This article provides Q&As received from QLD lot owner’s about strata title insurance coverage for water damaged caused by apartment appliances such as dishwashers and washing machines.
Table of Contents:
- QUESTION: How proactive should the building manager or body corporate committees be regarding educating, warning or banning the charging of devices such as computers, scooters or bike lithium-ion batteries in apartments by residents?
- QUESTION: The supplied washing machine valve in our rented QLD unit failed and resulted in a leak that caused damage to the unit’s ceiling below. We are being pressured to pay for the repair? Who is responsible?
- QUESTION: Is an individual apartment dishwasher covered under the body corporate’s strata building insurance or do they fall under lot owner’s contents insurance?
- QUESTION: Could you please confirm that a plumbed-in dishwasher is excluded from strata title insurance under Strata regulation in QLD?
Question: How proactive should the building manager or body corporate committees be regarding educating, warning or banning the charging of devices such as computers, scooters or bike lithium-ion batteries in apartments by residents?
How proactive should the building manager or body corporate committees be regarding educating, warning or banning the charging of devices such as computers, scooters or bike lithium-ion batteries in apartments by residents? Self-igniting batteries/chargers have caused serious fires. Could the building’s fire insurance be at risk if pre-emptive action is not taken?
In a similar vein, would it not be incumbent upon the building manager’s overall responsibility for maintenance and safety (preventative and actual) to have a plan for building-wide inspections and/or renewal of flexible water supply hoses periodically? I understand they are susceptible to failure after five years and could easily cause extensive damage to a high-rise apartment complex.
Answer: Placing restrictions on charging devices such as computers, scooters or bike lithium-ion batteries in apartments goes beyond what most strata buildings do.
A body corporate has limited jurisdiction on what it can make owners do inside their lot, and I would recommend the body corporate seek advice from their strata manager on whether a by-law can be drafted to cover off on any concerns the body corporate has about lot owner activities.
If an owner is doing anything contrary to law or council regulations when charging devices, the body corporate may report this breach to the relevant governing body. Regulations and laws are commonly established to help minimise risks associated with activities deemed to be risky.
A body corporate is expected to take reasonable action to minimise risk. Placing restrictions on charging devices such as computers, scooters or bike lithium-ion batteries in apartments currently goes beyond what most strata buildings do in this regard.
Claims history is a major consideration when insurers assess a proposal for new insurance. If there is a major fire claim, this may impact the insurability, premiums and excesses imposed by the insurer.
Concerning flexi-hose inspections, the building manager’s duties may only be limited to managing common property. However, they may facilitate the inspection if it is within the scope of their services or if they otherwise agree to assist in this regard.
Owners will typically be responsible for maintaining their lot (including flexi hoses) in good condition in accordance with the BCCM Act. The committee can make recommendations to owners to inspect their flexi-hoses but may have limitations on enforcing the inspection of hoses.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
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 July 2023 edition of The QLD Strata Magazine.
Question: The supplied washing machine valve in our rented QLD unit failed and resulted in a leak that caused damage to the unit’s ceiling below. We are being pressured to pay for the repair? Who is responsible?
The supplied washing machine valve in our rented QLD unit failed and resulted in a leak that caused damage to the unit’s ceiling below. Our landlord insurance policy was denied. Two appeals were also denied. The strata manager advised building insurance excess for water damage is $5000. The quote to pay to repair water damaged ceiling is just under $2000. We are being pressured into paying it. Who is responsible to pay this?
Answer: Submit the demand for compensation to your landlords/contents insurer. Make sure you specifically ask them to lodge the claim under the legal/public liability section.
The owner of the washing machine may be found legally liable for damage to the ceiling of the lot below, whether that be the tenant or the lot owner.
If the owner has landlords insurance (or contents insurance for tenants), there will be a section under that policy for Legal/Public Liability. While the strata insurance policy may have a $5,000 excess, it is unlikely the landlords insurance will have the same excess applying.
In this case we would recommend submitting the demand for compensation to your landlords/contents insurer. Make sure you specifically ask them to lodge the claim under the legal/public liability section. In the question, they advise the claim was denied, this may be because the claim is under the property section when it should be under the liability section.
The insurer will then review the demand and determine whether they believe the owner of the washing machine is liable. If they believe they are, they will make a settlement to the lot owner with the damaged ceiling or alternatively, they will deny liability in circumstances where they do not believe the machine owner is liable.
If there is no landlords/contents insurance the owner/tenant will be responsible for dealing with the demand by the lot with the damaged ceiling.
