Insurer not liable when insured not given information

The Insurance Ombudsman has declined an insured’s complaint over the cover provided by their insurance for a rental property.

They took out insurance against methamphetamine contamination, but were turned down when they made a claim after the property was contaminated.

Their property had a contamination level of 2.  The insurance only responded if the contamination was above 15.  Most insurance policies provide cover above 1.5, but the insured was unaware of this.

The insurer had provided information on different levels applied, but the insured’s financial adviser had failed to pass that information to the insured.  This meant the insurer was not at fault and not liable to pay the claim.

If you use an agent to arrange insurance, make sure they pass on all information to you.

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