Isn't Insurance Company Responsible if The Builder Damages The Property during a Claim Process?

ShazOz on 11/10/2023 - 16:08
Last edited 11/10/2023 - 16:17 by 1 other user

I thought the insurance company was responsible for any repairs if the builder damaged the property during the claim process otherwise the builder could do anything at their will with no repercussions.

The builder made a massive damage but the insurer is saying they are not responsible for it. I wouldn't have allowed them to touch the house if they had disclosed it before they sent over their builder. They were contracted by the insurance so I am unsure if I can lodge a dispute directly with the builder.

Is my understanding incorrect? I have the pictures of before/after damage and they were sent to the insurance company.

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  Jimothy Wongingtons on 11/10/2023 - 16:12

  +1

  surely the builders insurance would cover for this…or they could..fix the issue themselves?
  Or is builder claiming they didnt do it?

  • 

    ShazOz on 11/10/2023 - 16:17

    I only spoken with the insurance company and the Claim Manager stated that they were not responsible.

    The complaint has been lodged and they are looking into it but I was taken aback by their statement.

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      Jimothy Wongingtons on 11/10/2023 - 16:30

      -1

      i guess it comes down to your pds and how the relationship between the insurance company, and the builder works and the legal interactions and limitations. it probably doesnt make any promise/ have guidance on what happens if a third party repairer causes damage…

      i guess complaints need to be taken up with builder, even though it will be insurance paying the builder's invoice.

    • 

      deme on 11/10/2023 - 19:14

      Claim Manager stated that they were not responsible.

      They are monkeys who try wriggle out of everything.

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  PissLUR on 11/10/2023 - 16:22

  +4

  the builder will have their own insurance to cover theirs

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  Drakesy on 11/10/2023 - 16:35

  +3

  Guessing as the insurance company is technically the client then they'd be responsible for getting the builder's insurance company to pay up.

  • 

    chrisie on 11/10/2023 - 16:43

    Yes Agree with you.

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  Nugs on 11/10/2023 - 17:29

  it's a spiral, they want you to perpetually make claims
  .

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  Malik Nasser on 11/10/2023 - 18:08

  Have a read through these.
  The builder should have insurance to cover this type of damage (does not go through your own building insurance).
  https://business.gov.au/planning/industry-information
  https://business.gov.au/planning/industry-information/constr…

  insurance for loss or damage to property in the course of construction

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  deme on 11/10/2023 - 19:16

  afca.org.au and later https://asic.gov.au/about-asic/contact-us/reporting-miscondu…

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  2loud2old on 11/10/2023 - 19:40

  The builder's own insurance should cover it.
  I had similar a few years ago, builder's insurance covered it, was a pain as everything took longer but was resolved eventually

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  ShazOz on 14/10/2023 - 15:21

  Update
  Claim Manager contacted me yesterday and provided an update that the builder is now investigating why their employees didn't get me to sign damage related disclosure. This investigation is their internal matter, so it appears to be another tactic to avoid fixing the damage.

  The insurance has decided to send both their assessor and the builder to review the damage. It appears there would be blame game to avoiding/delaying fixing the issue. I am even concerned that the builder will ultimately complete a dodgy repair if they agreed to carry out these repairs. The estimated repair is approx. $6k.

  Still waiting to hear regarding my complaint.

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  ShazOz on 03/11/2023 - 21:52

  Update

  I received a call from the insurance today. As expected, the builder is only willing to do patching and won't provide any warranty at all. The insurance is refusing to take any responsibility.

  Can I initiate the NCAT case against the insurance?