Home/Contents Insurance for Leaks in Strata Property

John Kimble on 12/01/2018 - 11:31
Last edited 12/01/2018 - 12:09

Warning, longish post! Half question/Half PSA:

Woke up they other day to find water all over our kitchen bench and floor but no immediate source. After mopping up the water, we eventually noticed there was water slowly dripping out of the bottom of a power socket above the kitchen bench. I live in a strata title unit block, so I just called strata and they sent a work order to their preferred plumber. They came out and said it was most likely a leak from a pipe in wall between our kitchen and bathroom, but didn't have time to find it that day, would come back the next day. Advised us to keep the hot water off and only turn it on when needed. Next day, they came back, eventually found and repaired the leak, was the pipe that feeds the shower hot water.

Anyhoo, called up my contents insurer and they said they don't cover the cost to find or repair the leak, just the items that were water damaged (e.g. carpet, cupboards etc). They said I should speak to my strata to ask if they cover it under their insurance.

Called my strata manager and he said because the leak was from a pipe within an internal wall in our unit, strata insurance doesn't cover it.

Call back my contents insurer and asked them if they can add something to my policy so I'm covered if this happens again, they said it doesn't exist. Home/building cover is not for strata properties.

So there appears to be a gap here…I cannot be insured for situations like this (ie Any leaks from pipes located in an internal wall in a strata property are not covered so must be paid out of pocket???)?

I've checked a few PDS and all contents insurance policies don't seem to cover it, this is covered by home/building insurance, which I do not qualify for because I live in a strata property!

Is this really the case/has anyone else experienced the same?

Any comments/questions welcome.

Thanks for reading,
DJK

Edit, this is what my strata manager sent me: https://files.ozbargain.com.au/upload/190487/55558/whos-resp…

It says in point 8 on page 6 I'm responsible for it…in fact the example provided is pretty much my exact situation :(

Financial

Comments

  • o53djz7qTPY4der on 12/01/2018 - 11:47
    +2

    but didn't have time to find it that day, would come back the next day. Advised us to keep the hot water off and only turn it on when needed. Next day, they came back, eventually found and repaired the leak, was the pipe that feeds the shower hot water.

    This is appalling - I'd tell them to find the time.

    Regarding the insurance, I'd have thought the strata or body corp has insurance for such instances. I'd ask to see their policy details and go from there.

    • John Kimble on 12/01/2018 - 12:03

      Thanks, I have asked my strata manager for a copy of the policy.

  • barbarella on 12/01/2018 - 11:47
    +1

    Wow! That sounds like a BIG P.I.T.A. :/
    I have moved into a strata property recently, so I am interested in the comments received here.
    I don't have time to check my own insurance cover atm sorry.

    • John Kimble on 12/01/2018 - 12:21

      Yep, like a lot of things (especially insurance), the fine print hides lots of nasties…

  • hawkeye on 12/01/2018 - 12:05

    Strata covers the building walls kitchen ceiling doors fixed items most don't cover flooring carpet ect but few policies do.
    The rest gets covered by your contents insurance.

    If there's still a leak in the ceiling strata won't send someone around to fix and repaint untill body corp have given clearance that they have had the problem fixed.

    • John Kimble on 12/01/2018 - 12:20
      +1

      Yes, strata title insurance covers anything to do with external or common walls, but not internal walls in a unit/lot. My contents insurance (and from what I can see so far, no contents insurance provider) will cover the cost to locate and repair a leak within an internal wall. It will only cover damage to my belongings that the water damaged.

      It appears there is no way I can insure just the "internal walls" of my unit as "home/building" insurance is not available for units within a strata title.

      Would be very happy if someone can find a policy that says otherwise…

      • CLoSeR on 12/01/2018 - 12:52

        This is right regarding strata insurance.

        • John Kimble on 12/01/2018 - 13:02

          I'm biased, but that sucks! It's a pipe in a wall that is part of the building…if the leak was from the same pipe, but was located in the external wall of my unit, then it would be covered.

          If I owned a house, then I could get home and contents insurance and be covered, but I can't.

        • CLoSeR on 12/01/2018 - 13:03

          @John Kimble: I'm surprised there are pipes running through your internal wall; mine are only in common walls but im sure it's determined by the configuration.

