strata insurance and landlord insurance

[shail]

I have an investment property. Strata called plumbers to fix a leakage problem in my unit, for which plumbers has digged a hole in the wall and will do further repairs.
My question is what is strata liable for and what is covered in landlord insurance?
1. make the wall same like before (close the hole and repaint the section)
2. take the durby out and dispose
3. put the carpet back as before (if damaged replace it)
4. anything else?

 

[womble66]

Seems to be a strata (body corporate) issue that is being addressed by the strata and will either be their insurance or come from the bc funds.

They should do all that you have mentioned 1) fix the issue & repair wall 2) clean up 3) replace/repair carpet.

Your landlord insurance won't cover any of it as its usually not for that purpose unless maybe if the contents are damaged from some act covered by the policy. Landlord insurance covers malicious damage caused by the tenant and loss of rent and associated cost but not building faults or common property issues.

 

[Wake]

It also depends what the leak is. If its a burst pipe and the carpet is damaged from the water then your landlords ins will cover this. The strata insurance never covers the carpet in your unit. If, however, the carpet is damaged by the contractors while carrying out necessary repairs, then it should be repaired/replaced by the owners corp.

 

[shail]

Thanks. its more clearer to me now.
What about painting on the repaired wall?
there was some electrical fault in the unit above and so strata contractors had to take few things out from the wall wooden brackets. they fixed everything and put the new wood bracket but didnt paint it. srata told me that this should be covered in landlord insurance.
bit confusing on what is covered in landlord insurance and what is in strata.

 

[Wake]

Yes it can be very confusing. In NSW, strata insurance does not cover carpet or paint within the unit. So your landlords policy needs to cover carpet, in some cases floating floors, light fittings, window coverings and other fittings.

The strata policy will cover built in cupboards (kitchen, wardrobes etc) vanity, loo, bath, shower screen, but ONLY for insurable events. These are owners responsibility for repairs and maintenance.

There are numerous grey areas in strata due to variations in registered strata plans, insurance policies, registered by-laws etc so it always pays to check with the strata manager if you are unsure.

To add to the confusion, one of the major strata insurers has just introduced a new policy option called "paint benefit" (I think) which basically means that for a very small amount a scheme can add this to their strata policy and have paint within units covered for insurable events. This brings NSW into line with other states that already cover this.

 

[Sez]

I am impressed to see that you have your landlords insurance as well. In the past I have seen many people go in blindly thinking that the strata insurance will cover all! Best to have a look at taking out some building insurance too. I have had a case where a landlord had strata and landlords insurance and then there was a fire in the unit. The landlord had believed they would not need additional insurance to cover repairs and then found that he was wrong. He was out of pocket quite some money for things like painting, flooring, window furnishings, light fittings etc. This was in Victoria so probably slightly different though!

I have had a case where there was a plumbing problem at a unit complex which resulted in carpets flooding and they requried specialised drying and cleaning. This was not covered by the strata insurance even though it was a direct result of a body corporate repair issue, it needed to be covered by the landlords building policy. The plumbing works that were required were paid by the body corporate kitty.

 

[shail]

I am impressed to see that you have your landlords insurance as well. In the past I have seen many people go in blindly thinking that the strata insurance will cover all!.

Dont be so quick in praising me. I do not have landlords insurance. thinking exactly as you described. when last time strata told me about paint is not covered, I started looking for the landlord insurance.that time, insurance was more than the cost of painting. so didnt go with the insurance.
But this time, I will take one. there are so many options(features) on these insurers websites but noone explains in detail (may be they do in PDC)

 

[Wake]

Like so many things it would be nice if insurance was the same across all states - would make things much easier for us investors.

In NSW you (as an owner) can't take out building cover in a strata complex. Just double check that you have a full landlords policy. Normally its the malicious damage etc that's optional and the basic policy covers your fittings etc.

 

[Sez]

Wow - no building insurance in a strata complex? Surely that should be changed!

Try calling terri scheer, they have recently upgrated their landlords insurance policy to make it better and might have the cover you need. EBM also aren't bad. Property Insurance Plus is my favourite but I am not sure if they have extended to NSW yet?!

Shail - oops At least your lesson has not been learned in a REALLY expensive way like my earlier example

 

[shail]

Not sure if I am lucky enough. The plumbing work has already started, I will be taking the insurance today, dont know if there is going to be any cooling off period.
thanks for the tips on insurers

 

[shail]

In NSW you (as an owner) can't take out building cover in a strata complex. Just double check that you have a full landlords policy. Normally its the malicious damage etc that's optional and the basic policy covers your fittings etc.

cheers. I will get the full landlords policy. will have some updates on what is covered after I discuss with the insurers

 

[Wake]

Sorry Sez - just to clarify, an owner can't take out building cover because the owners corporation already has building cover. Occasionally we get a call from an owner in a villa or townhouse who has been paying a building policy for years, not realising that the strata policy covers that. Beacause there can't be two building policies, the owner's insurer has to reimbure all the premiums they have paid.

1. Clearly the owner has never read ANY AGM documents EVER because they clearly list the cover that the owners corporation pays for each year; and

2. Clearly the person arranging their insurance has no clue because as soon as they see that the address of the property has a unit number, alarm bells should ring. It is a very, very small % of strata titled properties in NSW that are able to take out their own individual building insurance (only some 2 lot schemes).

 

[Sez]

Wake - That is really interesting but it is very good! If the owners corporation takes out building insurance to cover everything