An insurer has lost a claim dispute after it denied cover for damaged blinds under an exclusion relating to material awnings.

A policyholder, represented by his broker, filed a farm pack claim with QBE following storm damage to his property.

Most of the claim was settled, but the insurer said the damage to Ziptrak blinds was “expressly excluded”. QBE’s policy said storm damage to “material awnings, fabric shelters, greenhouses, swimming pool and spa covers and linings” was not covered.

The claimant argued the blinds were not awnings, and he took his case to the Australian Financial Complaints Authority.

After consulting a dictionary, AFCA has ruled against the insurer.

“I accept the damaged blinds are made of fabric material,” an ombudsman said. “That said, I am not satisfied that the Ziptrak blinds are awnings for the purpose of the policy.

Related article: Rogue builder’s botched work not malicious

“Generally, awnings are used over caravans, windows, doors, including desks and patios needing overhead shade.

“By contrast, these blinds are designed for situations requiring partial or full enclosure, which is materially different from the purpose of an awning.”

The complainant provided a $10,818 quote for the blinds’ replacement.

However, the insurer had accidentally paid for solar panel damage twice, resulting in an overpayment of $11,220, so AFCA has ruled no further action is necessary.

The authority has denied the complainant’s bid for non-financial loss compensation, stating QBE handled the claim “reasonably”.

“While I have found the partial denial for the blinds to be incorrect, this issue alone does not warrant compensation,” the ombudsman said.

See the full ruling here.

---

For in-depth analysis, features and opinion, read the latest Insurance News magazine

---