A homeowner will not be covered for saltwater damage to his home contents after the industry ombudsman accepted storm surge was to blame.

His claim lodged with Allianz last August stated a storm caused the loss, but the insurer put the blame on “actions of the sea”, which were excluded.  

The policy’s product disclosure statement defined “actions of the sea” as “storm surge or a rise in the level of the ocean caused by a high tide, a king tide or any other movement of the sea”.

Allianz relied on a hydrologist’s report, which concluded a storm surge caused the inundation.  

The expert noted the Bureau of Meteorology had issued a warning for “strong winds and abnormally high tides from the strong winds”.  

The Australian Financial Complaints Authority acknowledges the wind alone would “constitute a storm as detailed by the policy”.  

But it says the damage was specifically caused by a storm surge created by that strong wind.

The insurer can deny the claim but has been told to pay $1000 compensation because it should have engaged a hydrologist earlier in the claims process and caused unnecessary delays and stress.  

See the ruling here.