This article is about the strata insurance dispute resolution process.
Table of Contents:
- QUESTION: The remediation of damage from an incident requires the lot owner to vacate their premises for repairs. Does the strata insurer handling the claim have a ‘duty of care’ to the affected lot owner?
- QUESTION: A garbage truck damaged our external wall. The company’s insurance paid to repair the damage but we are not happy with the finish. What happens now?
- QUESTION: While waiting for dispute resolution on a claim, can you repair damaged areas?
Question: The remediation of damage from an incident requires the lot owner to vacate their premises for repairs. Does the strata insurer handling the claim have a ‘duty of care’ to the affected lot owner?
Answer: In the context of an insurance claim, insurers and their contractors have a duty of care.
Duty of care is an obligation imposed on individuals and organisations to take reasonable measures to prevent foreseeable harm or injury to others.
In the context of an insurance claim, insurers and their contractors have a duty of care.
Legal claims associated with duty of care and negligence can be highly nuanced and are considered on a case-by-case scenario by legal professionals and judges (if the claim ends up in court). Claims are never black and white, and legal liability will vary based on the circumstances. The outcome of such claims depends on various factors, including policy terms and conditions, foreseeability, reasonable care, proximity, breach of duty, causation, statutory duty and contributory negligence.
It’s crucial to understand that while the standard of care imposed on insurers is high, it is not unlimited. Policyholders also bear a responsibility to take reasonable measures to prevent foreseeable harm or injury and mitigate damage to the best of their ability.
If you believe the insurer has breached their duty of care, depending on the severity of the issue, you should first raise concerns with the insurer. In some cases, referring your concerns through the dispute resolution process may be appropriate. In more complex or severe circumstances, it may be appropriate to seek legal advice.
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 October 2023 edition of The QLD Strata Magazine.
Question: A garbage truck damaged our external wall. The company’s insurance paid to repair the damage but we are not happy with the finish. What happens now?
Our building is located in NSW. A garbage truck knocked down part of our front complex wall. Repairs were carried out through the garbage truck company’s insurer.
Repairs were not carried out satisfactorily. You can see where the wall was repaired. The rendering does not match the original finish of the wall.
The committee notified the company over 2 months ago to say the repairs were not carried out to a satisfactory standard. We have followed up and been told their “insurance company is still considering” the next steps and the tradespersons disagree the job has not been completed satisfactorily.
Where do we complain?
Answer: Have another tradesperson provide a report and a quote to rectify the unsatisfactory work.
Workmanship issues can arise from time to time with claims and such claims can be technical and may end in the builder and property owner not agreeing on the issue.
The best way to dispute that the works are not done to an acceptable standard would be to have another tradesperson provide a report and a quote to rectify the unsatisfactory work.
If the claim is through the strata insurer and they arranged the repairer, they will have to warranty the work and you can refer your concerns to the insurer.
If you arranged repairs yourself and lodged a claim via strata insurance, you would need to dispute this with the repairer or if applicable and necessary, via the process set out on NSW Fair Trading for “Home building dispute resolution”.
If the work was carried out by the owner of the trucks’ insurer rather than the owners corporation’s insurer, you could alternatively lodge a letter of demand with a report and quote to their insurer to rectify the work.
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 NSW Strata Magazine.
Question: While waiting for dispute resolution on a claim, can you repair damaged areas?
Answer: Repairing during dispute resolution is something I would highly recommend if you have the means to do so.
Absolutely. Yes, you should. If the insurer has assessed and denied the claim, conducting repairs will not be prejudicial to your claim.
Repairing during dispute resolution is something I would highly recommend if you have the means to do so. The reason why this can be useful for you is if the insurance company is using expert witnesses and you engage a builder to do the repairs, they might find something that the expert witnesses have said which isn’t right or correct. Repairing damage with a qualified builder or tradesman is a really good opportunity for you to get information about the insurer’s expert witness report and you may get that advice for free.
If you’re paying a builder to do a repair, they’re probably more than happy to put a few sentences together in an email as to whether they disagree with a certain report and why.
Also, carrying out repairs at that stage is going to help you in quantifying your loss. If you’ve got the final invoice, you can add that to your dispute submission.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129
This post appears in the December 2022 edition of The NSW Strata Magazine.
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.
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