Home and Contents Insurance Refusing to Pay

freshsqueezedlemon on 14/06/2017 - 12:31
Last edited 14/06/2017 - 12:39 by 1 other user

My house is insured with Allianz Home and Contents Insurance which covers storm damage.

I had recently been working on some renovations (internal only, no work done to the structure) and I wasn't aware that I had to inform Allianz. During the renovation, we were hit by a storm and an exterior awning was broken, and it'll cost $8000 to replace as it was already quite old and cannot be repaired, so I called up Allianz to make a claim under Storm Damage.

It was important that the awning gets repaired because it was above a glass roof and the room gets incredibly hot in summer under direct sunlight. 3 months later Allianz have now said that they're refusing the claim since we had not informed them of the renovation.

I understand that I was negligent for being unaware that I had to inform the insurers of any major renovation, but absolutely no structural work was being done that could have broken the awning. On top of that we had a certified installer inform them that the damage to the awning was caused by the storm.

Does anyone know what I can do at this point?

• 

  nocure on 14/06/2017 - 12:35

  Before commencing renovations it is important that you notify us as it may affect the terms and conditions of your home insurance policy. It is important that your increase your sum insured to reflect any extensions or renovations to make sure you are adequately covered in the event of a home insurance claim.

  ---

  This cover does not apply to existing buildings which are
  undergoing renovation or extension

  • 

    John Kimble on 14/06/2017 - 12:54

    +1

    That's crazy. So you are meant to get temporary renovation insurance or something? Or be uninsured during that period? Really?

    • 

      nocure on 14/06/2017 - 13:15

      +5

      They will do, and say anything to get out of a claim.

      • 

        Cheeper on 14/06/2017 - 13:24

        +2

        That is the first step insurers take when receiving a claim…

  • 

    djkelly69 on 14/06/2017 - 14:07

    +1

    What is the definition of renovation or extension?

• 

  boomramada on 14/06/2017 - 13:07

  +5

  https://www.fos.org.au/ ?

• 

  poboy on 14/06/2017 - 13:08

  Did the renovation effect the damaged area? Either making it more prone to damage or relying on it?

  You need to get all your facts. I would then call with a policy question (anonymously). Find out what they will tell you over the phone. They may give advice that you can rely on when re-approaching them or going to the ombudsman.

  Don't be an idiot to them, but instead fight logic with reasonable logic.

• 

  djkelly69 on 14/06/2017 - 14:01

  +11

  Ask them if they are familiar with s.54 of the Insurance Contracts Act, in particular subsection (3):

  Where the insured proves that no part of the loss that gave rise to the claim was caused by the act, the insurer may not refuse to pay the claim by reason only of the act.

  Given your claim/statement that the work in no way affected the awning, I don't see how they could use the subsection 2 exemption (ie. the work you were doing could not reasonably be regarded as being capable of causing or contributing to the loss you are claiming for).

  As stated above, it is basically the job of the frontline staff to try and fob off/deny claims for any reason they can. Ask for it to be escalated to manager, etc, and if still not resolved satisfactorily, take it to the Ombudsman linked above.

• 

  holdenmg on 14/06/2017 - 20:48

  +1

  "it was already quite old"

  So how old was the Awning that got damaged?

  Did Allianz send out a Loss Adjuster?

  Also:
  Allianz's dispute resolution process
  https://www.allianz.com.au/contact/dispute-resolution/