Victory for Homeowner in Insurance Dispute

1

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

WFI Insurance Joins Forces with Farmsafe Australia to Boost Farm Safety Standards

16 Dec 2025: Paige Estritori

In a significant move to enhance safety within the Australian agricultural sector, WFI Insurance has announced a partnership with Farmsafe Australia. This collaboration is designed to raise awareness about farming hazards and advocate for the adoption of safer work practices among farmers. - read more

Argis Underwriting Partners with Pacific International to Expand Farm Insurance Offerings

16 Dec 2025: Paige Estritori

Argis Underwriting has announced a new partnership with Newcastle-based Pacific International Insurance, enabling the company to resume offering farm insurance coverage across Australia. This development comes after Argis ceased providing new business and renewal terms on its Farm Extra Insurance in April, following the conclusion of a five-year arrangement with HDI Global Specialty. - read more

WFI Insurance Reports Significant Decline in Farm Liability Claims

16 Dec 2025: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

WFI Insurance Rewards Sustainable Farming with Premium Discounts

08 Dec 2025: Paige Estritori

In a significant move towards promoting sustainable agriculture, WFI Insurance has announced a new initiative offering premium discounts to farmers who obtain AgCarE certification. This program, developed by AgForce, aims to recognise and reward farmers implementing eco-friendly practices on their properties. - read more

IAG and Ag Guard Forge Partnership to Elevate Crop Insurance for Australian Farmers

08 Dec 2025: Paige Estritori

In a significant development for Australia's agricultural sector, Insurance Australia Group (IAG) has announced a strategic partnership with Ag Guard, a specialist rural underwriting agency. This collaboration will see Ag Guard managing the underwriting for IAG-owned CGU and WFI's crop insurance portfolios starting June next year. - read more

AFCA Mandates Higher Payout for Farmers in Flood Damage Dispute

08 Dec 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a farming group, mandating that insurer Achmea increase its payout for flood damage claims. This decision underscores the critical importance of thorough and expert assessments in the insurance claims process. - read more

Click for more Insurance News