Water can manoeuvre its way into even the tiniest nooks and crannies, potentially leading to significant damage over time. Detecting defects and leaks in strata properties can be challenging, primarily due to the large structures and intricate network of water pipes, electrical wiring, and air conditioning and ventilation systems.
If an issue occurs with such equipment and goes unnoticed, it can potentially cause considerable damage to fittings or fixtures, leading to costly repairs. It may event require residents to leave their property.
Water damage is a problem that isn’t just inconvenient – it can have severe financial repercussions and depreciate the value of a building. Keep reading to understand the leading causes to look out for and practical tips for preventing and avoiding water damage on your owners corporation, body corporate, or strata property.
Water damage can occur on an owners corporation, body corporate, or strata property for various reasons. The most common causes of water damage to look out for include:
In large or complex building constructions, tracking and inspecting the cause of water damage can be challenging. In some instances, an engineer or leak detection specialist may be required to find the source of the leak and recommend repairs.
There are some simple things committees, owners, and residents can do to protect themselves from water damage that require little to no technical know-how.
For self-managed schemes, owners’ corporations or body corporates are generally responsible for building maintenance, which plays a vital role in protecting the property’s value and structure. However, leveraging the knowledge and expertise of a strata or building manager or maintenance services can help simplify this process and guide owners, corporations, or body corporates to practice maintenance procedures following state laws.
For example, utilising a state-specific facilities management service like BFMS (NSW only), which has extensive hands-on knowledge and experience in New South Wales, can help improve efficiency and potentially lower operating costs and risks for strata plans.
Consider compiling a handy maintenance guide, with practical and actionable tasks included to check and maintain water systems within their premises. It also makes sense to share a list of reputable and qualified service providers with lot owners so they can engage specialists familiar with the property. Not only can they provide a more personalised, comprehensive repair solution, but they can also work proactively with the committee and other lot owners to address potential problems and take steps towards avoiding property water damage.
An annual maintenance plan is a preventative maintenance schedule and record of compliance for plant and equipment within a strata plan or community title scheme. This yearly schedule helps identify:
Additionally, understanding who is responsible for maintaining and repairing utility infrastructure in a strata property is essential. According to state government legislation and relevant regulations, the committee, body corporate, or owners corporation is responsible for the upkeep and repair of infrastructure within common property.
However, when the utility infrastructure serves only a single lot and is confined within the lot’s boundaries (without sharing a common boundary with another building area), the responsibility for repair shifts to the lot owner.
For a more detailed understanding of who’s responsible for strata property water damage, it is best to refer to state-specific government websites and legislations such as:
Insurance is crucial in safeguarding strata properties from the financial impact of water damage. A well-rounded insurance policy can take care of repair and restoration costs. However, properties with a record of water damage might be deemed high-risk, potentially resulting in increased insurance premiums. Potential buyers could see this additional cost as a downside, affecting the property’s attractiveness.
It is essential to periodically review your insurance coverage that suits your property’s value and condition. We recommend consulting with an insurance advisor or broker to access the appropriate levels of protection to help alleviate some of the financial burden that water damage may inflict on the owners and residents. Engaging an insurance advisor or broker can be beneficial in obtaining the right level of protection, helping to mitigate the financial strain that water damage could place on owners and residents.
Discovering water damage in a strata property often triggers immediate action, with strata committees usually filing an insurance claim. However, submitting a claim doesn’t assure its acceptance, as insurers may reject the claim for several reasons. Insurers might argue that the damage has been evident for an extended period, and any ‘reasonable person’ would have noticed the issue and taken timely action to prevent or repair it.
When the situation allows, you don’t want to miss out on the chance of an insurance claim. Strata committees, body corporates, or owners corporations with a thorough maintenance history and detailed records stand a stronger chance of contesting such claim denials. Demonstrating a governance model that emphasises consistent building maintenance and performance, possibly through services like Community Health & Safety, can be compelling. By showing proof of proactive maintenance and repair practices, strata properties can improve their odds of a favourable claim outcome.
You can also click here to download our FREE Community Living guide series on how to protect your property against water damage. If you want to learn more about our services, click here for a free assessment.
