Court decision shows importance of property insurance on new apartments

A court decision might mean that apartment owners are liable for the repair costs of units other than their own – a situation that only serves to underscore the importance of purchasing property insurance on a new apartment. Prominent law firm MinterEllisonRuddWatts recently wrote about Body Corporate S73368 v Otway – a court case of an apartment building where first floor units have large decks that serve as roofs for ground floor retail units and the pedestrian walkway below. When the waterproof membrane on the decks failed, water leaked to the apartments below, leaving building administrators to argue that deck owners should foot the bill for those repairs.