WA: Q&A Strata Insurance – Fences, Walls & Garage Doors

The LookUpStrata Team

6 years ago

These questions are about strata insurance for WA strata properties.

Table of Contents:

QUESTION: Without notice, our electricity was cut for 8 hrs to carry out long overdue repairs. Residents experienced the loss of food items due to the long outage. Can we claim compensation for this loss? Would the claim be against the strata insurance?

QUESTION: There was a hit and run incident in our building’s carport area. This resulted in damage to my carport. Who pays to repair and restore the downpipe and the carport post? I have CCTV proof of the incident. Is this covered by the strata insurance?

QUESTION: A fire caused by a tenant’s car in the basement car park resulted in $400,000 damage. Our insurance premium has now tripled. Do the tenant’s actions, under the “peace and enjoyment” of the common property, make them liable?

QUESTION: If a lot owner who conducts short term letting in his unit has a loss of rent insurance claim, should that be paid at the market rent value or the short term rental rate?

QUESTION: My strata Management Company will not release documents regarding my unit which has sustained vehicle impact damage. A lawyer has quoted $1,000 to prepare a letter regarding this matter. That is out of the question. How can I access the Impact Damage Report?

QUESTION: Is the external of a garage door covered by strata insurance?

QUESTION: The boundary fence at the back of 3 strata units has been damaged by a storm. Who pays the insurance excess on the claim?

QUESTION: My retaining wall is collapsing and the pavers are falling in. Can I claim the repairs and rectification on my strata insurance?

QUESTION: What is the level of responsibility and legal liability a lot owner has when they have a dangerous tree on exclusive use common property areas.

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Question: Without notice, our electricity was cut for 8 hrs to carry out long overdue repairs. Residents experienced the loss of food items due to the long outage. Can we claim compensation for this loss? Would the claim be against the strata insurance?

Answer: The service provider could be liable if they failed to correctly notify residents of the planned service outage.

Food items within residents’ fridges are contents items and are not covered under strata insurance. The strata insurance only covers building and common area contents.

Building: means building or buildings as defined in the strata legislation applying where your building is situated, including:

outbuildings;

fixtures and structural improvements, gates and fences;

in-ground swimming pools and spas;

marinas, wharves, jetties, docks, pontoons, swimming platforms, or similar type facilities (whether fixed or floating) that are used for non-commercial purposes and which do not provide fuel distribution facilities, unless We are advised and otherwise agree in writing;

satellite dishes, radio, television and other antennas including their associated wiring, masts, footings, foundations, moorings and towers;

underground and overhead services;

We suggest owners and tenants approach their contents insurers to claim the cost of damaged food items.

Alternatively, the service provider could be liable if they failed to correctly notify residents of the planned service outage.

Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the March 2023 edition of The WA Strata Magazine.

Question: There was a hit and run incident in our building’s carport area. This resulted in damage to my carport. Who pays to repair and restore the downpipe and the carport post? I have CCTV proof of the incident. Is this covered by the strata insurance?

Answer: Subject to the policy excess, a claim can be considered under the strata insurance policy. The property owner will be responsible for the excess.

For damage that has occurred as a result of an unknown party, the owner of the property damaged is responsible for the repairs.

If the downpipe is within the boundaries of the lot, the lot owner is responsible for repairs. If the downpipe is on common property, the strata company is responsible for repairs.

Notwithstanding, impact damage is a common event claimable under strata insurance. Therefore, subject to the policy excess, a claim can be considered under the strata insurance policy – the property owner will be responsible for the excess.

If the damage falls below the policy excess it becomes the property owners responsibility to manage repair processes and if possible the recovery against the driver.

If you have CCTV footage and can identify the driver, you may wish to contact your local police station to assist with recovering costs associated with the repairs.

Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129

This post appears in the November 2021 edition of The WA Strata Magazine.

