Damage To Your Apartment/ Insurance

Information for Rectification of Water Damage and Other Damage to Apartments, including Insurance Claims: Water damage to multiple levels, units and common areas – The Aurora Tower CTS35222

This Incident is outlined for owners/ residents to show how these claims can arise- more information is in the Owners’ Portal of the website – you need to register to gain access.

An incident occurred on Saturday afternoon (12 October 2019 on level 58).  A tenant moving a mattress into the unit accidentally knocked and activated the fire sprinkler system causing a large volume of water to release between levels 58 down to 25.  The water caused damage to many units and common areas on all levels.

Advice to affected unit owners and property managers

Lot owners are responsible for organising and approving the rectification of any damage within their apartments (although Building Management may assist in providing advice and information).

Costs associated with damage within apartments may be claimed under current insurance policies. However, it is important to understand that there are two types of insurance policy:

Building Insurance. This covers the building and structural component of an apartment including fixtures.  This includes walls, built-in cupboards, electrical and communications wiring and fittings, but excludes carpets and floating timber flooring.  Building insurance for apartments is included as part of the Body Corporate’s Building Insurance Policy and is managed by the Body Corporate’ Insurance Broker.  There is an excess for each water damage claim, and can be different for other claims (however, see below).

Contents Insurance. This covers furniture, carpets and floating timber flooring, and other general contents items.  Obtaining this insurance cover is the responsibility of the Lot owner or tenants.

For information and advice regarding insurance claims for damage within apartments:

Building Insurance. The Lot owner should contact the Body Corporate’s Insurance Broker.

Contents Insurance. The Lot owner or tenant should contact their respective contents insurance provider.

Where a number of Lots are affected by water damage, or other incident, the Body Corporate will amalgamate all of the Building Insurance claims and submit a single claim to the insurer and the excess is to be paid by the causer of the incident or where there is no causer identified, the Body Corporate. However, invoices associated with Building Insurance rectification works should be submitted to the Insurance Broker in the first instance.  Once the invoices are assessed as being valid Building Insurance costs, the approved amounts will be paid by the Body Corporate.  Any amounts invoiced but assessed as not being valid for Building Insurance costs will be the Lot owner’s responsibility.

Lot owners are responsible for authorising service providers/contractors to undertake any necessary rectification works within their apartment, as they are ultimately responsible for the cost of work undertaken within their Lot.

NOTE 1:  Exclusion for strata (building)insurance

The strata insurer specifically excludes repair costs related to fixing temporary flooring such as carpet and floating floors inside a lot, as they are not insurable by the body corporate under relevant strata legislation.

Any expenses associated with temporary flooring, such as carpet and floating floors inside a lot and any expenses associated with furniture and other contents items will need to be lodged with the owner’s own contents or landlord’s insurance. 

The Body Corporate advises lot owners that any costs associated with drying of floors inside their lot is the owner’s responsibility. This is the case even if make-safe drying is being conducted.

 NOTE 2: Reimbursement of paid invoice for building and structural repairs (not contents items)

If a lot owner has paid a relevant building insurance invoice (relating to walls, and built-in cupboards), they should contact Ernst Body Corporate Management to ascertain where to send the invoice. Once the invoices are assessed as being valid Building Insurance costs, the approved amounts will be paid by the Body Corporate.  Any amounts invoiced but assessed as not being valid for Building Insurance costs will be the Lot owner’s responsibility.

*Any invoices related to temporary flooring expenses should NOT be submitted.

 NOTE 3: Under no circumstances should blowers be re positioned around the building.

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