What Legal Recourse Can I Take If My Strata Insurance Claim Is Denied in Australia?

Question from lucy, What Legal Recourse Can I Take If My Strata Insurance Claim Is Denied in Australia?

Answer from AI:

Understanding Strata Insurance

Strata insurance, also known as body corporate insurance, is mandatory in Australia under each state’s specific strata legislation. It generally covers common or shared property as defined on the title of the property. However, the specifics of what is covered can vary based on the policy and the insurer.

Insurance Claim Denial

If your strata insurance claim has been denied, it’s important to understand the reason. In your case, it appears the insurer is arguing that the leak began before the policy’s inception and that you should have noticed it earlier. This could potentially fall under a policy exclusion for pre-existing damage or lack of maintenance, which are common in many insurance policies.

Legal Recourse

If you believe your claim has been unfairly denied, there are several steps you can take:

1. Review your policy: Check the terms and conditions of your insurance policy to understand what is covered and what is not. This will help you determine if the insurer’s decision is in line with the policy.
2. Internal dispute resolution: If you disagree with the insurer’s decision, you can lodge a complaint with their internal dispute resolution department. They are required to review your complaint and provide a response.
3. External dispute resolution: If you’re not satisfied with the outcome of the internal dispute resolution process, you can take your complaint to the Australian Financial Complaints Authority (AFCA). AFCA provides a free and independent service to resolve complaints between consumers and financial service providers.
4. Legal action: If all else fails, you may consider taking legal action. However, this should be a last resort as it can be costly and time-consuming. You should consult with a legal professional before proceeding with this step.

Seek Legal Advice

Given the complexity of insurance law and the specifics of your situation, it would be beneficial to seek legal advice. A lawyer can help you understand your rights, review your insurance policy, and guide you through the dispute resolution process.

Remember, this information is general in nature and does not constitute legal advice. You should consult with a legal professional for advice tailored to your specific circumstances.

For more information on strata insurance and dispute resolution, you can visit the Australian Financial Complaints Authority and the MoneySmart website.