Building Management Refused to Pay for Damages Caused by Pipe Burst

cmilano8 on 16/10/2019 - 07:52

3 weeks ago, there was a small leak coming from the ceiling of my (built-in) wardrobe which I called my Building Management (BM) to look at to arrange for repairs. It had been raining the day before, so we suspected it could be rain that was caused by structural damage. After the inspection, they wrote an email saying they will be assessing it. The leak stopped after a day and the damage was minimal - wet carpet inside wardrobe, some storage boxes were slightly wet.

3 weeks later, I haven't heard from them, and last Sunday morning as I was going to my wardrobe, the carpet outside of the wardrobe was soaked! I opened the same wardrobe to see that it's the same leak as before, but it was going down faster. At the rate it was going, it would have flooded my bedroom if the carpet didn't absorb most of the water. I called BM again who finally arranged for a plumber to come on Monday. Plumber came the next day, cut a hole a open and steam came gushing out - it was the hot water pipe.

Now since this hot water pipe supplies the entire building, BM will pay for the plumbing and ceiling repairs. They've refused to pay for the damages caused by the leak, however. I have Home & Contents insurance who can cover for the damages with a small excess fee. I think the BM should be held liable for the damages as I've notified them weeks ago only to be met with inaction.

Who do you think is at fault here? And what options are there for me?

Further info:
- I am the home owner
- The leaking happened in a spare bedroom, I use the wardrobe space for storage
- Damages include wet carpet inside and outside the wardrobe (need to be professionally dried, or replaced if can't be dried), swollen shelf board and base boards, slight molding on the wall, wet spare mattress, slight furniture damage

Home & Garden

Comments

  • boomramada on 16/10/2019 - 08:04
    +7

    Use your Home & Contents insurance and move on.

  • jjjaar on 16/10/2019 - 08:10
    +2

    You may be able to get BM to pay the excess but basically in Body Corp type situations your insurance will pay for anything that would fall out if you turned the building upside down and shook, regardless of fault.

  • MITM on 16/10/2019 - 08:39

    Bet you're glad you have H&C insurance - why else did you buy it ?

  • Meho2026 on 16/10/2019 - 08:53
    +5

    Im guessing you mean the strata manager not an actual building manager who is like a caretaker/janitor.

    What they never tell you is that, as a unit owner, you can actually make a claim on the building insurance without going through the strata manager.

    You should have in your records who the policy is with, if not just call up the strata management company and just ask who the insurer is. Contact the insurer directly and ask to submit a claim for damages.

    You could also contact a member of the executive committee and ask them to instruct the strata manager to submit a claim for the damage to your property, the strata manager must follow the instruction of the executive committee.

    All strata managers are evil and/or incompetent and have been put on the planet to make our lives a living hell.

    I had a very uncooperative strata manager until I successfully nominated myself for the executive committee.

    You should consider getting on the executive committee at the next AGM and whipping that strata manager into shape.

    • cmilano8 on 16/10/2019 - 20:21

      I could try getting in touch with the strata management to ask about any insurance I don't know about!

      Here's the thing though - the BM mentioned the "Owners Corp" will not meet my excess, and the Strata is going to cover for the repairs of the plumbing and ceiling only, not the damage done to the inside of my property. I suppose that's the same Strata? Do you think it's worth getting in touch with them directly about making a claim?

  • resubaehtgnolhcs on 16/10/2019 - 09:42
    +1

    Strata doesn't cover flooring (or any damage done to flooring). Not sure about @Meho's comment above regarding claiming on strata's insurance - in theory that makes sense, not sure how it would work though.

    • boomramada on 16/10/2019 - 10:40

      Technically, Strata don't cover what's inside the box. But I remember when I was a tenant, similar thing happen to me and I contact the real estate agent and landlord fix the damage and cover the entire cost, although I wasn't expecting that.

      I assume, landlord use his content insurance not the Strata insurance. But at that time I also had content insurance.
      But OP keep referring as BM, maybe it's not Strata. Either way if you have a damp carpet, it's good to fix it ASAP, mould carpet wouldn't be healthy. Perhaps talk to executive committee to cover the excess later.

    • Meho2026 on 16/10/2019 - 14:37

      Ive claimed twice like this, once when unit was flooded due to a ruptured hot water cylinder 2 floors up, got downlights fixed and 3 rooms repainted. Second time was similar to OPs, builtin wardrobe and carpet damage after heavy rains due to a problem with balcony on unit above.

      I just called up the insurance company directly and they talked me through the claim process. This was because the strata manager was a total ****. The building insurance that strata sorts out covers for damages like this.

      Strata will cover flooring if it existed when the building was built or strata titled. Ive had original parquetry flooring repaired and floorboards too (two different units).

