Geysers usually ‘burst’ due to simple wear and tear and corrosion is sped up by lack of maintenance. It then starts to wear down due to rust until it is eventually compromised. If the geyser isn’t maintained, it won’t be long before it needs to be replaced. Generally, the insurance is covered by the body corporate, but it is very important that the owner maintain the geyser.
Trustees should communicate with all the owners in the scheme and ensure that the owners know the policy schedule with all insurance details and the procedures to follow in the case of a burst geyser. While claims should preferably go through the trustees/managing agents there might be times when it is an emergency, and the owner cannot get hold of an agent/trustee to get the problem sorted out. It would then help the owner if he had all the insurance details.
The resulting damage is usually covered provided there has been no negligence and that the geyser is compliant, which a plumbing compliance certificate would prove. The insurance would also cover the damage to the unit below or surrounding the unit. Owners must make sure when getting quotes to replace the geyser that it does not cost more than what the insurance covers or the extra will come out of their own pocket. Prescribed Management Rule 68 (7) says that if the insurance company does not cover the repair of a geyser, the owner is responsible for the maintenance of it. In some schemes the geysers are excluded from the overall building insurance cover, so owners must be aware of this and check with their body corporate. If this is the case, the owners are responsible for taking out the appropriate insurance for their units.