Homeowner Triumphs in Ground Movement Damage Claim
Homeowner Triumphs in Ground Movement Damage Claim
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A homeowner's dispute over damage caused by ground movement due to a leaking pipe has received a favorable verdict from the Australian Financial Complaints Authority (AFCA), promising significant coverage for repairs.
The homeowner noticed cracking in a load-bearing wall on July 8, 2022, and quickly linked the issue to a leaking water main he discovered the next day. He attributed the cracking and additional damage throughout his house to ground movement from the leak.
Independent assessments commissioned by Hollard Insurance presented contrasting views. A plumber observed substantial leakage, resulting in damp conditions and soaking of nearby stumps. He suspected this might have led to slight settlement problems and further cracking within the property, particularly in the kitchen area.
Hollard's engineer, however, inspected the house roughly a month later. Their report downplayed the leaking pipe, chalking up the damage to long-term issues associated with the soil's properties, including seasonal moisture changes and environmental causes. According to the engineer, the cracking damage predated the observed leak and was related to the house's history.
The homeowner highlighted extensive renovation work conducted between 2016 and 2019 to stabilize the foundations of his 1930s-era home, including underpinning and relevelling. He noted the lack of substantial cracking until the sudden appearance of damage in July 2022.
AFCA’s evaluation supported the homeowner’s evidence that the damage in the newer parts of the house was a recent development. Video footage and the plumber's testimony showed significant leakage, undermining the engineer's less critical assessment. AFCA also questioned the conclusiveness of the engineer's floor-level survey.
"While there is a history of movement-related damage, the noted cracking around the extension did not follow this pattern," AFCA determined. According to the authority, the factors cited by the engineer involved gradual, long-term damage, but in this case, the damage seemingly appeared suddenly due to the leaking pipe.
In its final ruling, AFCA concluded that the homeowner's losses likely resulted from an unexpected, sudden release of water. Consequently, Hollard Insurance would be responsible for repairing the assessed damage or covering repair costs. However, unrelated damage not connected to the leak would be excluded from coverage.
The case underscores the importance of independent reviews and cultivates awareness about homeowners' rights amidst damage disputes. AFCA's decision shines a light on their role in ensuring fair evaluations are considered in claim disputes.
This ruling is reported with original insights from an article appearing in Insurance News.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Australian Prudential Regulation Authority (APRA) has recently taken decisive action to address escalating concerns within the commercial auto insurance sector. In response to widespread industry protests over substantial premium increases, APRA has implemented emergency regulations aimed at protecting independent transport operators and logistics enterprises from potential financial distress. - read more
As 2026 unfolds, Australian insurers are confronting a trio of pressing challenges that are reshaping the industry's landscape. According to insights from Gallagher Bassett's upcoming report, 'The Carrier Perspective: 2026 Claims Insights,' the foremost concerns include rising premium costs coupled with shrinking insurability, escalating cyber and data risks, and increasing difficulties in attracting and retaining skilled workers. - read more
Australia's transport industry is sounding the alarm over a significant and growing shortage of truck drivers, a situation that poses a substantial threat to the nation's supply chain. The National Road Transport Association (NatRoad) has highlighted that the current shortfall of approximately 28,000 drivers is projected to escalate to 78,000 unfilled positions by 2029, representing a 26% decrease from the current workforce of 189,900 drivers. - read more
The Australian Prudential Regulation Authority (APRA) has released a pivotal report highlighting the pressing need for immediate and substantial action to shield communities from the escalating impacts of extreme weather events. This Insurance Climate Vulnerability Assessment (ICVA) serves as a stress test, modelling potential future scenarios rather than forecasting specific outcomes. However, the risks outlined are already becoming evident, reinforcing the insurance industry's calls for urgent intervention to mitigate extreme weather risks. - read more
Running a small business can be both rewarding and challenging. One of the key challenges is the variety of risks that can arise unexpectedly. These risks can range from financial uncertainties to operational hiccups, each potentially impacting your business's success. Understanding these risks and preparing for them is crucial for the longevity and sustainability of any small enterprise. - read more
Public liability insurance is a key consideration for business owners in Australia. This type of insurance helps protect businesses against claims made by third parties for injuries or property damage. But what exactly does it do? In simple terms, public liability insurance covers legal costs and expenses, as well as any damages awarded, if your business is found liable for an incident. - read more
Public liability insurance is an essential part of any business's risk management strategy, especially for those operating in Australia. It's designed to protect businesses when they're found legally responsible for injury or damage to third parties due to their operations. But what happens when you need to make a claim? That's where understanding the claims process becomes vital. - read more
In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown – risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more
Start Here !
Knowledgebase
Peril: A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or flood.
