Insurance Insights
Sectional Title Guide

Burst pipes and water damage in sectional title schemes

A practical guide to burst pipe and water damage claims in sectional title schemes, including owner responsibility, body corporate responsibility and insurance documentation.

Burst pipes and water damage can quickly create confusion in sectional title schemes. The first question is usually: is this the owner’s responsibility, the body corporate’s responsibility, or an insurance claim?

The answer depends on where the pipe is located, which area it serves, what caused the damage, and what the policy says.

Important: This article is general guidance. The scheme plans, conduct rules, management rules and policy wording must be checked.

Start with location and function

Trustees should ask where the pipe is located and who it serves. A pipe that serves one section may be treated differently from a common property pipe serving multiple sections.

Owner responsibility

Owners are usually responsible for maintaining their sections. If a pipe forms part of a section or serves only that section, the owner may have maintenance or excess responsibility.

Body corporate responsibility

The body corporate may be responsible where the pipe forms part of common property or shared infrastructure. This can be more complicated where pipes run through walls, ducts or ceilings.

Insurance cover

Insurance may respond to sudden and accidental water damage, but not necessarily to the defective pipe itself, gradual damage, wear and tear or maintenance failures. The policy wording is critical.

Documents to collect

  • Photos of the leak source and damage.
  • Plumber’s report explaining the cause.
  • Repair quote or invoice.
  • Date and time the leak was discovered.
  • Details of which units or common areas were affected.
  • Any previous maintenance history.

Common questions

Can an owner claim for damage caused by another owner’s pipe?

Possibly, but the insurer, policy wording and responsibility position must be checked. Trustees should avoid confirming liability too early.

Does insurance pay for the broken pipe?

Sometimes policies cover resultant damage but not the defective item itself, especially if the problem is wear and tear or maintenance-related.

What if the water damage affects common property?

The body corporate should document the damage and check whether the claim falls under the scheme policy.

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