        • John Kimble on 12/01/2018 - 13:06

          @CLoSeR: Yep, our bathroom shares a wall with the kitchen and the pipes to the shower run along it. Will definitely look to move the shower to the external wall one day haha

        • robbyjones on 12/01/2018 - 15:58

          @John Kimble: I don't think you can, we have had a few water damage claims from leaky dishwashers, showers and pipes and all have said they will pay for the resultant damage but not the fault itself.

        • Noblejoker on 12/01/2018 - 16:16

          @robbyjones: The resultant damage and exploratory and repair costs is what is in question here - nobody pays for the correction of the actual fault e.g. the dishwasher leak or hole in the pipe

          See my comment below - there are insurers who cover the internal walls etc

  • Noblejoker on 12/01/2018 - 13:13
    +1

    I presume you own the Strata unit?
    If not then any repairs are not your problem as a tenant - the landlord pays

    The insurance company I work with would cover what you require
    See below - our Contents covers whatever the Strata does not
    No insurance covers the actual leaking pipe - just like a rusty gutter etc that is a maintenance issue
    But the pipe costs $20 and cost to open the wall and find the pipe and put the wall back etc is covered

    I don't want to push for Business but send me a PM if you want more details

    TLDR - there are insurers who offer what you want - a cover that 'dovetails' with the Strata cover

    Block-quoteContents includes the following:
    (c) if you live in a strata title building, the internal paintwork, wallpaper and any fixture or structural improvement within or attached to that residence which the body corporate is not required by law to insure

  • bigticket on 12/01/2018 - 16:25

    I think you need to ask the question of who owns the leaking pipe. I don't think you own it, but if you did, you need to bear the cost.
    If it is part of the strata, then they are responsible, whether they have insurance or not.

    • John Kimble on 12/01/2018 - 16:30

      I think we own it, because it is the pipe from our instant hot water system to our shower. The issue I appear to have, is (at this stage; I will be following up with Noblejoker) I have not been able to find an insurance policy that will cover me for a leak of such a pipe, purely because I live in a strata property and can only get contents insurance.

      It seems something is amiss, unless every one in a similar situation to me has just accepted this how it is, and is happy to pay out of pocket whatever the costs are to find and repair the leak? Which I'm guessing will be in the $2k ball park area.

      • bigticket on 12/01/2018 - 16:52
        +2

        Don't be quick to assume you own the pipe. Yes, the hot water system belongs to you. Hell, you can even take it with you when you leave, but can you take the pipe?
        When the units were built, water pipes were run throughout the building and are part of the strata. If it's the original pipe when the units were built and not a pipe that you or the previous owners installed after renovating the bathroom, then I'd say you do not own it. Seek some advice on this, I am no expert.

        • John Kimble on 12/01/2018 - 16:58

          Yes, of course. I've checked a few PDS, called a couple of insurers and brokers…I'm getting conflicting information from all over the place unfortunately haha

  • Tsim on 13/01/2018 - 09:34
    +1

    Have a look at what strata sent you, the yellow section…… That should cover you.

    Basically you are responsible for the paint on the walls inwards, strata is responsible for the outwards part (if that makes sense)

  • marcnunes on 13/01/2018 - 14:07

    I might be wrong but I also did some research of this subject before. The reason I did is because I am a chairman of our Strata here in VIC.
    Our units are under the builder warranty which in VIC is 10 years. The builder cannot simply say it is wear and tear because everything he built should be ok for the first 10 years of building.

    Anyway…our insurance is a building insurance for all the units and common land. If the pipe burst in the common land, everyone will split the insurance excess cost.
    If the pipe burst in my unit, I will be responsable of the insurance excess myself.
    I suggest you to request your chairman a copy of your insurance pds. You can request to your strata manager and if they deny, try the chairman or a member of the committee. If they deny find at least the insurance name so you can download a copy of the pds from their website.
    Our insurance excess is high so we pay less premium. I will help any owner to try to recover the costs from the builder during these 10 years warranty.
    In the end if you are sure your Strata is not willing to help and you have some confidence they should, I would suggest you to make a complaint with Consumer Affairs of your state.

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