A homeowner has won a vandalism damage payout after a contractor recklessly spread asbestos dust through his property.

The claimant said the contractor – engaged to complete reblocking – did work beyond what was agreed, which caused the hazardous material to disperse in his home.

The homeowner argued actions including non-authorised damage to external walls, cutting of asbestos sheeting and workplace safety violations voided his contract with the builder and – being deliberate and destructive – constituted vandalism.

But RACQ Insurance said this did not fall under its home policy’s definition of vandalism, which excluded damage “caused by someone who enters your home with ... express or implied consent”.  

In a dispute decision, the Australian Financial Complaints Authority disagrees with the insurer’s claim decision. It says the policyholder’s consent was “limited to the terms of engagement and did not extend to the actions of the contractor”.  

The authority’s ombudsman notes the policy’s vandalism benefit refers to damage caused “intentionally or maliciously” and it is “generally accepted that intentionally and maliciously both require intent”.  

However, given the circumstances of the loss, the issue of whether the worker intended to spread asbestos through the property is “moot”.  

“In my view, the important point is that the contractor works in the building industry, and therefore I do not accept he would have been unaware of the potential impact of one of the most dangerous products that has had extensive use throughout the building industry, asbestos.  

“In those circumstances, I am satisfied that the contractor’s actions amount to a level of recklessness that, given building industry knowledge of asbestos, is properly categorised as intentionally and or maliciously causing damage.”  

RACQ has been ordered to accept the claim.  

See the ruling here.