This topic contains 6 replies, has 5 voices, and was last updated by Jimmy-T 3 weeks, 2 days ago.
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Can a strata insurance claim by the OC get rejected if an owner previously completed major renovation works without OC approval nor a special by-law?
- This topic was modified 3 weeks, 3 days ago by Jimmy-T.
You’d have to look at the terms of the insurance policy. Apart from that, it’s hard to be specific sicne you have provided so few details, such as, is the claim related to the unapproved work done? Was it the work that caused the damage or exposed common property in a way that it might be damaged?
Too many unknowns in your question to give a helpful answer.
The answer is maybe. If the owner did works that affected the common property without approval, and then an insurance claim arose in relation to issues related to that common property, and the insurer knew that the owner had done those works, then the insurer might deny the claim. Note that an insurance contract is one of utmost good faith, so both parties have to disclose everything they know that may be relevant to the contract.
Similarly – if an owner did something with their property which didn’t comply with the law or regulations, such as using part of their property in a way that was in breach of the law, then an insurer could deny a claim. What I mean by that is for example if there were an area that did not meet the requirements for a habitable space, and an owner used it as a habitable space.
Hope that makes sense.
Can a strata insurance claim by the OC get rejected if an owner previously completed major renovation works without OC approval nor a special by-law?
It might if it changed the risk in some way.
But every strata insurance policy I’ve seen covers “Lot owners’ fixtures and improvements“. An OC might not be aware of what they even are.
And to note that in many types of strata around Australia, the lot owner owns and maintains the building and so does not actually need strata approval or new by-laws/rules for internal renovations. Yet the insurance company and policy is the same around the Australia.
Any decent insurance policy should cover all sorts of stuff, known and unkown. If there is an issue Id address it then, youd get paid, or you wouldnt so you go the next cab off the rank. Just use a dear solicitor so it shouldn’t cost you a cent regardless of who pays up.
Flame Tree I don’t really understand your post, but that is not how insurance works. Insurance policies do not cover you for everything, no matter what, if they did all insurers would be broke.
I think the reason Alfredo has asked the question is a legitimate concern as to whether unapproved works by an owner will affect insurance coverage. T