Question: A fire caused by a tenant’s car in the basement car park resulted in $400,000 damage. Our insurance premium has now tripled. Do the tenant’s actions, under the “peace and enjoyment” of the common property, make them liable?

A fire in the basement car park caused by a tenant’s car resulted in $400,000 damage. The car was registered but uninsured. The insurers of the strata no longer wish to cover the strata unless the premium is tripled. Is the owner of the unit liable for this. Do the tenants actions under the “peace and enjoyment” of the common property make him liable?

Answer: Unfortunately, it appears the strata corporation will be the party that bears the expense through higher premiums in this instance.

Unfortunately, it appears the strata corporation will be the party that bears the expense through higher premiums in this instance. When there is damage to property, the insurer will review the circumstances and consider if there is an at fault parties they can recover from.

If the tenant was found to be negligent or responsible for the damage, the insurer will consider a recovery against them but for $400,000 of damage that is uninsured, the prospects of a successful recovery against the tenant is unlikely.

In instances where a tenant has caused damage, insurers do not seek to recover against a lot owner for their tenants actions, as it would be difficult to prove legal responsibility under common law and an insurer can not recover from a party insured by the policy (including a lot owner).

Insurers will rate on a three or five year claims history so unfortunately in this instance, it appears the claim will impact your premiums until the claim no longer appears on your three or five year claims history.

Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129

This post appears in Strata News #521.

Question: If a lot owner who conducts short term letting in his unit has a loss of rent insurance claim, should that be paid at the market rent value or the short term rental rate?

A lot owner who conducted short term letting in his unit was seeking a loss of rent insurance claim. The insurer only paid out at a market rent value rather than the short term rental rate. Of course, this amount was considerably lower than the short term rate. Is the insurance company responsible for compensation at the the short term rental rate?

Answer: Short term letting really differs from policy to policy

Short term letting really differs from policy to policy. There are some insurers who require you to have a rental agreement in place. Now, obviously, that’s not possible.

You really need to get advice specific to what the coverage is under the policy. If you’re not being treated fairly in a claim, a good broker would put your case forward for you and fight the issue.

Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129

This post appears in the July 2021 edition of The WA Strata Magazine.

Question: My strata Management Company will not release documents regarding my unit which has sustained vehicle impact damage. A lawyer has quoted $1,000 to prepare a letter regarding this matter. That is out of the question. How can I access the Impact Damage Report?

Answer: If there has been an insurance claim that resulted from the incident, you can contact the insurer directly and request repair documents related to the damage to your unit.

If there has been an insurance claim that resulted from the incident, you can contact the insurer directly and request repair documents related to the damage to your unit.

The insurer may or may not provide information to you in the first instance. If they do not provide the documents requested, you may wish to discuss your right to privacy and access to information they hold about your property. The insurer also has a dispute resolution process you can access.

Alternatively, you can follow the strata dispute process in pursuing a dispute against your strata corporation outlined in the following link provided for by WA legislative body Landgate: Guide to resolving strata disputes

Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129

This post appears in Strata News #480.

Question: Is the external of a garage door covered by strata insurance?

Is the external of a garage door covered by strata insurance?

Damage was done by an unknown vehicle, and we filed a police report. Does strata cover this or is this up to the resident?

The garage door’s driveway is on common property.

Answer: Strata insurance generally covers the Insurable Assets of the strata company.

Strata insurance generally covers the Insurable Assets of the strata company. This includes structures that are fitted to the building and, as an example, a garage door.

With impact damage to a garage door, the insurer will generally ask if the third party person can be identified, otherwise, the excess will need to be paid by the strata and the door will then be repaired or replaced under the insurance policy.

Leonie Milonas PSC Property Lync Insurance Brokers E: leonie@lyncinsure.com.au P: 1300 127 503

This post appears in the May 2021 edition of The WA Strata Magazine.

Question: The boundary fence at the back of 3 strata units has been damaged by a storm. Who pays the insurance excess on the claim?

