Buying a home is a big expense. So is insuring it. But the thought of something happening – a fire or flood, storm damage, a break-in – means most of us keep paying for it even as those premiums go up. It is also why when something does go wrong we are entitled to expect our insurer to do the right thing.
Home insurance complaints are on the rise, with natural disasters such floods and fires making the situation worse. Under Australian law, you are entitled to a timely and fair response after you lodge a claim.
If you aren’t getting either, make a home insurance complaint.
Home insurance claims are up there with car insurance as the most complained about general insurance products. With delays in home insurance claims and repairs rising, so have the complaints to the Australian Financial Complaints Authority (AFCA).
There are terrible stories of people living in unsafe houses, unknowingly putting their health at risk with airborne mould, because insurers such as IAG, the country’s biggest insurer, kept delaying their claim. AFCA does not name individual companies in its reports on consumer complaints but Handle My Complaint has received complaints about many different insurers.
After Romantha’s home was damaged during a storm, the RAC assessor led her to believe her insurance claim wouldn’t be an issue. But then she received a letter to say an inspection had shown the collapsing ceiling was due to glue failure and her claim had been rejected under ‘general exclusions’. The fact the assessor hadn’t even climbed up to look at where the water was seeping in, but just taken a few photos, made the decision even stranger. The disability carer lodged a complaint with Handle My Complaint and within a few days the money for repairs was in her bank account.
Romantha’s experience is not unusual. Home insurance claims are often wrongly rejected, whether it’s because of a lack of information or simply because the insurer made a bad call. If you have been paying premiums for home insurance, you deserve to be treated properly. Don’t hesitate to lodge an insurance complaint if the outcome is not what you expected
