Allianz defended its position, citing that it had communicated with the homeowner according to her specified preference by sending renewal documents to her property. These documents, sent in 2022 and 2023, were not returned or marked undelivered. Despite receiving all pertinent documents between 2016 and 2021, the policyholder could not find written notification regarding the recent premium hike and suggested this might be due to postal issues at her multi-unit residence. She argued that additional notifications could have been sent via registered mail or email.
The insurance company justified the increased premiums by explaining that a reassessment had categorised the homeowner's property as being in an "extreme flood risk zone," which impacted the premium costs. While the homeowner referenced a local council's assessment classifying the location as low flood risk, AFCA determined that an email exchange from March 2020 between her builder and the council did not suffice for evaluating the flood risk.
AFCA noted that the complainant was given the option to provide her own flood risk assessment, either with an independent hydrologist or from a relevant authority, but chose not to do so. The authority concluded that the insurer had fulfilled its duties by sending all necessary documents and deemed it reasonable for the policyholder to be aware of the premium changes.
According to AFCA, the complainant was responsible for reviewing the policy documentation and monitoring the direct debit transactions. If dissatisfied, she should have contacted Allianz at the time of renewal or explored alternative coverage options. The delay of 19 months before addressing the issue did not support her case.
This ruling underscores the importance of consumers actively monitoring insurance communications and being aware of their policy details, especially after premium adjustments based on risk reassessments. It highlights the principles of consumer responsibility in financial management, particularly in the complex realm of insurance.
The decision may encourage insurers to review and possibly enhance their notification processes to mitigate similar disputes. For consumers, this serves as a prompt to diligently review insurance documentation and address any concerns promptly with their insurers. Additionally, property owners in high-risk areas may want to proactively engage expert assessment to ensure their risk categories are accurate and justified.
