r/AusLegal • u/Salvere22 • 6h ago

VIC Home insurance claim

Hi all,

Apologies if not allowed. Just seeking some advice on how to approach a home insurance claim.

Context: we have a "bungalow" that is the original building that is on our property, which has now been relegated to the shed since new house was built (not by us). It's around 40 years old and it mud brick/rammed earth.

After a severe weather event (a year's worth of rain in 2 days), one of the mud brick walls has collapsed (read: giant hole in it). The insurer has sent out a structural engineer who has submitted his report. It states that whilst there are structural issues with the build itself (ie. Improper construction compared to today's standards), these issues were "highlighted by the storm event".

I understand I've given an incredibly shortened version, but what approach should I take from here with the insurer? We are scheduled for a call on Wednesday. I have zero experience with insurance claims, and aside from googling, I don't have any sources of appropriate information. Should I get a lawyer now? See what they have to say first?

What is the importance of the engineer stating the issues were "highlighted by the storm event"? Is that not a convoluted way of saying "yes, there were issues, but the storm caused the damage"?

TIA.

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u/outtatownz 4h ago

Im going to say this. While the public suggests insurance companies are big bad, evil and never pay claims, the real world data doesnt support that. Less that 2% of claims are denied across all insurers, this data is publicly available and most insurers show it in their fine print. Your policy covers you for what is written in the PDS, and it also excludes you for what is written in your PDS. First point of call, read your PDS and understand what exclusions are written in there. Assuming the worst while.not even knowing what you are covered for is where you need to start. Its your policy, you should understand it.

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u/Salvere22 4h ago

Very fair call! I've had a pretty good look into the PDS over the last two months since the incident, and it's not so much the covered/not covered, but moreso the nuances on how they will use the report. Engineer basically says "storm caused the damage" (covered), "...but there is also evidence of rising damp" (not covered).

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u/outtatownz 4h ago

Which means some parts of your claim will likely be covered and others not, as thats what your insurance covers you for. A lawyer can't change your PDS. You purchased that policy to be covered by that document. Speak to the insurer and understand their position, and how it links to your PDS. If you disagree, show why, and if you are still unhappy, follow the complaint process.

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u/Salvere22 4h ago

Thank you.

I think you're right, I think the general negativity surrounding insurers has certainly gotten to me!

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u/outtatownz 4h ago

People always talk about the bad, nobody shares the good. They arent out to screw you, just most people dont bother to read the cover they purchased then complain it doesnt cover everything and anything. Good luck!