Strata management company has delayed my water damage claims for two months. What do I do?

Back in August, my toilet overflowed and damaged the upstairs of my townhome, the stairs and the floor/ceiling in the kitchen. 

I called a restoration company who performed some emergency services. I contacted my own insurance company and the strata to notify them of the loss. 

The property manager of my strata management company came around to look at and assess the damage- and sent the restoration company away. He said he would arrange a contractor to come around, give an estimate and get work started. Note:

1) My own insurance covers up to $10,000 worth of water damage with a $1000 deductible of my own. Anything over the $10,000 is to be billed to the strata insurance. 

2) House contains asbestos.

3) The strata was insistent on keeping the claim under $10,000.

It took 4 weeks for the stratas contractor to get into my house and give an estimate. It then took another two weeks for said contractor to email a quote to my insurance company. At this time, my adjuster denied it right away as it was totally incomplete and had no mandatory asbestos testing in there. When trying to get a hold of this contractor to re-do the quote, his phone went off and is no longer able to be contacted. 

My insurance adjuster/myself brought the restoration company back. They are fantastic and can get things going right away. My strata has said I can't go forward with them- they determine who does the work and want more quotes done by "their own contractors". 

Can they do this?

1 Answer

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  • 4 weeks ago

    So, hold on a second here. Do you own your unit or are you a renter?

    If you own, are we talking about a condo/townhouse/etc? At what point is it your property vs common property? Usually, its walls or studs in that you would own, so strata wouldn't have anything to do with the portions you own.

    This is important due to the insurance implications. I don't see why your policy would ever pay for property not your own and I don't see how Strata would be on the hook for the excess of your insured loss.

    Start by stating who owns what property and we can proceed. If you rent, your renters policy should only be paying for your stuff...nothing else...period.

    If YOUR property is damaged, you pay for repairs, you don't even need to keep strata in the loop. If their property, you shouldn't be paying anything to resolve. If a little of both, it gets trickier...but we need to know more.

    EDIT - Just noticed you say townhome...so, why is the management company involved? Assuming you own the property, Strata should not be involved...

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