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Understanding the cause of claims in strata insurance

Updated: Dec 19, 2023

When lodging a claim for your strata insurance, it is important to include information about the probable cause of the damage.

The causes of strata insurance claims can vary widely, encompassing a range of incidents and circumstances. Some examples include:

Water Damage caused by:

  • Burst pipes or plumbing leaks

  • Roof leaks

  • Flooding due to heavy rain or storms

Fire and Smoke Damage caused by:

  • Electrical fires

  • Appliance malfunctions

  • Accidental fires

Impact Damage caused by:

  • Vehicle collisions with the building

  • Falling trees or branches

Liability Claims caused by:

  • Personal injury claims on common property

  • Damage caused by a resident to common areas

Why is it important to understand and communicate the cause of the claim?

When arranging a contractor for a claim, it is important to ask them to include the probable cause of the damage in conjunction with a detailed scope of works including materials and measurements on their quotation or invoice.

Taking one of these examples above, water damage, caused by a hot water system rupture. Knowing all the facts will assist the insurer to finalise the claim in a timely manner but also ensure that the claim covers everything that the insured is entitled to under the policy.

In the case of hot water system pipe rupture, if policy will cover the damaged areas (unless it has been specifically excluded) including walls, floors and other damage to common areas and the water damage affected any other units. However, it may or may not cover the actual system itself, depending on what caused the damage in the first place. Experience tells us that damage to a hot water system is often caused by age, wear/tear, rust or other factors which may not be covered under the policy.

Understanding these various causes allows property owners, insurers, and contractors to address potential risks, implement preventative measures, and navigate the claims process more effectively.

It's essential to document and communicate the specifics of each incident to ensure a smoother resolution during the claims process.

Regular maintenance and other risk mitigation measures can help reduce the likelihood of claims and associated costs. A comprehensive strata insurance policy provides peace of mind to owners in the event of a claim, owners may also wish to consider Contents or Landlords insurance for strata to protect any damage caused to contents or personal items not covered by strata insurance.

CHU make it easy to lodge a claim, you can do so 24/7 via CHU’s website or contact our claims team.


Disclaimer:  Insurance issued by QBE Insurance (Australia) Limited ABN 78 003 191 035 and distributed by CHU Underwriting Agencies Pty Ltd ABN 18 001 580 070 AFSL 243261. Any advice in this article is general in nature and does not take account of your personal objectives, financial situation and needs. Please read the relevant Product Disclosure Statement (‘PDS’), Financial Services Guide (‘FSG’), and the Target Market Determination (‘TMD’) which can be viewed at or obtained by contacting CHU directly. CHU Services Pty Ltd t/as CHU Inspect (ABN 99 616 086 269).

This article was brought to you by CHU Underwriting Agencies


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