Insurance for Strata Unit

Discussion in 'Property Experts' started by thunderstrike888, 2nd Mar, 2022.

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  1. thunderstrike888

    thunderstrike888 Well-Known Member

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    Hi All,

    A friend is asking me about insurance related to a unit they want to purchase. I'm not expert with the units and strata so just want to confirm.

    1) Strata unit complexes will have strata insurance (which is essentially buildings insurance for a complex) that will cover the building itself and all common property.

    2) The individual owner will need their own contents insurance to cover damages to anything that is usually not permanently fixed such as carpets/flooring/blinds/ etc....

    So just say there is a burst pipe for something and it damages your unit and a few of the neighbouring units. Which insurance covers that?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    A bit of both.
     
  3. thunderstrike888

    thunderstrike888 Well-Known Member

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    OK.

    I've seen the minutes of that strata meeting saying that if there is a burst pipe or flex hose or something that the owner of the unit block will be held responsible? Is that correct?

    I don't see how an owner can be held responsible for a burst pipe. Unless it was due to prolonged negligence or zero maintenance. That is nothing they can control.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    The water escapes from common property - that's strata's responsibility to rectify, whether the strata insurer then persues the lot owner that caused the damage is not up to the OC.
     
  5. Travelbug

    Travelbug Well-Known Member

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    If a pipe bursts IN your unit you are responsible for any damage. Why do you think negligence comes into it?
    Same as if your cars breaks fail and you hit another car, you are responsible.
    If your dog bites someone, you are responsible.
    You are responsible for the things you own. That's why people have insurance

    If the pipe bursts outside of your apartment it's a strata issue.
     
  6. sash

    sash Well-Known Member

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    Yes that is correct...so long it is in the wall cavity....but if it is external it can get tricky.
     
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  7. thunderstrike888

    thunderstrike888 Well-Known Member

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    OK so thats fine. If its the owners responsibility what insurance covers this sort of thing is the question?

    Does your landlord/contents insurance cover your unit and lets say the one below it if any issues and anything that affects the common property is covered by the strata insurance?
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Or a neighbour. If they are co-operative. eg Floor above you owner lets bath overflow and it pours through into the underneath apartment. Not a strata issue.
     
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