Leaking roof after a storm

Discussion in 'Repairs & Maintenance' started by Tony66, 6th Mar, 2017.

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  1. Tony66

    Tony66 Well-Known Member

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    Hi,hope someone can help me to understand how the Body corp building insurance works & what should be my action ?
    After a recent storm the lower roof of the townhouse had a water leak through to the bedroom in downstairs. My PM used a local tradesman who thought it was a problem with the down pipe. It was replaced and stated that all work tested and had no issues (costing over 400/-).
    After a few weeks again there was a leak at the same place and the same tradesman now wants to remove the area of the plaster from the bedroom roof and carry out a water test. The test will cost 480/- but would cost around 3000-4000/ for full repair. The area of the roof is small.
    Now, I have the Rent cover ultra with the EBM & they thought that I should get help with the building insurance cover purchased on behalf of us by the body Corp/Strata.
    When my PM contacted the Body Corp they declined any help. They say the building insurance covers only a larger damage to a unit such as a fallen tree. There are no trees around any of the Units.
    Unless the "Sky falls" there is nothing else near by to fall on those units.
    I am puzzled now when I purchased this IP my conveyancer clearly stated to me that there is a builders insurance from the body corp and I only have to have a Land lord insurance.
    The unit is in Frankston in Vic & still have the last year of the builders warranty. When I purchased there was a similar leak over the upper roof needing repair and plaster,which was fixed by the builders warranty.
    There are lot of similar issues and the tradesman told me that it may be a problem with the roof structure which causes water stagnation with a heavy rain fall.
    I did buy this IP using a buyers agent who was happy with the condition and also B & P inspection report never picked up any roof issue.
    I am now getting a 2nd quote then to ask the original builder to see whether it is his responsibility?
     
    Last edited: 6th Mar, 2017
  2. dabbler

    dabbler Well-Known Member

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    Ask whoever manages the strata to forward who and what about the building insurance to you, then look at it yourself.

    If it is actually a building problem & is a normal strata, then it should be covered by that insurance.
     
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  3. Matthew Savage

    Matthew Savage Well-Known Member

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    Hi there,

    There are few issues all combined here.

    The first is the responsibility for repairing the actual leak - that will either be you, or the body corporate, depending on how that body corporate scheme was established, and with reference to the strata laws in your state.

    The other issue is the question of insurance for damage from a roof leak (resultant damage). This should generally be insured by the body corporate (most strata policies are national, so I have experience here, even though you are not in QLD. Generally if a roof leak is not as a result of storm damage (hail, tree etc), then the owner or the body corporate pays out of pocket to repair the roof, and the insurer pays to repair the damaged ceilings, walls etc inside the lot.

    I suggest going back to your body corporate manager with those questions, and educating yourself a bit more on the laws in your state using this website to start: Owners corporations - Consumer Affairs Victoria

    As an owner in a strata scheme, you are effectively a partner in a small-medium business and you should be fully informed of your rights and obligations.

    Matt
     
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  4. Tony66

    Tony66 Well-Known Member

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    Great advice Matt.
    Thanks a lot.
     
  5. Tony66

    Tony66 Well-Known Member

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    Thanks mate. I will now.
     
  6. Tony66

    Tony66 Well-Known Member

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    Hi all update about the issue;

    The second tradesman says there are 3 leaks in the roof on the flat deck. This was something new and definitely happened after the heavy rain.
    The Body corporation sent me the strata insurance document which says that under the policy 1, the "building" is insured. But on the definition of building the "roof" is not specifically mentioned.
    Also under the policy 1, they have mentioned that rain water damage is not covered unless it is a storm or Tsunami.
    It appears that Insurance policies avoiding to cover one of the commonest accidental damage to a house, which could occur from a heavy rain fall.
    Or it may be I am not understanding the policy wording?
    Also wonder someone can tell me is that something my PM should be investigating ?

    (see the attachments please)
    upload_2017-3-9_17-46-11.png

    upload_2017-3-9_17-46-27.png

    upload_2017-3-9_17-46-44.png
     
  7. Paul@PAS

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

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    Insurers take a tough line with roof leaks. Unless the storm caused damage that created water ingress (ie a tree, hail or lifted a part of the roof) they class the damage to the roof as your maintenance not damage from a insured event. Few policies cover ïnundation" other than rising water levels IF flood cover exists. That wont help a roof !!

    Strangely they may then pay the consequential water damage as a separate claim IF the policy definition is worded to cover it. Some exclude it or tie the ingress to storm damage.

    Reading the policy wording is always so important. Both what IS insured, what a definition means and what is excluded. All insurers provide a PDS and detailed policy wording when getting quotes and most people blindly tick the box saying they have read it when they havent. Also read renewal docs - Changes must be stipulated seperately to the PDS and a PDS cant just be issued for continued cover that contains a change.
     
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  8. Tony66

    Tony66 Well-Known Member

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    Thanks Paul,
    It appears that the insurers doesn't want to cover one of the commonest accidental damage could occur to a property after a heavy rain fall. They don't even mention the "roof" in their PDS definition.
     
  9. Marg4000

    Marg4000 Well-Known Member

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    You will be covered if there was storm damage to the roof. Sheeting lifted, panel smashed, tree falls on it etc. - there must be a clearly identifiable link with the storm.

    We had no problems with a substantial storm damage claim when hailstones smashed two skylights. We took photos before doing emergency repairs and kept the smashed panels to show the assessor.

    If is simply that the design of the roof, flashing, and placement of down pipes could not cope with the heavy rain, it is a design fault and not covered. Faulty design, faulty workmanship or lack of maintenance are NOT storm damage and won't be covered.
    Marg
     
  10. Matthew Savage

    Matthew Savage Well-Known Member

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    I recognise that font as being a CHU policy. CHU typically covers damage as a result of the issue you are describing, but not the issue itself - i.e. you fix the leak, and claim the subsequent damage on insurance.

    I believe you and/or the body corporate manager have misunderstood the policy wording. If the body corporate manager has given you advice that the damage is not able to be claimed, I would be concerned about their aptitude. If there is a grey area, you can still lodge a claim and leave the decision on whether or not it is covered to the insurer.

    You still need to ameliorate your loss, so you should get the roof (the cause of the leak) fixed immediately (either by you or by the body corporate, depending on your plan).

    Matt
     
  11. Tony66

    Tony66 Well-Known Member

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    Thanks Matthew,
    Yes,I have actually organised a roof repair company to go and fix it.
    It is CHU and you are spot on!
    I will follow up with the insurer.