Caravan owners who challenged their insurer’s decision to only partially cover storm damage have lost a dispute over pre-existing leaks.  

The claimants said a storm last April tore openings in the caravan that allowed water to enter, while wind caused the vehicle’s awning to thrash against the roof and the vehicle’s left side.  

An Insurance Manufacturers of Australia assessor, who engaged with the claimants’ repairer, identified “extensive damage” but said only the issues on the left side appeared to be caused by the storm.

They said the interior seemed to have pre-existing damage, probably from water entering through the air-conditioning unit and roof solar panels – “a common problem” in caravans.  

The assessor noted peeling of interior roof panels, which the repairer said “potentially occurred over some time”.

The insurer said the owners had resealed parts of the roof and its skylight in 2022.  

Insurance Manufacturers of Australia offered to settle for damage to the left side of the caravan based on the repairer’s estimated cost of $19,080.  

The claimants said they should be covered for all damage listed in the estimate, totalling $50,622.  

They argued there were no leaks before the storm and the internal damage was a “direct and immediate consequence” of the event.

They said previous roof resealing work was done for “cosmetic” reasons.  

But the Australian Financial Complaints Authority finds no evidence the other damage was caused by the storm, noting the claimants provided no expert evidence to support their argument.  

AFCA says the insurer mistakenly towed the vehicle to a salvage yard and now the complainants do not want it back.  

It finds it would be uneconomical to repair the caravan because the “cost of repairs and salvage value add up to more than its market value without damage”.  

Insurance Manufacturers of Australia has been told to sell the vehicle, which the complainants no longer want, and pay them either the sale price or its salvage value – $35,000 – depending which amount is greater.  

See the ruling here. 

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