requirements.
Excess Responsibility in Queensland
Queensland stands out for its clear legislation concerning excess responsibility in strata insurance. According to Queensland law, if a claim affects two or more lots or involves common property, the body corporate is typically responsible for the excess. However, the body corporate can deem it reasonable for the owner of the unit responsible for the damage to bear the excess. For instance, if neglect from an upper-level unit resulted in the damage, the owner might be held accountable for the excess.
Benefit Principle in Other States
In states where legislation remains silent on excess responsibility, it is our view, the benefit principle comes into play. This principle emphasises that in some instances the true beneficiary of a claim is the unit responsible for the damage, instead of the unit requiring repairs. This is because the responsible unit benefits by not having to cover the costs they are liable for in the unit below.
It's important to acknowledge that when legislation doesn't explicitly address a particular matter, the responsibility of assigning liability for an excess may fall to a tribunal or judge. This determination could occasionally differ from our own professional perspective.
Navigating excess responsibility can be contentious in strata insurance, often leading to uncertainties regarding liability. Seeking advice from a knowledgeable Strata Manager or the team at Strata Insurance Solutions can provide much-needed clarity.
Expert Assistance from Strata Insurance Solutions
Strata Insurance Solutions is your trusted partner when it comes to understanding the nuances of strata insurance claims. With expertise in Australian legislation and property insurance, we can help you navigate complex situations and ensure you make informed decisions.
Strata Insurance plays a pivotal role in safeguarding your strata property investment. Whether it's understanding excess responsibility, mitigating risks, or making informed choices, our experienced team is here to guide you.
For any questions related to strata insurance, contact Strata Insurance Solutions today.
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.