While Suncorp consented to cover costs for various home repairs including cabinetry, plaster and flooring, it refuted claims associated with damage to tiles and subflooring. The insurer contended, citing their experts, that the moisture in these areas arose from a lack of surface drainage and long-term wetness rather than the single incident. However, the homeowners’ experts identified considerable water damage extending beneath the tiled sections, declaring some areas structurally compromised.
The Australian Financial Complaints Authority (AFCA) reviewed the case, noting Suncorp had previously acknowledged damage to the particle board in the bedroom, which connected to other areas of the home. AFCA's decision highlighted that moisture persisted under the tiles and subflooring for extended periods, creating further issues. Consequently, AFCA ruled for a settlement to adhere to a repair quote of $129,466, with an additional 20% for contingency.
This ruling also dictates that Suncorp must compensate for accommodation, storage, and expert fees in addition to a $5,000 payment for the distress and inconvenience caused by the handling of the claim. The decision underscores the importance of thorough assessments in insurance claims and the insurer’s responsibility in sufficiently addressing all pertinent damages.
Moving forward, this case sets a precedent for similar disputes involving moisture-related damages due to plumbing failures, emphasizing the significance of comprehensive and unbiased evaluations in resolving insurance claims. Homeowners and insurers alike should take heed of this case to better understand the financial and structural implications of such incidents.
