Who is Responsible for Water Damage in Strata Properties?

In strata, responsibility for water damage depends on the leak’s source. If the leak begins inside a lot, the lot owner pays. If the source is from common property, the Owners Corporation pays and must organise repairs. NSW law requires the Owners Corporation to maintain and keep common property in good condition.

This guide explains strata water damage and who is responsible in specific instances, helping owners understand where to draw the line between individual and shared obligations.

Water Damage from Common Property

Common property covers shared and structural elements outside a single lot’s boundaries. This includes boundary and external walls, slabs and shared floors, roofs, gutters, risers, service shafts, foyers, lifts and other shared infrastructure. The Owners Corporation maintains and pays for common property repairs. Meanwhile, owners are responsible for repairing and maintaining items inside their own lot.

So, does strata cover water damage? Yes, if the leak starts in common property, including building repairs, subject to policy terms and proof of cause.

Burst Pipes in Walls or Under Flooring

If a pipe is in a shared or structural location, including boundary walls, concrete floors between levels, vertical risers, service shafts, common corridors or plant rooms, the Owners Corporation is responsible for repairing the damage.

If a pipe sits fully within a lot and services only that lot, the lot owner is responsible. Within-lot pipes include mixer tap hoses, dishwasher hoses, washing machine hoses and under-sink traps and internal lines that serve only that lot.

Ceilings, Waterproofing and Gutters

Ceilings

Are water leaks covered by strata, particularly those caused by ceiling damage? It depends on the source and policy,  but damage from sudden events within common property, such as burst pipes or storm ingress, will generally fall under strata responsibility. However, if an owner’s changes caused the issue, the owner may be responsible. Examples include DIY penetration of a slab, removal of waterproofing during renovations or failure to maintain in-lot fittings like flexible hoses.

Waterproofing

Waterproofing membranes installed as part of the building fabric are generally treated as common property, so maintenance and repair fall under the responsibility of the Owners Corporation.

Gutters and Roofs

Roof coverings, flashings, downpipes serving multiple lots and gutters are common property, meaning the Owners Corporation must maintain them. Failure to maintain these areas can lead to internal damage that the strata may still need to address.

For effective planning and preventative care, refer to our guide to strata maintenance.

What Does Strata Building Insurance Cover?

If water damage results from an insured event within common property, such as a burst pipe or stormwater ingress, your strata insurance for water damage will cover it. This covers repairs to the building structure and shared areas, but not personal belongings inside the lot. Owners should have contents insurance for these items. Meanwhile, landlords may also need landlord coverage for the property. Always check your policy wording to see what is and isn’t included.

Structure

Strata policies typically insure the building and structural components. Examples include boundary walls, shared floors and ceilings, foundations, roofs, gutters, common service infrastructure and permanent fixtures like built-in cabinetry or bathroom fittings that are part of the building. Coverage specifics depend on the policy.

Personal Items

Strata insurance does not cover contents inside a lot. These include furniture, rugs, clothing, electronics, whitegoods, books and décor. To reiterate, owners should maintain contents coverage for personal belongings.

What’s Not Covered

Insurers cover sudden and unexpected damage, not problems that develop over time from wear, neglect or ignored defects. Claims can be declined if the water damage comes from an issue that wasn’t properly maintained or repaired.

Owners are usually responsible for internal non-structural items such as:

• Internal walls and paint
• Floor finishes
• Lights and power points
• Blinds and curtains
• Kitchen appliances like dishwashers, ovens and fridges
• Bathroom fixtures like shower screens, basins and taps
• In-lot plumbing that services only their lot

Leaks from in-lot appliances or burst flexible hoses should typically be resolved by the owner.

Read more in Netstrata’s guide to strata insurance challenges and strategies.

What Should You if You Spot Water Damage in a Strata Property?

Upon detecting any signs of water damage, act quickly and keep records. Here are simple steps to follow:

Step 1: Contain the problem.

Turn off the water at the mains if possible. Move furniture and electrical items away from wet areas to reduce risk.

Step 2: Record evidence.

Take dated photos and videos. Keep receipts for urgent mitigation.

Step 3: Notify in writing.

Report to your strata manager or community management committee right away, noting the time, date and location.  Keep a paper trail of all communication so there’s a clear record of when the issues were reported and what actions were taken.

Step 4: Emergency repairs.

Where there is an immediate risk to safety or further damage, urgent make-safe works may proceed. Keep all documentation for insurers.

Step 5: File insurance or reimbursement documents.

Lodge through the appropriate policyholder based on the source and damage type. Include photos, reports and invoices.

Step 6: Clarify responsibility.

Determine whether the source is common property or within a lot. Use plumber reports to locate the source. Clarifying the source early also helps determine strata responsibility for water damage, ensuring claims are lodged with the right insurer and delays are avoided.

Step 7: Escalation.

If the Owners Corporation does not act on the issue, seek NSW Fair Trading mediation, then apply to the New South Wales Civil and Administrative Tribunal (NCAT) if unresolved.

Netstrata Helps Owners and Committees Handle Water Damage Without the Stress

A single point of contact reduces confusion and saves time for the committee and lot owners. Netstrata supports committees and owners with governance-first guidance and practical coordination. The team can help organise trades for urgent make-safes and repairs, liaise with brokers or insurers and keep communication clear so decisions materialise quickly. Explore Netstrata’s strata management services.

Frequently Asked Questions

How do you prove strata water damage?

Gather photos and videos, obtain a plumber’s report identifying the source and keep written records of all notices to the strata manager or committee. Keep invoices and any make-safe reports for insurers. Proper documentation is crucial for proving strata water damage.

Does strata cover damage to plumbing?

Sometimes. Strata generally covers building damage and common property infrastructure. Plumbing located within common property is a strata responsibility. On the other hand, plumbing that sits fully within and serves only one lot is usually the owner’s responsibility.

How do you maximise recovery on a strata water damage claim?

Report the issue as soon as possible, keep detailed records and submit your claim to the correct insurer. Include plumber or trade reports, photos, invoices and a clear timeline of events. If responsibility is confirmed but repairs are delayed, you can seek help through NSW Fair Trading mediation or escalate to NCAT.

What is considered accidental water damage in strata property?

Sudden unexpected events such as a burst common pipe, storm water ingress or an appliance failure can be considered accidental under many policies. Gradual leaks and poor maintenance are often not.

How much water is considered water damage in strata property?

Water damage is determined through its impact rather than the water volume. Even a slow or minor leak can damage ceilings, walls or flooring and be classed as water damage under most strata policies. If materials are stained, swollen, mouldy or weakened, it’s likely already considered water damage and should be reported promptly.