A camper trailer owner who claimed for water and mould damage will be covered after her insurer failed to show her policy’s wear and tear exclusions applied.  

The claimant attributed the damage to a storm in November 2023, saying severe wind blew the cover off the camper and caused water to enter.  

She said she had used the camper earlier that month, when there was no visible mould or water damage. She did not use it again until April last year, when she discovered the problem. 

But RAA Insurance said the camper’s seals had deteriorated. Its policy excluded losses caused by “depreciation, wear and tear, rust, corrosion ... which has occurred over a period of time”, and specifically “loss or damage as a result of deteriorated seals and joints which has occurred over a number of incidents”.  

In a dispute ruling, the Australian Financial Complaints Authority notes the insurer’s assessor “stated that the seals are deteriorated and has provided multiple images in support ... The images show gaps where parts of the seals do not sit tight with the body of the camper.”  

But it does not accept the images or other findings confirm the seals had deteriorated, pointing to a lack of clear signs such as holes or cracking.  

“I accept that deterioration is a gradual process. However, the information provided by the insurer is not compelling in establishing the seals are deteriorated or that is the reason the water is able to enter the camper,” an AFCA ombudsman said.  

“I am not persuaded the mere reference to deterioration without compelling information to support it is enough to establish it is the proximate cause of the loss.  

“As the onus is on the insurer to establish the exclusion, it would need to provide persuasive information detailing how the seals are deteriorated and why this allowed the ingress rather than something else.”  

The insurer has been told to accept the claim and appoint a repairer. If it cash settles, it must pay a 15% uplift to the repair quote.  

See the ruling here.