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.
A recent Good Returns TV discussion with Financial Markets Authority Director of Deposit Taking, Insurance and Advice Michael Hewes has renewed attention on a practical issue for New Zealand households: too many people still find financial advice hard to access, hard to understand, or too time-consuming to begin. - read more
New Zealand’s winter injury data is a timely reminder that a day off can become a financial event very quickly. Insurance Business has reported that snow sports injury claims reached a five-year high, with ACC accepting 8,309 skiing claims at a cost of $32 million and 5,425 snowboarding claims at a cost of $14 million for 2025. For households that rely on regular wages, the issue is not only the medical bill. It is the income interruption that can follow. - read more
A recent New Zealand life insurance dispute has put a practical but often overlooked issue in the spotlight: having cover is only part of financial protection. Policyholders also need to know who owns the policy, how documents can be accessed, and what happens when urgent health circumstances arise. - read more
NSW Fair Trading’s criminal proceedings against Network Strata Services Pty Ltd, trading as Netstrata, have pushed strata governance and insurance transparency back into the national spotlight. The regulator alleges the company and its director and licensee in charge breached statutory obligations connected with strata scheme management in New South Wales, including alleged failures around conflicts of interest, undisclosed financial benefits and information provided to the regulator. - 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
Liability insurance is a form of insurance designed to offer protection against claims resulting from injuries and damage to people or property. It covers legal costs and any payouts for which the insured party would be responsible if found legally liable. Intended to protect against claims resulting from injuries and damage to other people or property, liability insurance is critical for small businesses as it shields them from potentially crippling legal expenses. - 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
Liability insurance is a type of coverage designed to protect you from claims arising out of injuries or damages to other people or property. For freelancers, who often juggle multiple projects and clients, liability insurance can offer a safety net that reduces financial risk and instability. - read more
Start Here !
Knowledgebase
Moral Hazard: The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.
No comments yet. Be the first to share your thoughts.