When Storms Strike: Managing Multiple Storm Damage Claims in Sectional Title Schemes

Storm damage claims in sectional title represents one of the most challenging scenarios for sectional title schemes and their insurance policies. When severe weather impacts multiple units simultaneously, the claims process can quickly become overwhelming, leaving owners frustrated and unsure about their rights and the coverage they can expect.

The Reality of Storm Claims

Storms rarely strike at convenient times. They typically occur during evenings, weekends, public holidays, or summer vacation periods when managing agents and insurance advisors may not be immediately available. By the time claims are reported and loss adjusters dispatched to assess damage, several days may have passed. This delay, while understandable, marks the beginning of what many owners experience as a frustratingly slow process.

The progression from damage assessment through contractor quotes, loss adjuster reports, and insurer approval can feel interminable when you're living with a leaking roof or damaged ceiling. Then, just when approval finally arrives, the reinstatement process begins with its own set of challenges: contractor availability, material sourcing, and coordination across multiple affected units.

The Value of Preparation

Schemes that weather storm claims most successfully share common characteristics: sound management structures and well-informed owners. Having a documented claims procedure that owners understand before disaster strikes makes an enormous difference. Owners should know exactly who to contact, what information to provide, and what immediate steps they can take to prevent further damage.

Working with brokers who specialise in community scheme insurance and possess the technology to streamline claims reporting ensures faster response times. While no one expects a "pleasant" storm claim experience, modern technology, allowing instant damage reporting and rapid loss adjuster deployment, significantly reduces the burden on affected owners.

Common Pitfalls That Delay or Complicate Claims

Understanding what can go wrong helps schemes avoid these issues:

Pre-Existing Damage Claims: One of the most problematic issues occurs when owners attempt to claim for old damage during a storm event. Insurers can spot this, and such attempts trigger closer scrutiny of all claims from that scheme, delaying legitimate claims and potentially affecting all owners. Storm damage must be demonstrably fresh and directly attributable to the specific weather event.

Maintenance-Related Rejections: Poorly maintained windows with loose or missing putty, ageing wooden pergolas with visible rot, or neglected carports often result in claim rejections. Insurers distinguish between storm damage and failure due to deferred maintenance. For example, a ceiling that collapses clearly due to storm forces will be covered, but ifthe investigation reveals the ceiling was poorly installed with inadequate support, the claim may be rejected.

Roofing Issues: Pre-existing roofing failures that were left unattended create particular complications. While the insurer will cover damage directly caused by the storm, they won't cover resulting damage from wear and tear or maintenance failures. This distinction can affect secondary damage claims, such as water damage to interiors.

Vacant Unit Complications: Unoccupied sections present heightened risk, especially when roof damage goes unnoticed until water ingress causes significant interior damage. Many insurers apply cover restrictions or exclusions after 30 days of vacancy, making it crucial for trustees to be aware of empty units and ensure they're properly secured and regularly inspected.

Age-Related Depreciation: Materials on carports, awnings, or shade structures over ten years old typically receive reduced settlement values—often just 50% of replacement cost. This reflects the reduced lifespan value of ageing materials and can surprise owners expecting full replacement.

Vehicle Damage Limitations: An important cover gap that often surprises scheme members: damage to vehicles caused by collapsing carports is not covered under the scheme's buildings policy. Vehicle owners need their own comprehensive motor insurance to cover such damage.

Setting Realistic Expectations

One of the most valuable services schemes can provide is education. When owners understand policy terms before claims occur, their expectations align with reality. This reduces disputes, speeds up the claims process, and minimises the unpleasantness that can arise from misunderstandings during already stressful situations.

Trustees should make policy summaries available through newsletters or email communications, highlighting what is and isn't covered. Simple explainers about common claim scenarios help owners understand why certain claims are approved while others are declined.

The Path to Faster Resolution

While weather events remain beyond anyone's control, schemes can control their preparedness. Regular maintenance schedules, proper documentation of the property's condition, clear communication channels, and owner education all contribute to smoother claim experiences. Combined with responsive insurance support, these elements transform a potentially nightmare scenario into a manageable, albeit challenging, situation that the scheme navigates successfully together.