Homeowner Triumphs in Ground Movement Damage Claim
Homeowner Triumphs in Ground Movement Damage Claim
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 dispute over damage caused by ground movement due to a leaking pipe has received a favorable verdict from the Australian Financial Complaints Authority (AFCA), promising significant coverage for repairs.
The homeowner noticed cracking in a load-bearing wall on July 8, 2022, and quickly linked the issue to a leaking water main he discovered the next day. He attributed the cracking and additional damage throughout his house to ground movement from the leak.
Independent assessments commissioned by Hollard Insurance presented contrasting views. A plumber observed substantial leakage, resulting in damp conditions and soaking of nearby stumps. He suspected this might have led to slight settlement problems and further cracking within the property, particularly in the kitchen area.
Hollard's engineer, however, inspected the house roughly a month later. Their report downplayed the leaking pipe, chalking up the damage to long-term issues associated with the soil's properties, including seasonal moisture changes and environmental causes. According to the engineer, the cracking damage predated the observed leak and was related to the house's history.
The homeowner highlighted extensive renovation work conducted between 2016 and 2019 to stabilize the foundations of his 1930s-era home, including underpinning and relevelling. He noted the lack of substantial cracking until the sudden appearance of damage in July 2022.
AFCA’s evaluation supported the homeowner’s evidence that the damage in the newer parts of the house was a recent development. Video footage and the plumber's testimony showed significant leakage, undermining the engineer's less critical assessment. AFCA also questioned the conclusiveness of the engineer's floor-level survey.
"While there is a history of movement-related damage, the noted cracking around the extension did not follow this pattern," AFCA determined. According to the authority, the factors cited by the engineer involved gradual, long-term damage, but in this case, the damage seemingly appeared suddenly due to the leaking pipe.
In its final ruling, AFCA concluded that the homeowner's losses likely resulted from an unexpected, sudden release of water. Consequently, Hollard Insurance would be responsible for repairing the assessed damage or covering repair costs. However, unrelated damage not connected to the leak would be excluded from coverage.
The case underscores the importance of independent reviews and cultivates awareness about homeowners' rights amidst damage disputes. AFCA's decision shines a light on their role in ensuring fair evaluations are considered in claim disputes.
This ruling is reported with original insights from an article appearing in Insurance News.
AIA Australia has recently updated its Priority Protection life insurance suite, introducing changes designed to simplify discounts, enhance policy clarity, and support premium affordability. These enhancements, effective from 9 November 2025, reflect AIA's commitment to providing value-driven solutions for policyholders. - read more
Recent findings from a survey conducted by Zurich and the University of Oxford reveal that Australia has one of the lowest life insurance penetration rates globally. The study indicates that only 27% of Australians have income protection insurance, and 25% possess life insurance coverage. These figures are notably lower than the global averages of 33% for income protection and 32% for life insurance. - read more
Zurich has introduced a groundbreaking Women's Health Benefit within its Corporate Care Income Protection product, marking the first dedicated corporate income protection benefit in Australia designed specifically for female health conditions and events. This initiative aims to provide targeted support for women experiencing health issues that can impact their professional lives. - read more
Club Marine, Australia's leading boat insurance provider, has announced a new partnership with the Australian Offshore Powerboat Club (AOPC) to offer specialised insurance coverage for race boats while they are on land. This initiative addresses a significant gap in the market, providing protection against accidental loss, damage, theft, or malicious damage to vessels during storage and transit. - read more
Recent data from global insurance broker Marsh indicates a notable decline in commercial insurance rates across the Pacific region, with a 12% drop recorded in the last quarter of 2025. This marks the steepest decrease since early 2024, suggesting a softening market and increased competition among insurers. - read more
The Australian Competition and Consumer Commission (ACCC) has released its fourth insurance monitoring report, revealing that the government's cyclone reinsurance pool has led to reduced insurance premiums for customers in medium to high cyclone risk areas. However, the report also highlights that premiums remain high for many households and small businesses, with affordability continuing to be a significant concern. - read more
Insurance Australia Group (IAG) has announced the acquisition of a 90% stake in RACQ Insurance for $855 million. This strategic move is expected to bolster IAG's gross written premiums by approximately $1.3 billion, reinforcing its position in the Australian insurance market. - read more
Suncorp Group has reported a remarkable 89% increase in net profit for the first half of 2025, with earnings per share reaching A$86.56. This substantial growth reflects the company's strong performance in the Australian insurance sector. - read more
Gallagher Bassett has introduced mobile case managers in New South Wales, aiming to enhance workers' compensation services by providing on-site support to injured workers. This initiative builds upon a successful model implemented in South Australia over the past decade. - read more
From 1 April 2026, Australian private health insurance premiums are set to increase by an average of 4.41%, marking the most significant rise since 2017. This adjustment reflects the escalating costs associated with medical and hospital services, which saw a 5% increase in the last financial year. - read more
Welcome to the first steps in future-proofing your farming legacy. When we think about the hustle and bustle of daily farm life, it's easy to overlook the critical importance of estate planning. For the Australian farmer, estate planning is not just a matter of securing your assets; it's about ensuring the survival and progression of your hard-earned labour to the next generation. - read more
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Australian farmers face an array of natural disasters that can threaten livelihoods and disrupt the delicate balance of agricultural ecosystems. From devastating bushfires and droughts to powerful storms and floods, these catastrophic events pose serious risks to the farming community. Understanding and preparing for these forces is not just about survival; it's about building a sustainable future for farms across the continent. - read more
Welcome to the defining era where technology and agriculture entwine, bringing forth the digital farmer's era. With the evolution of agribusiness in the tech age, comes an array of new tools, opportunities, and risks. As a custodian of the earth and steward of the latest innovations, safeguarding your digital farm is just as crucial as nurturing your crops and livestock. - read more
Agroforestry is a transformative approach to land management that integrates trees into agricultural landscapes. In Australia, where farmers contend with variable climates and environmental challenges, agroforestry offers a resilient pathway to productivity and sustainability. - read more
In the world of agriculture, having the right insurance coverage is essential. Farming is a high-risk industry that deals with unpredictable elements, and insuring your farm equipment can safeguard your livelihood. - read more
As the backbone of Australian agriculture, farm equipment plays an essential role in day-to-day operations across our expansive and diverse landscapes. From the vast wheat belts to the tropical fruit farms, machinery ensures efficiency and productivity in the face of constant challenges. But with reliance on such equipment comes significant risk—the financial burden of damage or loss can be devastating to a farmer's livelihood. - read more
Crop insurance is a type of insurance policy designed to protect farmers from the financial losses that arise from damages to their crops. This could be due to various risks, including adverse weather conditions, pests, and diseases. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Loss of Use: Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.