Farm Insurance :: News
SHARE

Share this news item!

Victory for Homeowner in Insurance Dispute

Victory for Homeowner in Insurance Dispute

In a compelling reversal, a homeowner emerged victorious in a disagreement over an insurance claim for malicious damage to her residence, prompting significant compensation from the insurer.
Chubb Insurance initially resolved to honor a claim just partly, covering a meager sum of $2,431 for specific damages.
However, it declined to acknowledge other necessary repairs, attributing them to earlier existing damage ostensibly not enclosed by the policy.

This stance was later annulled by the Australian Financial Complaints Authority (AFCA), which not only contested the insurer’s analysis but also highlighted its failure to document its assertions, leading to undue procrastination.

The dispute originated when the homeowner filed for claims in December 2022 subsequent to discovering her property profoundly vandalized by a former tenant. The cost of restorations was quoted at $15,873, evidence of which was presented via quotations and valid tax invoices. Chubb recognized the legitimacy of repair costs for the fire equipment and flooring, but denied responsibility for other damages, including those incurred on the property’s door, suggesting these were all covered by another contents policy. The homeowner, however, maintained the damages were related to the tenant.

Upon examining the records, AFCA contravened the insurer's claim that a more appropriate coverage applied. Nevertheless, in one scenario involving damage to a door, AFCA concurred with information suggesting the owner’s prior knowledge, hence her need to lodge it as a separate claim. Chubb insisted that a status report presented signs of wear and tear not inclusive in the policy coverage, yet neglected to provide said report as evidence, thereby weakening their argument.

The judgment articulated by AFCA indicated that the insurer had ample opportunities to exhibit pertinent documentation, especially since they were warned of potential unfavorable inferences being drawn if they failed to proffer the requested information within the specified timeframe. Chubb’s omission led to reliance on the homeowner's pre-tenancy condition report, which AFCA found convincingly didn't show the alleged pre-existing damage.

The tension culminated in a mandate requiring Chubb to remit $12,628 to the homeowner, after the policy excess deduction. Moreover, for the troubles wrought by delayed processes, less-than-adequate claims management, and lackluster communication, an added compensation of $3,500 was awarded to the claimant. This recompense was attributed to the significant impact on the homeowner, circumventing her reasonable expectations and encroaching on her serenity and overall wellbeing.

AFCA's determination underscored that the industry's standard of conduct was significantly breached, resulting in excessive delay and marked inconvenience that entangled the homeowner’s peace of mind and rightfully due claim resolution process.

Published:Saturday, 10th Feb 2024
Source: Paige Estritori

Share this news item:

Insurance News

Rural Customer Gains Justice After Settlement on Botched Roof Job Rural Customer Gains Justice After Settlement on Botched Roof Job
01 Mar 2024: .Paige Estritori

In an exemplary case of customer advocacy, a financial broker's persistence has facilitated a significant compensation for a rural policyholder following subpar roof repairs. Following a natural calamity in 2018, the client submitted a claim to have their hail-damaged roof fixed, a service managed by the insurer HDI Global Specialty. Unfortunately, the attempted repairs left much to be desired, with a misuse of roofing materials raising concerns over both appearance and functionality. - read more
ClearView Marks a New Era with Life Insurance Profits Up by a Third ClearView Marks a New Era with Life Insurance Profits Up by a Third
01 Mar 2024: .Paige Estritori

Following a dynamic transition focused on its life insurance sector, ClearView Wealth celebrates a significant profit increase. This shift in business strategy is reflected in a remarkable 32% rise in life insurance underwriting profits, reaching $19.4 million. The wholesale transformation from a multi-faceted financial entity into a life insurance-centric firm emerges successful with total underlying earnings after tax up 37% to $17.3 million. - read more
Challenges Obscure Path for Bequeathing Super to Charities Challenges Obscure Path for Bequeathing Super to Charities
01 Mar 2024: .Paige Estritori

Superannuation funds have raised concerns over proposals recommending that individuals be enabled to allocate their superannuation death benefits to charities. Industry voices argue that this would complicate operations and incur additional costs - burdens that would ultimately fall on members. - read more
Victorian Court Sets Legal Cost Boundaries in IAG Class Action Suit Victorian Court Sets Legal Cost Boundaries in IAG Class Action Suit
01 Mar 2024: .Paige Estritori

A crucial court ruling in the Victorian Supreme Court has provided a significant directive regarding legal expenses in a class action facing Insurance Australia Group (IAG). Justice Lisa Nichols has endorsed a 30 percent limit on the fees lawyers can charge as part of the payout, ensuring a bigger portion of settlements or awards is kept with the affected shareholders. - read more
Local Business Triumphs Over Insurer in Power Outage Dispute Local Business Triumphs Over Insurer in Power Outage Dispute
29 Feb 2024: .Paige Estritori

In a recent conflict, a small-business butcher has emerged victorious in a claims spat concerning the spoilage of goods and profit disruption, linked to a power cut incident amidst catastrophic flooding. - read more
Superannuation Changes Shrink Insurance Coverage by Over a Third Superannuation Changes Shrink Insurance Coverage by Over a Third
28 Feb 2024: .Paige Estritori

Recent findings uncover the significant consequences that successive government reforms, most notably the Coalition's initiatives aimed at fortifying superannuation, have had on Australians' insurance policies held within superannuation funds. - read more



Farm Insurance Articles

How to Save Money on Your Farming Insurance Premiums How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more
Livestock Insurance for Aussie Farmers: What You Need to Know Livestock Insurance for Aussie Farmers: What You Need to Know
Livestock farming is a significant part of the Australian agriculture industry. As with any business, farmers face numerous risks such as disease, death, theft or extreme weather events, which could cause damage or loss to their livestock assets. Livestock insurance provides cover against these risks, ensuring that farmers are financially protected from any potential financial losses, which could devastate their livelihoods. - read more
What You Need to Know About Crop Insurance for Your Farm What You Need to Know About Crop Insurance for Your Farm
Farming is a risky business. As a farmer, you are at the mercy of the weather, pests, and other challenges that can threaten your crops and your livelihood. That’s where crop insurance comes in. Crop insurance can provide financial protection in case your crops are damaged or destroyed, allowing you to recover from losses and move forward with your farm business. - read more
Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families
Welcome to our comprehensive guide on navigating farm succession for rural Australian families. The journey of passing on a family farm from one generation to the next is both a critical and challenging milestone. Recognizing that every farm has its unique story and set of circumstances is fundamental to the process. - read more
Agribusiness Risk: Liability Issues Facing Australian Farmers Today Agribusiness Risk: Liability Issues Facing Australian Farmers Today
The agricultural sector in Australia carves a significant portion of the country's economy, contributing to its GDP and providing employment across rural and suburban areas. Thus, navigating the complexities of agribusiness is not just a matter of crop cultivation and livestock management, but also of understanding the intricate web of liability risks that come with the terrain. - read more
The importance of income protection insurance for hobby farmers The importance of income protection insurance for hobby farmers
As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more

Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:

Knowledgebase
Insurance Deductible:
That part of an insurance claim that must be paid by an insured person before the the balance is paid by the insurer.