A property owner who said Suncorp misled him into digging up his bathroom floor to find a leaking pipe has lost a dispute before the complaints authority.  

The insurer’s policy excluded the cost of repairing the pipe, but it paid out $1500 for “exploratory costs” – the maximum available – to find the source of the slow leak.  

Suncorp’s plumber identified the “approximate location” of the leak in a downstairs bathroom – which was consistent with assessments from two plumbers engaged by the claimant. But it noted this was an “estimation only”.

The claimant dug in the recommended area but was unable to find the pipe.  

He said Suncorp should cover the cost of stripping out and repairing the room. He alleged a Suncorp consultant told him the insurer would do so if the plumber misidentified the leak source.  

The Australian Financial Complaints Authority, which reviewed a phone call recording, says a comment by the consultant “could be understood” as such a guarantee.  

But it notes the consultant also told the complainant Suncorp would not cover damage caused during attempts to find the leak.  

AFCA says the plumber provided a good-faith, “evidence-based” opinion.  

“Despite the specific area identified, the insurer’s plumber was clear that their finding was an approximation or estimate only. When read in context, the ... report was a ‘best guess’ rather than an exact finding or guarantee.”  

The claimant did not have a “detrimental reliance” on the consultant’s advice and would probably have done the work regardless, because several plumbers had suggested it, the authority says.

AFCA accepts the man was “unduly frustrated” by the incorrect advice and Suncorp should pay him $500 non-financial loss compensation.  

See the ruling here.