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.
The National Heavy Vehicle Regulator’s latest focus on agricultural heavy vehicle safety is a timely reminder for farm, livestock, grain and regional freight operators: safety standards are not just a compliance issue. They can also shape claims outcomes, business interruption, liability exposure and future access to affordable truck insurance. - read more
Allianz Australia has refreshed its farm pack insurance, with the updated product announced on 20 July 2026. For farmers and rural property owners, the significance is less about one insurer changing a product and more about what it signals across the broader farm insurance market: insurers are trying to make cover easier to understand while adjusting policy features to better match modern farming operations. - read more
Fresh analysis of APRA’s latest National Claims and Policies Database has added useful detail to the current professional indemnity insurance conversation. The database, released in early July 2026, covers professional indemnity, public liability and product liability policy and claims information, giving insurers, brokers and business owners a clearer view of how different parts of the liability market are moving. - read more
The debate over Australia’s draft Insurance Brokers Code of Practice has intensified, with industry and consumer voices questioning whether the proposed changes go far enough on remuneration disclosure and conflict management. For real estate agencies, the issue is not abstract. Many agencies rely on intermediated advice when arranging professional indemnity, public liability, management liability, cyber cover, office insurance and commercial motor policies. - read more
A recent Australian travel insurance case has offered a sharp reminder that the most expensive travel risk is often the one no traveller expects. According to Finder, an Australian woman who became seriously ill while 19 weeks pregnant in Mallorca faced medical costs of more than $40,000 after being taken to hospital by ambulance. The ambulance component alone reportedly reached $12,000, with the remaining costs linked to hospital admission, testing and treatment. - 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
Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
Exploring the realm of health insurance can be like navigating a labyrinth, replete with complex terms and varying policies. Among these, health fund rebates emerge as a crucial element, particularly for young Australians embarking on their journey of health coverage. Fund rebates can significantly lighten the financial burden, transforming the quest for health insurance from daunting to empowering. - read more
The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - 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
Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
No comments yet. Be the first to share your thoughts.