Dealing with unexpected incidents such as floods can be a nightmare for property owners and managers. When a house flood occurs, the natural response is to seek support from insurance policies to cover the damages. However, there are instances where insurance claims are denied, leaving property owners bewildered and frustrated. In this blog post, we will delve into a specific case involving a property management agency and an insurance claim denial due to a rusted bathroom sink flexi-hose.

What Happened: A Flexi-Hose Leak and a Denied Claim

In a recent unfortunate event, a property managed by our agency suffered significant water damage due to a bathroom sink flexi-hose leak. The owner, in accordance with their insurance policy, promptly filed a claim to seek compensation for the losses incurred. However, to their surprise and dismay, the insurance company conducted an inspection and decided not to pay out on the claim.

Why the Insurance Company Refused to Pay

Upon investigation, it was determined that the insurance company denied the claim primarily because the flexi-hose was found to be rusted. The insurance policy held by the property owner typically covers sudden and accidental water damage, including incidents caused by faulty plumbing or burst pipes. However, in this case, the rusted flexi-hose became the focal point of contention.

From the insurance company’s standpoint, the denial was based on the interpretation that a rusted flexi-hose implies a lack of proper maintenance. Insurance policies often include clauses that require property owners to perform regular maintenance and take necessary precautions to prevent damage. Neglecting maintenance responsibilities can result in claim denials, as insurers consider them as instances of avoidable negligence.

Understanding Your Insurance Policy Obligations

One of the crucial factors to consider in situations like these is the language used in the insurance policy. Policyholders should carefully review the terms and conditions, including clauses related to maintenance responsibilities and exclusions. By doing so, property owners can gain a better understanding of their obligations and ensure compliance to prevent claim denials.

How to Avoid Insurance Claim Denials

To avoid potential claim denials, property owners and managers should adopt a proactive approach to property maintenance. Regular inspections, timely repairs, and keeping an accurate record of maintenance activities are essential. It is also advisable to consult with professionals, such as plumbers, to ensure that plumbing systems are in good condition. By staying diligent and taking appropriate measures, property owners can minimise the risk of claim denials and maintain a positive relationship with their insurance providers.

Insurance claim denials can be frustrating and overwhelming, especially when unexpected incidents such as house floods occur. In the case of the property managed by our agency, the insurance claim was denied due to a rusted bathroom sink flexi-hose, highlighting the importance of regular maintenance and complying with policy obligations. By understanding insurance policy language, taking preventive measures, and appealing denials if necessary, property owners can increase their chances of successful claims and protect their investments effectively.

Is your Brisbane investment property properly insured? Talk to Pure Real Estate’s property management team about protecting your investment with the right coverage.