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The insurance company must partially cover the earthquake claim – daily – Insurance News

The insurance company must partially cover the earthquake claim – daily – Insurance News

 


The homeowner who says last year’s Victorian earthquake caused damage to her home will be partially covered by her building insurance following a ruling on the dispute.

A decision by the Australian Financial Complaints Authority (AFCA) concluded that the 5.9-magnitude earthquake on 22 September likely caused cracks in the building’s interior plaster, but denied the homeowner’s claim that it caused the roof linings to collapse.

Yue said that the poor condition of the roof caused water ingress and caused the roof to deteriorate, and that the cracks were driven by other ground movements unrelated to the earthquake.

The complainant filed a complaint on the day of the earthquake, and on October 1, he called Yue to tell him that the roof had fallen after heavy rain.

The next day, a construction worker appointed by Youi discovered holes in the ceiling that allowed water to seep through and caused the lining to sag.

Youi commissioned a structural engineer, referred to as CRD, on October 8 to inspect the property damage.

The deteriorating condition of the roof allowed moisture to enter the wooden roof linings and forced the roof to collapse, CRD said.

They also noted cracks in the ceiling plaster and wall plaster in several parts of the house, but said that this type of crack was understandable given the age of the building and the materials used in it.

The plaintiff admitted the wear of the pre-existing house, but said the earthquake exacerbated the cracks and damaged other intact parts of the house.

The engineer’s report said that while the earthquake highlighted past problems with the home, it was not the direct cause of the damage.

The Asian Football Confederation said the insurer had failed to provide significant evidence to substantiate its suggestion that other factors had caused the internal rift.

She noted that the ARC had not completed any soil tests or base examinations to indicate that other ground movement had caused the damage.

The judgment determined that the earthquake’s intensity, as the CRD report indicated, was strong enough to cause the faulting that the owner claimed Youi was required to cover the costs.

The Asian Football Confederation agreed with the insurance company’s assessment of the cap deterioration and said it was likely that other factors had led to the damage.

Click here for the full verdict.

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2/ https://insurancenews.com.au/daily/insurer-required-to-partially-cover-earthquake-claim

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