Home Parking Dilemma Leads to Insurance Dispute Loss

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 homeowner's struggle with her narrow driveway has culminated in the rejection of her car theft claim, illustrating the critical importance of adhering to insurance policy stipulations.

The insurer, SGUAS, denied the claim based on a clause that excluded coverage for vehicles left on the street between 10pm and 5am. The woman's car was stolen at 2am from directly outside her house, with the thieves gaining access by breaking into her home and taking the keys.

According to a police report, the location of the car would not have deterred the thieves, who broke a window to enter the house. “Regardless of where the car was parked, the offenders would have successfully taken the vehicle," stated the report.

The car owner revealed that she bought her insurance through a broker and relied on him for managing all details. She admitted to frequently parking on the street because of the difficulty in maneuvering her car into the narrow driveway and carport of her new home.

During the investigation, her broker argued to the Australian Financial Complaints Authority (AFCA) that the car would have been stolen regardless of its parking spot. However, AFCA maintained that the insurer was not liable as the homeowner did not inform them of her regular street parking, a critical deviation from the declared parking arrangements.

AFCA's ombudsman expressed sympathy for the homeowner's plight but upheld the policy's exclusion for overnight street parking. "It seems this practice was established due to the inaccessible driveway, yet the policy clearly stipulates the necessity to inform the insurer of any such changes," the ombudsman noted.

"The homeowner consistently parked on the street overnight, thereby invalidating her insurance claim due to the policy's terms. The failure to communicate this change prejudiced the insurer’s ability to assess the risk properly, justifying the claim denial," the AFCA representative explained.

AFCA further noted that street parking significantly increases the risk of theft, a factor emphasized in the insurer’s underwriting guidelines. “Even though the thieves acted boldly, the information provided by the insurer indicates a higher theft risk for cars parked on the road,” it stated.

At the inception of the policy, the homeowner’s broker had conveyed detailed parking arrangements to the insurer, even providing a picture of the carport. Yet, this information became obsolete when the homeowner developed a habit of street parking without updating the insurer.

This case serves as a stark reminder of the crucial role precise adherence to insurance policy terms plays. Policyholders should communicate any changes in their circumstances to ensure their coverage remains valid. For more details, you can refer to the original ruling by AFCA.

Published:Monday, 9th Sep 2024
Source: Paige Estritori

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

Share this news item:

Insurance News

Rising Professional Indemnity Insurance Costs Impact Australian Businesses

07 Dec 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database (NCPD) statistics, highlighting a significant increase in professional indemnity (PI) insurance premiums. Since 2015, these premiums have risen by 27%, posing financial challenges for businesses across the nation. - read more

Australia's Construction Boom Fuels Demand for Professional Indemnity Specialists

07 Dec 2025: Paige Estritori

Australia's construction industry is experiencing unprecedented growth, leading to a heightened demand for professional indemnity (PI) insurance specialists. This surge is driven by a combination of large-scale infrastructure projects, evolving contractual complexities, and new regulatory requirements. - read more

Evolving Trends in Professional Indemnity Insurance: Opportunities and Challenges

07 Dec 2025: Paige Estritori

The professional indemnity (PI) insurance market is undergoing notable shifts, presenting both opportunities and challenges for various sectors. Recent trends indicate a softening market, with premium reductions of approximately 5-10% available for low-risk profiles, particularly within financial services. This development offers financial relief for businesses with strong compliance records and minimal claims histories. - read more