Homeowners Allege Insurance Companies Failing to Cover Plumbing claims despite Ministerial Order
melbourne, Australia – Victorian homeowners are claiming insurance companies are failing to fully cover plumbing works despite a 2002 ministerial order intended to protect them from defective plumbing, a report and recent parliamentary statements reveal.
Bronwyn Weir, who authored a report on the issue, says her advice to the government to ensure plumbing insurance products comply with the ministerial order - and that consumers aren’t unfairly treated by insurers – has not been addressed after a year. The order aims to ensure homeowners aren’t left with crippling debts when plumbing work fails due to defects.
“I think this is potentially, allegedly, quite serious conduct by insurers, and there needs to be somebody, a regulator, that is responsible for holding them to account … I’d be disappointed if nothing’s happening,” Weir told the ABC.
Her report highlighted seven cases, stating thay represent only a fraction of the problem. Weir found insurers were often claiming policies complied with the ministerial order while concurrently limiting payouts or denying claims inappropriately.
Victorian MP Anthony Cianflone recently brought a constituent’s case to parliament, detailing $270,000 in required plumbing repairs. ”But [the insurance company], Suncorp, have only continued to offer [his] family a $50,000 payment to cover the defective works, as they claim that is the maximum amount they are obliged to pay,” Cianflone stated.
Cianflone also called for a review and modernization of the 2002 order, noting notable increases in building and plumbing costs as its implementation. “We certainly know the average cost of building a new home and undertaking plumbing works have significantly increased as 2002,” he said in a statement to the ABC.”The order also deserves to be reviewed and modernised in line with 2025 building costs and standards.”