The boundary fence at the back of 3 strata units has been damaged by a storm. Strata insurance claims have been submitted by both neighbours and accepted. The strata is self managed by the 3 owners however there is a discrepancy about who pays the excess of $500 on the claim.

Is it by the strata company or the lot owner whose property backs onto the boundary fence? It is my understanding that the fence is owned and insured by strata and therefore the responsibility of the strata company.

Answer: The strata insurance policy is arranged by the strata company and therefore the excess is generally paid by the strata company.

The strata insurance policy is arranged by the strata company and therefore the excess is generally paid by strata company.

In respect of boundary fencing and retaining walls, it depends on who owns the boundary fencing and retaining walls – which is determined by the Strata Plan. However putting that aside in most instances the above may apply, unless in instances where the strata company has bylaws that deal with cost recoveries around excesses, or some other resolution is made at your general meeting regarding excesses.

General Disclaimer: This response is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial, strata or legal advice. You should consult with a qualified strata or legal advisor.

Leonie Milonas PSC Property Lync Insurance Brokers T: 1300 127 503 E: leonie@lyncinsure.com.au

This post appears in the October 2020 edition of the WA Strata Magazine.

Question: My retaining wall is collapsing and the pavers are falling in. Can I claim the repairs and rectification on my strata insurance?

I purchased a unit in February 2012.

In 2016 I found that the soil along the unit retaining wall started collapsing. I thought it was just a minor soil settling issue so I refilled and had the pavers re-done.

In early December 2017, the soil underneath the pavers collapsed at a larger scale and I refilled and pavers re-done. Recently after rain over the winter, the pavers have collapsed and a hollow has formed along the retaining wall. This has now turned into a major issue. I have been advised it has not been engineered securely.

I have a Common Strata Residential Insurance Plan and I’ve paid a building levy under the common strata scheme. Could I claim the repairs of the damage on strata insurance? Who should I bring up this issue with for resolution and/or rectification? Please advise.

Answer: First, you need to establish who is responsible for the retaining wall. Is it the Strata Company, is it the neighbouring property or the lot owner?

Please note: this response was provided prior to the proclamation of the new strata title amendments.

When pavers collapse without a physical cause, the cause may be something that is happening underneath the earth. Further, where retaining walls are also involved, it is important to identify the underlying cause by obtaining a report from a specialist in that area of expertise such as retaining wall specialist or structural engineer etc.

Generally, strata insurance does not cover Earth Movement unless from events such as an earthquake or seismological event and only where stated that those things are insured within your policy coverage. Further, limited cover applies to retaining walls with specific exclusions applying to retaining walls in most strata insurance policies.

You need to establish who is responsible for the retaining wall. Is it the Strata Company, is it the neighbouring property or the lot owner?

The matter should be referred to your Council of Owners / Strata Manager or if you are a self-managed scheme, you might refer to your local council to provide information to help. You should also seek legal advice.

A specialist report should be obtained, as mentioned above, that identifies the issue. Earth Movement or subsidence which may cause damage to a retaining wall is unlikely to be an insurance matter unless not excluded, however, the matter should be referred to the insurer in any case for consideration and disclosure of the issue.

Leonie Milonas PSC Property Lync Insurance Brokers T: 1300 127 503 E: leonie@lyncinsure.com.au

This post appears in Strata News #227.

Question: What is the level of responsibility and legal liability a lot owner has when they have a dangerous tree on exclusive use common property areas.

I’m searching for some information regarding the level of responsibility and legal liability that a lot owner has when they have a dangerous tree on exclusive use of common property areas.

When I bought my unit the courtyard came with an exclusive use bylaw written in 1977. The bylaw states that I must maintain and repair the area. At that time, there were 2 large trees in that area. I didn’t think too much more of it. The trees are not on the marked area of the exclusive use area of the strata plan written back in 1977. I’m trying to find out if there is an updated strata plan.

