Owners Corporation and Common Property - Can I Sue Strata Insurance?

[Ihaveaquestion]

I own an apartment as part of the owners corporation. This OC has a Strata insurance plan for the common property. My apartment building wall, as part of common property, suffered a water damage but the insurer refused the claim.

Can I sue the insurer?

I was told I have no direct contract with this insurer, I can only sue this OC. However, I think the insurer should pay for the damage. What should I do? Does anybody know anything about VCAT rules?

Thank you

 

[Paul Cott]

I own an apartment as part of the owners corporation. This OC has a Strata insurance plan for the common property. My apartment building wall, as part of common property, suffered a water damage but the insurer refused the claim.

Can I sue the insurer?

I was told I have no direct contract with this insurer, I can only sue this OC. However, I think the insurer should pay for the damage. What should I do? Does anybody know anything about VCAT rules?

Thank you

Hi Ihaveaquestion,

You may have trouble dealing with the insurer as you may not be their client, i.e. have a contract with them, as you say.

The OC I would have thought, could or should get involved, presumably, they are the insurer's client.

Also, what is the cause of the water damage - is it anyone's fault - maybe you could proceed against the person at fault for the damage.

The Financial Ombudsman Service does deal with insurance disputes, however, they may not have jurisdiction as you may not be the insured - perhaps ask them if they do have the power to deal with this situation.

Good luck, hope what I have said helps to some extent.

 

[Ihaveaquestion]

Hi Ihaveaquestion,

You may have trouble dealing with the insurer as you may not be their client, i.e. have a contract with them, as you say.

The OC I would have thought, could or should get involved, presumably, they are the insurer's client.

Also, what is the cause of the water damage - is it anyone's fault - maybe you could proceed against the person at fault for the damage.

The Financial Ombudsman Service does deal with insurance disputes, however, they may not have jurisdiction as you may not be the insured - perhaps ask them if they do have the power to deal with this situation.

Good luck, hope what I have said helps to some extent.

Thank you for the reply

 

[Wayne Russell]

Our owners have a somewhat similar situation to this (WA), so not sure where you are based in OZ & if this applies. You need know what has caused the water leakage & then check to see if the policy excludes that situation. Ask for the report/assessment from the insurance company (did someone come out & make an assessment?). Get the Owners Corporation to do this?

If I have understood this situation correctly I am surprised that the body corp has not done this because if the wall damaged is common property & insurance is not liable for damage then all the owners will be liable to pay for the repair of the damage.