Rodents chewing through a dishwasher hose have triggered a payout of more than $200,000 after water and mould damage forced a family from their home for more than a year.

The June 2024 leak from water supply and drain hoses – which happened while the occupants were away for several days – caused damage to a kitchen, adjoining living areas, a hallway and three bedrooms.

IAG accepted the claim and paid more than $191,500 for building repairs, mould remediation, contents losses and 12 months’ temporary accommodation.

But the homeowner argued the damage was worse than the insurer recognised, citing independent engineering and building reports that put repair costs at more than $225,000.

She also sought additional cover for contents and further temporary accommodation, plus compensation over the insurer’s handling of the claim.

However, the Australian Financial Complaints Authority has found largely in favour of the insurer, ruling it correctly assessed the damage.

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It notes a hygienist’s report commissioned by the homeowner showed the water and mould damage was confined to some parts of the home rather than throughout the property.

However, AFCA says the insurer should pay a further $13,928 for repairs – a 10% uplift to reflect higher construction costs since the October 2024 quote for the job.

It must also pay up to $5000 for expert reports obtained by the claimant and $3000 compensation for non-financial loss over an earlier “insufficient” settlement offer.

An AFCA member said: “Although the insurer ultimately revised its position and accepted a broader scope of damage, I am satisfied that the distress and inconvenience experienced by the complainant had already been sustained as a result of the earlier handling of the claim.”

The insurer must also consider the claim for more temporary accommodation costs.

See the ruling here.