Strata insurance claims

[Roky]

Greetings Somersoft Community. Firstly, thank you to everyone for all the excellent information on this forum.
A question of strategy for you.
Went to the annual strata meeting. One couple who live in the block put in an insurance claim every year. They've been doing this as long as I've been here - 8 or 9 years. They claim there are water leaks from the unit above theirs. Over the years they have renovated their bathroom and kitchen with these claims. There have been many visits by contractors to find the source of the leak but it has never been found.
The strata managers only stay in the job for a few years and don't keep track of all the claims. Thus, they don't know that it happens every year.
The long-term owner of the leaking unit sold last year because he was over being blamed for the leaks.
A new owner has bought the leaking unit and had no idea that all this had gone on. The owner is bringing in a contractor to advise her of any problems.
2 questions.
1/ What documentation would ensure the new owner could have known the problems related to the unit? Have the strata managers been remiss in their keeping of records?
2/ The couple who claim every year first say it's the bathroom and then the kitchen where the leaks are. How can we stop the claimants from making claims each year? I have long doubted their legitimacy.

 

[Scott No Mates]

The only way that the issues would be known is that they are raised at the agm or at the executive committee meetings. The thing is that the bc must vote funds to investigate the leaks and repair them otherwise it will continue ad infinitum.

 

[datto]

where exactly is the water leaking from? The source must be found to 1. determine if it is a strata's responsibility or 2. the owner up above responsibilty.

In my unit, several years ago, my bathtub drain thingy-ma-jig was leaking water to the unit down below. A plumber came out, worked out where the leak was coming from, told strata who notified me to fix it at my cost.

Which I did. But I'm sure the fella downstairs was saving water by bathing in the water dripping from the ceiling lol.......ooh that's digusting.

 

[Roky]

The only way that the issues would be known is that they are raised at the agm or at the executive committee meetings. The thing is that the bc must vote funds to investigate the leaks and repair them otherwise it will continue ad infinitum.

Thanks mate.
This was done a few years ago and nothing was found. They've continued to claim since. Does the strata manager have the right to keep taking the claims?

The source must be found to 1. determine if it is a strata's responsibility or 2. the owner up above responsibilty

That's right datto. Problem is they found nothing but strata still takes the claims. This couple just complain and complain and get their own way.

My concern is they will keep putting in claims without evidence. Can we get the strata manager to verify the claims before they're accepted?

 

[Perp]

My concern is they will keep putting in claims without evidence. Can we get the strata manager to verify the claims before they're accepted?

Surely the occupiers claim directly to the insurer. And I seriously doubt any insurers pay without evidence.

I'm not understanding why you care, or what skin it is off your nose.

 

[Roky]

Surely the occupiers claim directly to the insurer. And I seriously doubt any insurers pay without evidence.

I'm not understanding why you care, or what skin it is off your nose.

I care because no-one else makes claims. It's a solid block with very few issues. These annual claims mean we're all paying more excess and have less funds for useful projects such as getting the block painted and cleaned.

 

[Perp]

These annual claims mean we're all paying more excess and have less funds for useful projects such as getting the block painted and cleaned.

Don't the funds come from the insurer, not from the strata's sinking fund? Or is the strata paying them?

 

[Roky]

Don't the funds come from the insurer, not from the strata's sinking fund? Or is the strata paying them?

Strata pays the insurer. Then the insurer pays the claiming tenant. All owners pay strata which pays the insurer who charges an excess because of all the claims.

 

[Perp]

Strata pays the insurer. Then the insurer pays the claiming tenant. All owners pay strata which pays the insurer who charges an excess because of all the claims.

Oh I think I get it now - the strata is bearing the cost of the policy excess? Sorry, that was the component I was missing; I'm with you now.

I still think the strata is probably obligated to pass on claims, then it's up to the insurer to determine if it's a valid claim or not. If the insurer is paying the claims, I think it's difficult to argue that their property isn't being damaged.

I'd instead be pushing for the matter to be thoroughly investigated. I'd push the angle of "why are these leaks continuing to happen?" rather than challenging the validity of the claims.

 

[Roky]

I'd push the angle of "why are these leaks continuing to happen?" rather than challenging the validity of the claims.

Good advice. The angle I've taken in the past. Will persevere.

 

[datto]

Find the source of the leak, smash a wall down if it comes to that. That water is leaking from somewhere and it can be found.. bring the matter up at the next AGM "source of water leak to be found, otherwise raise a motion that the insurance excess must be paid by the lot holder who makes the request for repair.

 

[Roky]

Find the source of the leak, smash a wall down if it comes to that. That water is leaking from somewhere and it can be found.. bring the matter up at the next AGM "source of water leak to be found, otherwise raise a motion that the insurance excess must be paid by the lot holder who makes the request for repair.

This approach is the best one. Only problem, we had our meeting yesterday. but will bring this up with strata manager.