A business cannot claim for the removal of debris washed into a billabong during Cyclone Jasper because the damage was caused by flooding, rather than the storm.

A claim for storm damage to sealed roads was paid after the 2023 cyclone hit Queensland, but QBE refused to pay for the billabong clean-up under an extra cover for debris removal.

The policyholder said some of the debris came from the damaged roads, and it sought 60% of the cost of removing it.

But in a dispute ruling, the Australian Financial Complaints Authority finds there is insufficient evidence of a covered loss, and the costs more likely relate to flood debris.

“Flooding significantly impacted the billabong, and flood damage and debris are not covered by the policy.”

An earthmoving company quoted $165,000 to excavate and clean out the billabong. The quote referred to materials that appeared to have washed in from roads and a bridge, but AFCA says the quote had very little analysis or reasoning and included no supporting evidence.

The ombudsman considered hydrology and engineering evidence, and says the billabong overtopped and the area flooded heavily.

An inundation map supported the extent of the flooding, and if road debris washed towards the billabong, it was probably facilitated by floodwater rather than stormwater alone.

Read the determination here.