One of the large trees did fall on my house during a storm in 2010 and caused a lot of damage. The strata took care of the insurance claim and repairs.

I’ve started to get concerned about the size of the other tree and it could be at risk of falling on my house. I notified the strata company and they said that it was my responsibility to remove the dangerous tree at a cost of $3000. They have also stated that if the tree fell on my unit or a person I could be personally liable for damage or injury.

I am not on the insurance policy as an individual, the owner corporation is. I thought that regardless of any exclusive use by law, the legal responsibility to protect common property or a building from an identified risk such as a dangerous tree lies with the owners corporation, not the individual lot owner.

Would it be possible for someone to confirm if I’m correct and if not, clarify what ‘maintenance and repair’ actually entail? Would the removal of a dangerous tree (over 10 – 12 metres tall) on common property with exclusive use come under ‘repair and maintenance’ of exclusive privilege?

The tree presents a safety hazard to common property and an OSH issue to residents if it falls, also if it’s removed there are also hazards as specialized equipment including a crane will be required and it will also cost thousands of dollars. I want to know from a legal point of view if I remove the tree myself and cause damage to common property am I liable? Also if I leave the tree in place and it falls am I legally liable. The only insurance I have is the body corporate insurance we pay in our strata fees. Previously another large tree fell on my house which our body corporate insurer covered.

It’s my opinion that substantial pruning or removal of a dangerous tree falls outside the scope of reasonable repair and maintenance, such as weeding, minor pruning, sweeping of leaves and watering etc. I think it’s actually a safety hazard that should be reported to the body corporate and insurer.

Answer: Trees and tree branches can be subject to storm and wind damage and sometimes sudden & other causes can make trees or their branches fall, some of which are covered by the strata insurance and some excluded.

Please note: this response was provided prior to the proclamation of the new strata title amendments.

This response is providing general information only and not legal advice in any way.

In respect to the specific exclusive use by-law relating to your scheme, we are unable to comment and you should seek legal advice.

In our experience, trees and tree branches can be subject to storm and wind damage and sometimes sudden & other causes can make trees or their branches fall, some of which are covered by the strata insurance and some excluded. Typically strata insurance provides indemnity to the Strata Company against legal liability for causes relating to negligence of the strata company. An owner of a lot within a strata should have contents insurance, which includes personal legal liability for their negligence.

Trees, depending on the type of tree may have protective laws, so contacting your local council to verify any local laws, regulations or guidelines are in place or available for the trees. You may wish to enlist the services of a tree specialist (Arborist or tree surgeon) to examine the tree and provide a report on its condition & safety and the best method of ongoing maintenance. Depending on who is responsible, the strata company or the lot owner, you would need to act on the report, which may include advising your insurer for specific insurance advice. These are some steps that can be taken towards garden maintenance on common property and inside your Lot.

Leonie Milonas PSC Property Lync Insurance Brokers T: 1300 127 503 E: leonie@lyncinsure.com.au

General Disclosure The answers to these questions are prepared as general informational purposes only, and is not legal advice and should not be relied on as legal or insurance advice. You should consult with a qualified insurance or legal advisor.

General Advice Warning This advice has been prepared without taking into account the client’s objectives, financial situation or needs. Because of that, before acting on the above advice, the client should consider its appropriateness (having regard to their objectives, needs and financial situation).If the advice is related to the acquisition of an insurance contract, the client should obtain a Product Disclosure Statement relating to the product before deciding whether to acquire it.

This post appears in Strata News #211.

Have a question about strata insurance for WA strata properties or something to add to the article? Leave a comment below.

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The answers to these questions are prepared as general informational purposes only, and is not legal advice and should not be relied on as legal or insurance advice. You should consult with a qualified insurance or legal advisor.

If the advice is related to the acquisition of an insurance contract, the client should obtain a Product Disclosure Statement relating to the product before deciding whether to acquire it.

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