The insured made a claim for damage to her house caused by vibrations resulting from roadworks nearby.  The insurer accepted the claim initially and commenced an investigation plus temporary repairs.  A year later the insurer decided to change its decision and decline the claim based on an exclusion in the policy for loss caused by vibration.  The insured complained to the Insurance and Financial Services Ombudsman.

Upon examination of the case it was found that there was a clear exclusion for vibration and the insurer was entitled to change its mind about cover.  The original acceptance of cover and provision of temporary repairs did not harm the insured.

However, the Ombudsman found that the insurer had breached the Fair Insurance Code because of the delays, lack of transparency and lack of follow up for the uncompleted repairs.  These amounted to a significant breach of the code and the insurer agreed to pay the insured $50,000 compensation and $5,000 towards her legal fees.

Insurers are held to high standards in relation to the Fair Insurance Code, so if you consider that your insurer has not complied with their obligations it pays to look into the matter further.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley
Insurance Lawyer