Water damage, storms, fire, accidental damage and theft are common risks for Queensland body corporates. Knowing where problems can start may help your committee and residents reduce damage, although maintenance steps cannot guarantee that a claim will be avoided.
This guide covers the main risks, practical prevention measures and checks to make before contacting your insurer.
What are the most common body corporate insurance claims?
This guide does not include current claims data to rank claim types by frequency. However, building insurance commonly considers these types of damage:
- water damage
- storm damage
- fire damage
- glass breakage
- impact damage
- malicious damage
- damage caused by other insured events.
For a building covered by a body corporate policy, building insurance must cover damage and the costs of reinstating or replacing the insured buildings, including professional fees and debris removal. The property must be returned to a new condition.
The Body Corporate and Community Management legislation and the regulation module applying to your scheme set the framework for insurance and maintenance responsibilities. The right response depends on whether the issue involves common property, a lot or body corporate assets.
You can read more in our body corporate insurance factsheet.
How can a body corporate reduce water damage claims?
Leaks can be difficult to locate, particularly when water is travelling through walls, ceilings or other building areas. Leak detection technology may reduce exploratory damage when a concealed leak needs to be found.
Regular checks can help identify problems earlier. Consider checking:
- flexi hoses and their warranty expiry dates on plumbed-in appliances
- roofs and gutters for damaged tiles, obstructions or blockages
- walls and ceilings for blistering, water marks or stains
- changes in water pressure or water charges, which may indicate a concealed leak
- balconies and other areas where water needs to drain away.
Residents should avoid leaving baths, sinks or other water sources unattended. Turn off the water when leaving home for an extended period.
Responsibility for repairs depends on the boundaries shown on the scheme’s survey plan and the regulation module. The body corporate must maintain common property in good and structurally sound condition, while an owner must maintain their lot. An owner may be liable when poor lot maintenance causes damage to another lot or common property. A body corporate may also be liable when poor common-property maintenance causes damage to a lot.
If you find a leak, report it promptly and keep records of what was observed and when. Our guide to managing water leaks in a strata property provides further practical information.
How can your building prepare for storms and flooding?
Storms and flooding can damage roofs, gutters, balconies, windows, common property and building services. The body corporate can also consider whether the building needs additional flood insurance. A motion to take out this extra building insurance must be passed by ordinary resolution at a general meeting.
Before severe weather, the committee and residents can:
- clear gutters, drains and balconies so rainwater can flow away
- keep contents and appliances away from areas at risk of flooding
- trim back trees and branches that may damage buildings or shared areas
- check that emergency contact details are current
- monitor local weather reports
- check that neighbours and tenants know what to do.
Queensland’s Get Ready guidance recommends understanding your local risk, preparing a household emergency plan and packing an emergency kit.
After an event, safety comes first. Avoid entering unsafe areas and record damage when it is safe to do so. A maintenance issue, storm event or flood may not produce the same insurance outcome in every scheme. Check the body corporate’s current policy before making decisions about repairs or a claim.
How can common-property hazards lead to claims?
Accidental damage can arise when shared areas are obstructed, poorly maintained or unsafe. Keeping corridors, walkways, gardens, car parks and other common areas clean and clear can reduce hazards for residents, visitors and tradespeople.
Bodies corporate should identify safety concerns and take reasonable action to reduce risks. Useful steps may include:
- keeping traffic areas free from stored items and trip hazards
- checking lighting in shared areas
- repairing damaged paths, stairs and handrails
- taking care when digging near gardens, pipes or infrastructure
- using professional tradespeople for maintenance and installations
- recording reports, inspections and completed repairs.
The body corporate and lot owners share maintenance responsibilities, but those responsibilities are not always the same. Check the survey plan and regulation module before deciding who should arrange or pay for work.
The body corporate must insure common property and body corporate assets for their full replacement value. Public risk insurance must also cover the common property and body corporate assets where it is practical to have that cover.
These measures can reduce hazards, but they cannot guarantee that an incident or claim will not occur. Report concerns to the body corporate manager or committee so they can be assessed and actioned.
What fire risks should apartment buildings manage?
Fire can spread quickly and cause extensive damage to a building. Faulty wiring, ageing appliances, blocked lint filters, cooking, candles, incense and smoking can all contribute to residential fires.
Residents should:
- clean lint filters regularly
- avoid leaving cooking unattended
- keep candles and incense away from materials that can burn
- report faulty wiring, power outlets or appliances promptly
- follow building fire safety procedures
- keep access to exits and fire equipment clear.
Apartment buildings may have prescribed fire safety installations. These installations must be maintained in line with the Queensland Development Code requirements, with regular testing and records to help ensure they remain effective.
For multi-unit residential buildings, the body corporate should determine who is authorised to sign the yearly occupier’s statement, arrange appropriate maintenance and keep maintenance records for 2 years with the building’s fire safety management plan.
The body corporate should also respond quickly to reports of electrical or fire safety issues. Engaging an appropriately licensed person for inspections and maintenance can help the committee manage these obligations.
How can a body corporate reduce theft and security risks?
Common-area items such as barbecues, gardening tools and gym equipment may attract thieves. Shared garages, storage areas and entrances can also be vulnerable when access is not controlled.
Residents and committees can:
- avoid propping open doors
- wait for shared garage doors to close before leaving
- take care when allowing unfamiliar people into the building
- introduce themselves to neighbours and tenants
- consider smart locks for shared areas
- consider intercoms, motion lights or security cameras
- keep common areas tidy so unusual activity is easier to notice.
Security improvements may support safer shared spaces, but they do not guarantee that theft or malicious damage will be prevented. They also do not automatically reduce an insurance premium.
If an incident occurs, check the policy before assuming that stolen items, broken doors, windows or replacement locks will be covered. The policy wording, ownership of the damaged property and circumstances of the incident may all matter.
What should you check before making an insurance claim?
Start by identifying what was damaged and where it is located. A problem affecting common property, a body corporate asset, a shared building or an individual lot may involve different responsibilities.
The body corporate must have public risk insurance and insurance for common property and body corporate assets. In most cases, it must also insure each building containing a lot, although the requirements differ between building format and standard format plans.
Before making a claim, the committee or body corporate manager should:
- take photographs and record the date and circumstances
- take reasonable steps to prevent further damage
- keep invoices, reports and records of urgent work
- check the current policy, limits and excess
- confirm whether the damaged item is common property, a lot or a body corporate asset
- notify the insurer or broker using the required process
- avoid assuming that repairs or replacement will be covered.
An excess is the amount paid by the body corporate or an owner towards a claim. Who pays it depends on the circumstances. For example, an owner would normally pay where a lot is damaged by water from a leak in that lot, while the body corporate may pay where poor common-property maintenance caused the damage.
Owners must tell the body corporate about improvements or changes that could affect the insurance premium, including improvements to a lot or common property for the benefit of a lot. If this information is not provided, the owner may have to pay repair or replacement costs that are not covered by insurance.
Common insurance risks include water, storms, fire, accidental damage and theft. Regular maintenance, preparation and prompt reporting can help reduce damage.
If you need help reviewing your body corporate’s insurance information or maintenance responsibilities, contact our team at reception@stratacare.com.au.
