Date 05 April 2022
QUEENSLANDERS who had their insurance claims knocked back following the recent floods are being reminded that they still have options to challenge insurer decisions.
Legal Aid Queensland’s Assistant Director Flood Response Paul Holmes said if property owners disagreed with their insurer’s decision about their claim, they were still entitled to make a complaint through the insurer’s internal dispute resolution process.
“The first thing people need to do is get a copy of the insurer’s letter setting out the reasons why they say they will not approve your claim,” Mr Holmes said.
“If you disagree with those reasons you are entitled to use the insurer’s internal dispute resolution service to get the decision reviewed.
“I would encourage people to carefully document the reasons why they believe the decision was wrong, including any evidence they have including photos or video that they took of the damage or that they can access from neighbours, and statements from other people who saw the damage take place. This will give them the best chance of challenging an insurer’s decision.”
If property owners aren’t successful at having a decision over-turned through the insurers internal dispute resolution process, they can also lodge a complaint to the Australian Financial Complaints Authority (AFCA).
“My message to Queenslanders who have had property damaged during the floods and have had their claim refused is that you still have options and should get legal advice about your situation as quickly as possible,” he said.
People can access free legal advice by calling Legal Aid Queensland’s Natural Disaster Legal Help Line on 1300 527 700.
Mr Holmes also warned property owners to be aware of the pitfalls of accepting a cash settlement to finalise some or all of their insurance claim.
“A cash settlement might look appealing because you get the money up front and can finalise the claims process, but it can be a risky approach,” Mr Holmes said.
“You will be responsible for organising all of the builders and tradies to repair your property and your insurer won’t guarantee the repairs or the work done by a builder that you organise.
“People also need to be aware that if they have a mortgage, their lender may require the cash settlement be paid to them, depending on the circumstances.
“I would encourage people to get legal advice before accepting a cash settlement to finalise their claims”.
Media contact
- Amanda Catania (07) 3917 0407
Last updated 7 April 2022