Insurer made to pay after claimant’s home ‘ruined’
The dispute authority has told Allianz to pay the maximum penalty for non-financial losses and make further settlements after mishandling a homeowner’s storm damage claim.
The insurer accepted a claim for rainwater ingress damage after a December 2023 storm, including covering mould remediation and the removal of asbestos.
But it denied liability for damage it suggested was caused by poor maintenance, wear and tear, and faulty design work.
The claimant said the insurer removed his roof and left some windows open for a long period during the storm season. He said this caused rain to enter the Queensland home more than 20 times.
The insurer also left pieces of asbestos throughout the property and failed to fix mould contamination, causing damage to contents including mementos relating to his dead child, the man alleged.
He said Allianz left the home “completely ruined” and caused significant financial, psychological and emotional distress to him and his young family.
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In its dispute decision, the Australian Financial Complaints Authority says insurer delays caused additional property damage.
It says the insurer has failed to explain why it took months to arrange damage assessments and there is limited evidence the home had significant maintenance issues or defects.
The authority also criticises Allianz for not arranging drying equipment for water-damaged areas, its failure to properly remove asbestos and poor efforts to tarp the roof.
“I am satisfied the mould infestation and additional water ingress to the property occurred due to the insurer’s poor and inadequate make-safe works and delayed claim handling,” an AFCA ombudsman said. “Once the claim was lodged, the responsibility remained with the insurer to assess the property within reasonable time frames and arrange make-safe and repairs in a timely manner.”
It says the property has “deteriorated significantly since claim lodgement”.
Allianz must settle with the homeowner beyond the policy’s insured sum of $400,715 to cover damage by its appointed workers. AFCA says a cash settlement is fair given the insurer’s handling of the claim.
The insurer must also provide temporary accommodation and pay $6300 to compensate for stress.
See the ruling here.
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