Ombudsman Orders Higher Compensation From Insurer Over Mould Dispute
Ombudsman Orders Higher Compensation From Insurer Over Mould Dispute
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.
The Australian Financial Complaints Authority (AFCA) has directed insurance provider Hollard to enhance its compensation payout to a homeowner following a failed attempt to remediate mould contamination in the owner’s property.
Despite previous repair efforts by Hollard, lingering mould issues persisted, prompting further disputes.
The homeowner, dissatisfied with earlier repair efforts concluded in May 2023, cited an expert analysis revealing ongoing mould contamination. The analysis detailed "moisture migration" from damp materials on the ground floor contributing to mould growth on the upper levels of the home. A mycologist’s inspection in August 2023 uncovered significant fungal spore concentrations throughout the property, including in the insulation and air-conditioning system.
Subsequent investigations indicated elevated spore levels within key areas such as a bedroom and bathroom. The mycologist conclusively stated that the property was not adequately remediated for mould.
Hollard refuted these findings, asserting repair work was satisfactory and contested the reliability of the homeowner's assessments, which were conducted six to ten weeks after Hollard’s expert, WEC, had reportedly verified the mould issues as resolved. Hollard suggested that any ongoing mould presence could be attributed to external factors, such as the homeowner’s pets or workers.
Conversely, the AFCA panel criticised Hollard’s WEC findings for their lack of specificity, primarily relying on generalized airborne mould testing. In contrast, the complainant's experts provided more comprehensive evaluations evidencing persistent mould issues.
The AFCA noted a contradiction in Hollard’s stance, linking the return of mould to non-claimable factors, as this was not in alignment with its own investigations which attempted to undermine the homeowner's findings of mould.
The authority concluded that Hollard had inadequately addressed the mould issue, likely exacerbated by insufficient containment and delays, allowing its spread to the upstairs area of the property.
In light of these findings, AFCA recommended a fair resolution involving a cash settlement to encompass a renewed scope of works with a 15% contingency increase. Moreover, Hollard is required to fund alternative accommodation while the property remains uninhabitable, compensate for any damage from its repair work, and cover the homeowner’s expert costs.
Additionally, Hollard has been mandated to pay a total of $5,400 in damages-$2,500 for the unresolved mould issue and $2,900 for failing to adhere to an earlier AFCA dispute outcome.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
PSC Insurance Brokers’ investment in MA Insurance Brokers is a timely reminder that specialist transport insurance advice is becoming increasingly valuable in a tighter, more complex market. The deal, announced in late June 2026, sees MA begin operating as PSC Transport Insurance Brokers, while founders Barry Mathison and Mariann Illyes retain an equity stake and continue leading the business as managing principals. - read more
QBE’s decision to stop offering its standalone office and trade pack products from July 2026 is a timely reminder for Australian tradies to treat every renewal as more than a simple rollover. The insurer is moving customers towards a standard business cover structure, with existing trade pack policyholders expected to be offered the replacement product at renewal from October 2026. - read more
Road user charging is moving from policy theory to a more serious industry conversation, with a new ITS Australia survey pointing to growing support for replacing fuel excise with a distance-based funding model. For transport operators, this is not just a tax discussion. It could change how fleets calculate running costs, compare vehicle types and plan margins on long-term freight contracts. - read more
A recent Australian Financial Complaints Authority decision is a timely warning for trade businesses that rely on tools, trailers and mobile equipment every day. The dispute centred on a business that had tools and a trailer stolen from a worksite, then challenged the insurer’s payout after discovering the claim was limited by the portable items section of the policy. - read more
The Financial Advice Association Australia has renewed pressure on the Federal Government to limit Compensation Scheme of Last Resort costs for financial advisers, arguing the profession should not carry more than $20 million in total levy exposure while adviser numbers remain under strain. - read more
In Australia, health insurance plays a significant role in ensuring individuals can access quality medical care without incurring prohibitive costs. - read more
Health insurance is a critical part of maintaining your well-being and financial stability. In Australia, understanding the basics of health insurance can help you make informed decisions that protect you during unforeseen medical events. - read more
With healthcare being a critical aspect of every family's well-being in Australia, securing the right family health insurance is not just a necessity but a responsibility. Recognizing the importance of this safety net is the first step towards safeguarding the future health needs of your loved ones. Balancing comprehensive coverage against affordable premiums can seem overwhelming with a multitude of plans available. - read more
Welcome to our discussion on basic health insurance cover, a topic that is crucial yet often overlooked in the hustle and bustle of everyday life. Navigating the world of health insurance can be daunting, but understanding your options is vital for peace of mind and financial stability. - read more
In the realm of securing one’s health and wellbeing, navigating the Australian health insurance landscape can be as critical as the care received. It stands as a complex tapestry, woven with policies, premiums, and government incentives, affecting individuals and families nationwide. - read more
Knowledgebase
Public Liability Insurance: A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.
No comments yet. Be the first to share your thoughts.