Loss of rent from body corporate

I have a rental property in Brisbane. A water leak arising from a pipe supplying an upstairs unit caused water damage to the ceiling, the power had to be cut off to the bathroom due to water leaking through the light fittings.

Body corporate/ building manager had the leak rectified, ceiling repaired and electrical fittings repaired and connected. This took over a month. The tenant had to find alternative accommodation as the one bathroom was not usable. No rent was paid and the tenant broke the lease after two weeks of it not being repaired.

I have lost about a months rent, initial plumber cost and advertising and letting fees.

I have landlord and contents insurance (no building as it’s a body corporate) but they have rejected the claim as the loss of rent arose from a water leak which is only covered by building insurance. The body corporate/strata have stated their building excess is too high and they won’t be submitting a claim and won’t be reimbursing me.

Is the body corporate liable for the monetary loss if they refuse to submit an insurance claim? And If so would I lodge a claim through QCAT?

Thanks

 

Without knowing too much about the BC, I would guess they are calling your bluff. Is it worth consulting a solicitor to help them choose to pay you? Probably not, but Daryl @RPI might be able to comment here.

 

The lot owner from where the leak started is liable, you would need to seek compensation from them through QCAT.

Water leak excesses on strata policies are usually quite high, around the $2500 mark because it happens so often, however just because that Lot owner chooses not to pay the excess and make a claim doesn't absolve them of their obligations to you.

Re: the losses occurred on the tenancy front, I'd be having another look at your landlords insurance PDS. Is it self-managed?

 

Not self managed, through a real estate agent. Insurance is through NRMA- landlords and contents. Unit that leak came from is self managed.

We are out of pocket about 3k so probably not worth consulting a solicitor at this stage.

Insurer stated that it was not covered under landlords insurance as loss of rent was result of repairs from a building issue but initially said they would make an exception and pay the loss of rent. It took us several months to get the paperwork they required (building/ plumber report, documentation from agent about lease and loss of rent) and now we are dealing with a different employee/supervisor who is saying we were provided incorrect information by the case worker and they won’t be covering anything.

 

Threaten to take the business elsewhere, especially if you have several policies with the same insurance company.

 

Do you have any of the initial discussion of an exception in writing? Email or physical?

 

Get a copy of the PDS for the strata insurance. It will be on their website. Alternative accommodation / loss of rent is a normal inclusion, should be on the certificate of insurance including excess. Make a claim yourself.

I would like to think that the excess is paid once for the insured event (pipe broke) and all repair+accommodation costs come under a single claim.

And join the executive committee.

 

I will need to get a copy of the body Corp/ strata pds. It’s a very large complex and it’s managed by a company who are being fairly defensive. Along with refusing to claim on building insurance they have thus far refused to provide a scope of work completed in relation to the repairs despite multiple written and telephone requests (landlords insurance company requested this).

There is no written evidence of the insurance company’s initial confirmation that they would provide cover but they confirmed today that their records show on xx date employee xx advised us we would be covered. Apparently we were told wrong but they are going to decide the outcome of the claim at some weekly review they have at the end of the week so fingers crossed.

Insurer advised that the only loss of rent they cover is for tenant default for customers in a strata complex. There is no opt in extras that we can pay to cover ourselves in the future so if they don’t come to the party will definitely have to shop around for a more comprehensive insurer.

Thanks for all the advise thus far

 

The strata insurance details should be in their owner portal.

 

Agree 100% @Michael Mitchell ! They don't get to decide what they are and are not liable for based on the amount of their excess!

- Luke

 

So we got confirmation from NRMA today they we were misinformed by the original case manager about them making a good will payment as it is technically exempt from their policy and that they will not be covering the loss. They apparently do not offer a product to cover loss of rent in strata complexes unless the loss arises from tenant default.

Also checked the body Corp insurance and the excess is substantially more than our loss.

Would my next step be to seek restitution from the body corp or the individual owner of the above unit? Or do I need to accept the fact that sometimes these things happen and write it off (The leak was from pipe into the shower mixer of the unit above).

Thanks

 

To give some context, what is the value of:

1. Rent loss
2. Cost of the repairs (estimated)
3. Body corporate excess

 

1- Rental loss is 2.5k
2- no cost to me as all repairs were completed by building maintenance and a contractor plumber and electrician. This was organised and covered by body corporate.
3- excess is 5k