The financial services ombudsman has told Suncorp to pay the maximum amount of non-financial loss compensation to a homeowner after its poor handling of her storm claim led to delays and further damage.

After lodging a claim in December 2023, the property owner raised concerns about the quality and safety of repair work undertaken by Suncorp’s appointed builder, including that some workers attended her home without notice, were unlicensed and did a bad job.

The insurer later assigned another builder to address the concerns and agreed to cash settle certain parts of the claim.

The property was then affected by Cyclone Alfred last year, suffering water ingress due to the incorrect installation of chimney flashing by the insurer’s contractor.

Suncorp agreed to fix the cyclone damage, including replacing stairs and a fireplace and repairing the roof and driveway.

The Australian Financial Complaints Authority recognises Suncorp worked to assess, rectify and settle on damage related to the poorly executed work.

And the claimant said she was “happy with the finished works”.

However, Suncorp should pay $6300 – the most AFCA can award for non-financial loss – to compensate for “significant stress, inconvenience and ongoing disruption over nearly two years”, the ombudsman says.

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Suncorp’s actions “fell significantly below expected standards” and the complainant went “extended periods without a functional kitchen, with water‑damaged areas remaining unrepaired, and with unresolved safety and habitability concerns.

“The nature and scale of these disruptions plainly exceed the level of ordinary inconvenience typically associated with insurance repairs,” AFCA said. “There were prolonged periods where repairs stalled, scopes were left unresolved and trades did not attend as arranged.

“The complainant repeatedly had to intervene to correct errors, request progress updates, identify workmanship issues and challenge the suitability or qualifications of trades appointed by the insurer.”

An AFCA ombudsman also notes that “in many cases, progress on in‑scope repairs did not occur until after complaints were lodged or AFCA became involved.

“For these reasons, I am satisfied that the complainant experienced an unusual degree of disruption, inconvenience and emotional strain arising from the insurer’s handling of the claim.”

See the ruling here.