A homeowner who was forced out of his property for two years during water damage repairs has won a dispute over claim delays and a botched tiling job. 

The complainant lodged a claim in November 2021 after an earthquake led to a water pipe leak and mould contamination. 

Insurer Hollard accepted the claim in September 2022 and began decontamination work that November.

In May 2023 it started work stripping out contaminated surfaces, which required the claimant to move to temporary accommodation.  

During work on a water closet in April last year, Hollard’s builder damaged some tiles while removing them.

The insurer told the claimant it could not find replacements that matched the broken tiles, given their age.

The complainant said this was unfair. He showed the Australian Financial Complaints Authority a property auctioneer’s report stating that if non-matching tiles were used, the home’s value could drop as much as $30,000, because buyers would think a renovation was required.  

Hollard said the tiles were removed to waterproof the floor, which was the best way to prevent future damage.  

AFCA acknowledges this but says the insurer’s decision caused financial loss to the homeowner.  

It notes the scope of work warned of possible tile damage, but says there is a “significant difference” between this and the tiles being removed and not replaced.  

“On balance, the insurer’s actions have caused damage to the complainant, outside of the scope of the policy, and in the circumstances it is fair that the insurer rectify the damage caused by its actions,” AFCA said. “Accordingly, the insurer should relay matching tiles on the second floor and entranceway, including relaying matching tiles in the bathroom.”  

Hollard must also pay the maximum $6300 compensation for non-financial loss because of the stress its claim handling caused.  

See the ruling here.