      • cmilano8 on 16/10/2019 - 20:23
        -1

        If it would only cover the original flooring, the strata management insurance might not cover the damages - I've had my carpet replaced 2 years ago due to wear. :(

  • Seraphin7 on 16/10/2019 - 10:41
    +2

    You've entered the web of BS that gets spun by strata managers, strata insurers, your own insurers, and their various assessors and loss adjusters. Here is the classic example of where you need to consider what is likely to be the path of least resistance.

    Frankly, in broadly similar experiences to this, I prefer to deal with my own insurers, rather than the strata's. At least with your own insurers you have a direct relationship and they are actually usually pretty keen to help out. Strata insurers hide behind strata managers, insurance brokers, third party assessors/loss adjusters, etc.

    Based on what you've written, the strata insurer probably should be paying, but you may well find that claiming on your own insurance will get you a result much more quickly.

    • [Deactivated] on 16/10/2019 - 11:51
      +2

      I've dealt with this exact BS - broken downpipe between two walls. Water seeped through walls damaging specialized wiring for medical equipment and shielded wall. The issue was brought to multiple emergency meetings, nothing was done for over a year.

      The cost was eyeball waterizing.

      As you said, the BC managers hid behind every possible third party and in the end, I just got my own insurers to pay first and pursue the bloody useless BC manager.

      Legend has it, the insurer is still fighting for the monies.

      • cmilano8 on 16/10/2019 - 20:25

        I should ring up my insurance to ask if they could pursue the BM! They did ask me the chronology of the events so they got at least a side of a story - I also got some communication exchange as a proof of the said negligence.

  • Fysh on 16/10/2019 - 11:36

    The only way you will be able to have them pay is that they made no previous attempt to fix the issue when you reported it which makes it their negligence. even then its a round about of issues and probably lawyers. Im guessing you dont have insurance hence why you didnt just hand it to them. Time to get insurance.

    • cmilano8 on 16/10/2019 - 12:25
      +1

      I actually have H&C Insurance, and they are happy to cover for the damages. Out of principle, I want the BM to cover the excess fees, as my thinking is that it wouldn't have happened in the first place had they got it fixed the first time I reported it 3 weeks ago.

      I've written to them with the chronological order of the events to pry some sort of accountability out of them.

      I'd like to know what my options are should they refuse to acknowledge the negligence.

  • BenK-Oz on 16/10/2019 - 12:51
    +2

    ask the strata manager to put in a claim on the strata insurance, and that they must pay the excess on the strata policy as it is a owners corp issue, and it caused damage to other property.

    otherwise claim on your own insurance

  • Love a bargain on 16/10/2019 - 15:30

    What about just claim on your own insurance and let them pursue the body corporate? If you claim on your own insurance, the damages will get fixed quickly and you can go on with your life. It's not healthy to live with untreated water damage and mold.

    • cmilano8 on 16/10/2019 - 20:27

      This is the path I am leaning towards, but could you clarify what you meant by pursuing the body corporate? As in chasing holding them liable for the costs?

      • Love a bargain on 17/10/2019 - 00:41

        Your insurance company might step in your shoes if they think there is case against the body corporate (who may or may not then claim on its own insurance).

        It's not that different to a not-at-fault car insurance claim when you've got comprehensive insurance

        • cmilano8 on 17/10/2019 - 14:47

          Thanks for the explanation - I think this is what my insurance is doing on my behalf at the moment. Earlier today they came to inspect the damages and record an entire account of the story from 3 weeks ago. Hopefully it gets sorted in the best way possible, if not - you're all correct in saying I need to get the damages sorted soon.

  • Euphemistic on 17/10/2019 - 06:04
    -3

    The strata system is set up to not include any things that aren’t part of the building. They will be unlikely to pay for your excess, or any personal belongings. This is why you have contents insurance.

    Ca you imagine the insurance premium for a strata manager that has to cover your clothes, TV, smart lights, dinner ware, everything in the fridge etc, or your neighbours mink coat or Hifi system worth $40k? It would be astronomical. Hence, their policy will only cover what they have to repair if you weren’t there in the building. It is up to you to cover everything you brought in.

    • Love a bargain on 17/10/2019 - 21:10

      Why do you think you or your car insurer is responsible for damages done to other people's property (even if it happens to be a Ferrari or a house) should you have an accident?

      • Euphemistic on 17/10/2019 - 21:43

        Many insurance policies have exclusions and limits built in to reduce the premium. The strata may insure against contents, but with a limited claim amount.

        Your car insurance will often not cover portable items in the vehicle over a certain amount.

        • Love a bargain on 17/10/2019 - 23:18

          If one party damage another party's property through their own negligent, they're more likely than not responsible. They are responsible for the said damages whether they're insured against such loss.

          There's a different to whether you chose to insure everything you own (eg. portable items in your own vehicle, or the pipe) vs whether you're liable to someone else's property (eg. the car that you hit, or OP's furniture)

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