Make a claim

Example: most people would consider a storm event to be a one-off event, which means one policy excess is applicable. However, in cases where builders or an assessor identifies more than one point of water ingress (not caused directly by the storm), each of these exposed sections would be considered as a separate cause/event. This is because the damage sustained to that specific area would not have occurred at the same time or by the same cause.

Exploratory and reinstatement works following a burst pipe are often considered to form as part of the rectification works (e.g. when contractors need to expose wall or floor in order to repair the damaged section and reinstate area on completion). Therefore, when the cause of damage to the burst section falls under policy exclusion, the policy may not respond to cover exploratory and reinstatement costs.

Carpets within individual lots are specifically excluded from the Strata Policy, as it is considered as 'Lot Owner’s Content'. The policy would not respond to cover irrespective of the circumstances of loss, whether it is from an insurable event or a Body Corporate/Strata maintenance issue. Where Owners do not have Contents Insurance, we would recommend they consult with their Strata Managers to determine whether the Body Corporate would be willing to compensate.

For this additional benefit to trigger, there must be damage sustained to the Insured property, covered under Section 1 (building). Owner/s must produce evidence of a signed lease agreement, ledger and vacating notice to be assessed. Damages sustained to the Unit, must rule it uninhabitable/unlivable. E.g., where the occupant cannot access essential facilities such as, kitchen, bathroom, bedroom, and or where hot water and electricity is unavailable.

Where the Loss of Rent is accepted, Insurers would only look to compensate during the period of repairs which falls within policy coverage. This is often the consequential/resultant damages. Insurers may also choose to cover up until the property is re-let, where circumstances allow.

Insurers do not cover the Loss of Rent during the period of any maintenance related works, or any other repairs which are specifically excluded.

For a hydrologist to conduct a desktop assessment, where they can review existing flood mapping and report remotely, this would take up to 3-4 weeks. However, where a site inspection is required, it could take a further 10 weeks.

Fusion cover is only extended to damaged motors no greater than 5 kilowatts (6.7 hp). Where the motor forms as part of a fixed Unit, Insurers may cover the repair/replacement of the entire Unit. Any motorized items exceeding 5kw can be lodged for consideration under Section 7 (machinery breakdown).

Note, policy coverage is to be determined based on circumstances of loss and cause of damage.

For this additional benefit to trigger, there must be damage sustained to the Insured property, covered under Section 1 (building). Replacing or repairing damages to trees, shrubs, plants, lawns, or rockwork is included. Note, policy limits apply depending on Insurer.

Where a claim is accepted and Owners wish to have their preferred repairer complete works, or where Owners want to proceed with any additional private/renovation works, we can request Insurer for a cash settlement option. Note, Insurers will limit their liability based on the accepted scope of works, and most economical cost (whether this be the repair quote presented by the Insurer’s panel builder or the Insured’s builder).

Where a claim is lodged and Insured has obtained a repair quote which exceed $5,000, we would recommend a second comparative be provided. This will be most efficient for the Insurer to validate costs, meaning claim can be authorised/finalised quickly. It is important that the scope remains the same. Insured can request for a panel repairer to be appointed if need be.

An assessor can be appointed when the cause of damage cannot be determined and requires further investigation, or where damages sustained are significant and involves Multiple Lots. Large or Major Loss Claims exceeding $50,000, Insurers may choose to appoint a building consultant to scope for repairs.

Where repairs are completed prior to the Insurer’s assessment, a Causation Report with photos is essential to help validate the claimed event, and damages sustained. This can be in the official form of a repairer’s report or a written statement from the repairer confirming cause of the damage to areas in which they have attended to.

Insurers cannot proceed to authorise, or cash settle resultant internal repairs until all outstanding leaks or water ingress issues have been addressed. Whether the policy responds to cover the leak rectification works, the onus is with the Insured to mitigate loss once they have become aware of the issue. These works/cost can be submitted for consideration thereafter, once repairer confirm cause of damage.

Note, general exclusions apply, policy will not respond to cover any maintenance issues, faulty workmanship, gradual deterioration, wear and tear etc.

Generally speaking, in most strata schemes, the lot owner owns the airspace and everything in it within the boundary of the unit. They don't own the main structure of the building. The owners corporation is responsible for the repair and maintenance of common property.

Strata Community Association NSW have put together a guide with a list of items found within a building that could generally be considered common property and who's responsibility it is for the repairs and maintenance. You can access the guide here.

Please note however, the information in this guide is provided as a general guide only. Actual cover is dependent on your policy terms, conditions and exclusions that may apply with the insurer at the time of loss and applicable law from time to time.