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Theoretically the system is set up to do this but in practice its complex and takes time. Insurers and lawyers can have a field day over liability. Was it the
by twelvechairs 8y ago
Theoretically the system is set up to do this but in practice its complex and takes time.
Insurers and lawyers can have a field day over liability. Was it the builders fault? The structural engineer? The architect? Or caused after construction? All of these will have their own insurance and all will avoid paying unless its clear to a court that its their liability.
Of course major issues like this dont happen so often so theres little to reference. But for example there was a recent case where the owners corporration insurance refused to pay for a roof flying off after a storm because in their view poor construction was to blame. Its a lot of time for residents to be without a home while these things are sorted
https://www.smh.com.au/national/nsw/insurer-rejects-stormdamaged-lidcombe-apartment-building-claim-because-of-numerous-defects-20160408-go1kz5.html https://www.smh.com.au/national/nsw/insurer-rejects-stormdam...
- jpatokal 8y agoIn Sydney it's also common for builders/management companies/etc to declare bankruptcy to deflect lawsuits etc, then set up a new company to continue business.
- hornetblack 8y agoThey also don't have to finish everything in the building. Moved into a building where the construction company did this, many things were unfinished. Apparently didn't completely pay the workers, so they just took stuff when they left.
- cyphar 8y ago> It's a lot of time for residents to be without a home while these things are sorted. Though if you're renting, you can break your lease without fees and get your bond back if the building is no longer classified as being safe to live in (at least that's the NSW rental laws). But of course if you're renting then home insurance isn't your problem (usually you'd just have contents insurance).