Strata insurance claim rejected, is this lawful?

[Deactivated] on 07/05/2019 - 13:05
Last edited 07/05/2019 - 13:09

Hi all,

Early this year, a brick column in the complex parking developed a fault, which caused bricks to crumble off and fall on my car, damaging it. My car was parked in my spot at the time. The fault developed suddenly and I wasn't aware of it until the bricks came down onto the car.

I raised the matter with Strata around January, they then took it up with their insurance broker. Following numerous back and fourth communications, the insurer finally notified me last week that they rejected the claim. Their response included:

"Liability arises when a party either acts in a negligent manner, or through inaction, fails a duty of care, allowing damage to arise. Upon review of the information we have gathered int his matter, we do not believe that our insured has breached their duty of care, nor acted negligently in this matter."

Does anyone have any suggestions on what I can or should do to have this resolved? It seems like total BS and they're just trying to get out of it. I don't see how a common property fault is not a strata insurance matter.

Home & Garden

Comments

  • thatonethere on 07/05/2019 - 13:17

    You could send the strata a letter of demand (get some quotes to repair the damage) then take them to small claims court. Note that that the strata managers can probably "punish you" and all the other occupants by hiring lawyers etc at the cost to the strata.

    Or claim on your insurance and they will have more success in chasing down the person/company entity responsible.

    Or if the damage is cheap - just pay it and get on with life.

  • Typical16-bitEnjoyer on 07/05/2019 - 13:19
    +6

    Are you comprehensively insured? This is your insurance company's fight. Not yours. Name the strata as the at-fault party.

  • Tech5 on 07/05/2019 - 13:21
    +2

    Insurance claim rejection might be legit, but that is the stratas problem. Just means they need to pay out of their own pocket

    • stratbargain on 07/05/2019 - 13:29

      Yeah this. Just because strata insurance won't pay doesn't mean Strata are not liable. Send them the bill.

    • [Deactivated] on 07/05/2019 - 14:30

      It's true!
      eg. If a drunk driver hits your car, the drunk drivers insurance company will not cover this. It doesn't mean the drunk drivers liability has been removed.

  • one man clan on 07/05/2019 - 13:27

    Never dealt with this kind of insurance before but it could be something fair trading help with? https://www.fairtrading.nsw.gov.au/buying-products-and-servi…

  • garetz on 07/05/2019 - 13:41
    +2

    The strata corp is the insurance's customer, not you, you would be suing the strata corp, not the insurance company.

    I'm surprised the insurance company contacted you directly, everything should be going through strata corp, its up to strata corp how they respond. They should be representing the owners interests. If you only rent, they are definitely not representing your interests. You would need to report it to your car insurance company and have them take care of it on your behalf.

  • [Deactivated] on 07/05/2019 - 13:57
    +2

    Are you comprehensively insured?

    (User since 2012… Surely…)

  • Ocker on 07/05/2019 - 14:05
    +1

    As I always say - if you ever want to know what your insurance does not cover, just make a cliam

  • [Deactivated] on 07/05/2019 - 14:21

    I believe it is now default for insurance companies to reject claims made directly by a third party instead of the policy holder.
    I suspect they know it will p*ss the non-policy holder off, but calculated they save the company money by hoping most will just give up.
    Sadly, they probably see it as an easy win, like a defendant turning up to court without a lawyer.

  • bargainswarrior03 on 07/05/2019 - 15:04

    Hello I work for an insurance broker and handle these type of claims representing the strata plan's interest.

    To give you perspective, you are claiming under the "liability" portion of the strata plan as the third party. The broker who sent you the message would not have made the decision, they would have merely passed on the decision made by the strata insurer.

    Yes - the insurer can deny a liability claim on basis that you failed to prove the strata plan was negligent
    - perhaps summarise your points (proving negligence eg strata plan failed their duty of car…)
    - ask the insurer why they do not think the strata plan was negligent

    usually negligence can be indicated if you can show that the strata manager or building manager was notified that there were issues or potential issues with falling bricks. then you would have to show that the strata manager or building manager failed to do anything about it.

    if you do not agree with the strata insurer's decision, you can dispute this to Internal Dispute Rsolution. But you have to get a formal denial from the strata insurer first.

    • Typical16-bitEnjoyer on 07/05/2019 - 15:26

      Far simpler, less stress, quicker result is to claim via comprehensive car policy insurer.

  • Seraphin7 on 07/05/2019 - 16:19
    +2

    Strata insurance is inherently dodgy … I'm presently dealing with a claim (5+ months and counting).

    Basically there are so many people involved … strata body corp, strata manager, broker, assessor/loss adjuster, insurer … as the end claimant you just get shuffled around and as @ssa02 mentioned, they just hope you give up. Not this little black duck!

  • OZB Al on 08/05/2019 - 07:48

    After you have been through the insurance company's complaints system you can lodge your dispute with the Insurance Ombudsman Service, which is now part of the Finance Ombudsman Service http://www.fos.org.au/

  • [Deactivated] on 27/10/2019 - 19:42

    Late update for anyone interested, just raised it with my vehicle insurer who repaired the car, they'll chase up strata now. Shame as the claim may affect my future rates.

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