Life Insurance Australia :: News
SHARE

Share this news item!

Homeowner Successfully Challenges Insurer in Disclosure Dispute

Homeowner Successfully Challenges Insurer in Disclosure Dispute

Homeowner Successfully Challenges Insurer in Disclosure Dispute?w=400

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 property owner, whose home was recently flooded, has won a legal battle against his insurer over the denial of his claim.
The insurer, Auto & General Services, had alleged that the homeowner breached his policy terms by not disclosing a business operation in a farm shed on the property.

According to Auto & General Services, it denied the claim for flood damage because the homeowner failed to disclose that he had been running an air conditioner and refrigerator retail business from the shed. The insurer pointed out that during the most recent policy renewal, the homeowner confirmed that no part of the property was used for business activities or for buying, selling, or storing business products or equipment.

The homeowner admitted to operating a business out of the shed but argued that he was not required to disclose the details because the policy specifically excluded coverage for business and farming structures, including sheds. He emphasized that the policy referred to the insured dwelling as a "freestanding house" and that any losses to the shed were covered by a separate business insurance policy.

The Australian Financial Complaints Authority (AFCA) sided with the homeowner, stating that the home and contents policy did not cover the shed and it was fair for him not to disclose the business. AFCA ruled that when the homeowner answered the insurer's question about whether any part of the "property" was being used as a business premises, he understood the question to refer only to the freestanding residential dwelling where he lived. AFCA also noted that the certificate of insurance specifically mentioned the freestanding home and did not include any reference to outbuildings or sheds.

As a result of the ruling, Auto & General is now required to accept the claim and appoint a qualified expert to prepare a scope of works for repairs to the insured property. The insurer must arrange and complete the repairs or provide a cash settlement with a 15% contingency. AFCA has also instructed Auto & General to assess the homeowner's entitlement to temporary accommodation benefits and reinstate his policy.

Published:Saturday, 9th Dec 2023
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

TelstraSuper Announces Decrease in Income Protection Insurance Premiums
TelstraSuper Announces Decrease in Income Protection Insurance Premiums
08 Nov 2025: Paige Estritori
TelstraSuper, a profit-for-member superannuation fund, has announced a substantial decrease in income protection insurance premiums for its members. Effective from 1 July 2023, members can expect reductions ranging from 11.5% to 30%, following a comprehensive review of the fund's insurance pricing. - read more
Australian Income Protection Insurance Sales Experience Downturn
Australian Income Protection Insurance Sales Experience Downturn
08 Nov 2025: Paige Estritori
Recent data from Plan For Life indicates a sharp decline in individual income protection insurance sales in Australia, with new risk income sales experiencing an 8.3% downturn in the year ending September 2024. This contrasts with previous periods of growth, highlighting shifting dynamics within the insurance market. - read more
New Port Disruption Insurance Addresses Rising Global Shipping Challenges
New Port Disruption Insurance Addresses Rising Global Shipping Challenges
08 Nov 2025: Paige Estritori
In response to escalating global shipping challenges, leading broker Marsh and Lloyd's underwriter Tokio Marine Kiln have launched a pioneering business interruption insurance specifically designed for ports. This innovative product aims to mitigate the financial impact of trade disruptions caused by various factors, including geopolitical tensions and operational strikes. - read more
Marine Insurers Encouraged to Adopt AI to Mitigate Rising Industry Risks
Marine Insurers Encouraged to Adopt AI to Mitigate Rising Industry Risks
08 Nov 2025: Paige Estritori
The International Union of Marine Insurance (IUMI) annual conference in Singapore has brought to light the critical role of artificial intelligence (AI) in transforming the marine insurance sector. Industry leaders emphasized the necessity for insurers to adopt AI technologies to effectively manage escalating risks and maintain a competitive edge. - read more
EQT's Bold Move: AUB Group's Potential Acquisition and Its Implications
EQT's Bold Move: AUB Group's Potential Acquisition and Its Implications
08 Nov 2025: Paige Estritori
In a significant development within Australia's insurance sector, Swedish private equity firm EQT has proposed a takeover of AUB Group, valuing the insurance broking company at A$5.25 billion. This offer represents a 25.1% premium over AUB's last closing share price, underscoring EQT's strong interest in expanding its footprint in the Australian market. - read more
Click for more Insurance News


Life Insurance Articles

Maximize Your Safety Net: Top Tips for Optimizing Income Protection Benefits
Maximize Your Safety Net: Top Tips for Optimizing Income Protection Benefits
Welcome to a pivotal guide dedicated to empowering you with the essentials of income protection insurance in Australia. As we navigate through times of uncertainty, safeguarding your financial wellbeing becomes not just a priority, but a necessity. Income protection insurance stands as one of the key pillars of financial security, ensuring a steady flow of income during periods when you're unable to work due to illness or injury. - read more
Life Insurance Comparison: Key Questions to Ask Your Insurer
Life Insurance Comparison: Key Questions to Ask Your Insurer
Life insurance is a crucial consideration for middle-aged to older Australians. It provides financial security for your loved ones in the unfortunate event of your death. Understanding the various options available is vital to making an informed decision. - read more
Understanding Life Insurance: How to Get the Best Online Quotes
Understanding Life Insurance: How to Get the Best Online Quotes
The digital age has fundamentally transformed how we approach almost every aspect of our lives, including the way we shop for life insurance in Australia. Gone are the days when one had to schedule meetings with insurance agents or flip through pamphlets to understand life insurance policies. Today, obtaining life insurance quotes online has become the norm, offering a hassle-free and incredibly accessible platform for individuals to safeguard their financial future. - read more
Top 5 Reasons to Consider Life Insurance While You're Young
Top 5 Reasons to Consider Life Insurance While You're Young
When you’re young, life is all about new experiences and making plans for a promising future. While factors like travel, career, and relationships often take centre stage, one aspect often overlooked is life insurance. It might seem like something to consider later in life, but starting a policy while you're young can be a savvy financial move. - read more
The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia
The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia
As the landscape of finance and personal security evolves in Australia, the importance of being insured has never been more prominent. In a world of changing family dynamics, economic pressures, and higher living costs, life insurance stands as a bastion of support ensuring the well-being of loved ones in the event of unforeseen circumstances. - read more


Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Depreciation:
The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.