I am happy to take further questions offline and assist with the claims process.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
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 Strata News #565.
Question: Is an individual apartment dishwasher covered under the body corporate’s strata building insurance or do they fall under lot owner’s contents insurance?
Does an apartment’s dishwasher form part of entire building insured value? And if so, is it insured under the strata building insurance? Does that mean when the dishwasher is retired, the Body Corp’s sinking fund must replace it with the same model? Are there replacement model and value bylaws required?
Or, do individual apartment dishwashers fall under lot owner’s contents insurance?
Answer: While the Body Corporate may have responsibility to insure items in your lot, outside of what is paid for by an insurer in an insurance claim you are responsible for maintaining property in your lot.
There can often be a misunderstanding about “Responsibility to Insure” vs “Responsibility to Maintain (ownership)”.
While the Body Corporate may have responsibility to insure items in your lot, outside of what is paid for by an insurer in an insurance claim you are responsible for maintaining property in your lot.
So if the dishwasher breaks down and it is not an insurance claim, the lot owner is responsible for repairs to the dishwasher. If the dishwasher is burnt in a kitchen fire and is insured by the strata policy, the strata insurer pays.
Like with other permanent fixtures and fittings, the strata policy will provide cover for those fixtures and they can not be covered by contents insurance. But if an insurance claim does not cover those fittings, the lot owner has responsibility to maintain the fittings (i.e. for maintenance).
Lot owners should have contents insurance to cover things not insured by strata insurance such as but not limited to carpet, curtains, appliances not plumbed or fixed in & aircon units servicing an individual lot (QLD only).
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
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.
Question: Could you please confirm that a plumbed-in dishwasher is excluded from strata title insurance under Strata regulation in QLD?
Could you please confirm that a plumbed-in dishwasher is excluded from strata title insurance under Strata regulation in QLD? The dishwasher is installed inside the unit and owned by landlord but it is plumbed-in.
Strata Insurance says it is not covered under the Strata Insurance policy as per QLD Legislation.
Answer: If it is a permanently built-in dishwasher that is plumbed in then it should fit the definition of building for insurance purposes (like with ovens).
Under the Body Corporate and Community Management (Standard Module) Regulation 2008 for the purpose of insurance building as defined as:
The building includes improvements and fixtures (but not including carpet) forming part of the building, but does not include —
- temporary wall, floor and ceiling coverings; or
- fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
- mobile or fixed air conditioning units servicing a particular lot; or
- curtains, blinds or other internal window coverings; or
- mobile dishwashers, clothes dryers or other electrical or gas appliances not wired or plumbed in.
If the dishwasher is able to be removed by the owner then it is my understanding that it does not fit the definition of a fixture and needs to be claimed on the owner’s landlords insurance.
If it is a permanently built-in dishwasher that is plumbed in then it should fit the definition of building for insurance purposes (like with ovens). To avoid any issues with insurance owners should have landlords or contents insurance to avoid gaps in cover.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
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 Strata News #232.
Have a question about whether dishwashers are covered by strata insurance or something to add to the article? Leave a comment below.
Read Next:
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Hi Andrew
There are a few things to understand:
1. The BCCM Act state that “For an event affecting only 1 lot, the owner of the lot is liable to pay the excess unless the body corporate decides it is unreasonable in all the circumstances for the owner to bear the
liability.”
2. Insurance policies are for replacement value only (like for like);
3. if the repairs to your dishwasher are not an insurance claim (i.e. maintenance) you are responsible for maintaining all items that form part of your lot.
Tyrone
Hi Andrew.
I have responded to your question in the above article.
Interesting, 3 aspects here to this dilemma ?
1 does that mean dishwasher forms part of entire building insured value? And thus insured only under building damage (and warranty?). That means when the dishwasher is retired that Body Corp sinking fund levies must replace with same model? Well, that many be difficult many years on.. So is a replacement model and value bylaw required here?
Or
2 Does lot owner have contents insurance as you suggest that covers all fixtures and fittings, and body corporate insurance only looks after all common property assets which includes roofing over all lots, lifts and fire doors, AND utility services to each lot as are common property access services like sewerage, water, power and tv?
3 So is the BCCM act here is at fault for not thinking through the practicalities of said dishwater et al?
I guess the thing to ask is, should the rest of the owners help pay for my dishwasher or at least the Excess on the insurance if claimable.
What if I insist my dishwasher has to be a $4,000 smeg and the person in the unit next door only has a $300 westinghouse.
Would the OC cover only up to $300 value?