Ceiling plaster delamination collapse in a sectional title section: Is it claimable?

A concerning incident was recently raised on social media after a substantial layer of plaster reportedly separated from a concrete ceiling slab and collapsed into a kitchen area within a sectional title section.

According to the owner, the collapse caused extensive damage inside the section and the Body Corporate arranged for the initial clean-up shortly thereafter. The owner also raised concerns about whether the section remained safe to occupy and whether alternative accommodation should be provided.

Could this be an insurance claim?

The short answer is that damages may well be claimable, at least in part.

Much depends on the actual cause of the plaster delamination and the specific wording of the scheme’s buildings insurance policy.

In many sectional title insurance policies, an important distinction is made between the actual failed component itself and the resulting damage caused by that failure.

For example, if the plaster delaminated because of long-term deterioration, defective workmanship, ongoing moisture ingress or a lack of maintenance over time, the insurer may decline the cost of repairing the actual plaster component itself.

However, where the collapse occurs suddenly and causes identifiable damage to other parts of the section, the resulting damage may still potentially be claimable.

In a scenario like this, that could include damage to kitchen cupboards, counters, flooring, appliances and other finishes damaged by the falling plaster and debris.

This is why determining the actual cause of the collapse becomes critically important.

Why insurers focus so heavily on cause

When incidents like this occur, insurers will typically investigate whether the damage resulted from a sudden and unforeseen event or whether there were underlying maintenance or deterioration issues that developed over time.

The insurer may therefore appoint a loss adjuster, contractor or even a structural engineer to investigate matters further.

The findings can materially affect whether the claim is accepted in full, partially accepted, or declined altogether.

What about alternative accommodation?

This is often where expectations and policy wording can differ quite significantly.

Many owners assume that once substantial damage occurs, alternative accommodation automatically becomes the responsibility of either the insurer or the body corporate.

In reality, most sectional title policies only provide alternative accommodation or loss of rent benefits where there is an insured event, and the section is regarded as uninhabitable as a direct result thereof.

Importantly, insurers are often quite strict when interpreting what qualifies as “uninhabitable.”

A section being untidy, partially damaged or inconvenient to occupy does not necessarily mean it qualifies for alternative accommodation benefits.

That determination is usually made by the insurer, their appointed loss adjuster and, in some cases, a structural engineer or other professional expert, not simply by the owner or body corporate alone.

The body corporate’s role

At the very least, the body corporate should ensure that the matter is properly investigated and that any immediate safety concerns are appropriately addressed.

Where there is concern about broader structural integrity or further delamination risk, obtaining professional assessment may be prudent both from a safety and liability perspective.

Final thoughts

Incidents involving plaster delamination collapse can be extremely stressful and unsettling for owners and occupants alike.

In most cases, the outcome will ultimately depend on:

• the cause of the failure,
• the wording of the insurance policy,
• the extent of the damage,
• and whether the damage resulted from an insured peril.

Owners should report incidents promptly, preserve photographs and evidence where possible, and engage with the scheme’s insurance advisor or broker as early as possible.