Insurance Claim Rejected!
If you feel you are being bullied in a dispute or not making progress; then ask for help:
- Commonwealth Ombudsman
- Victorian Ombudsman
- Energy and Water Ombudsman
- Public Transport Ombudsman
- Finance Ombudsman
- Credit Ombudsman Service Limited
- Private Health Insurance Ombudsman
- Telecommunications Industry Ombudsman
A friend of mine last year had a BIG problem with the tenants living in one of his rental properties. The tenants on the lease had a falling out with each other and decided to sub-let the property without his … or the Property Manager’s knowledge.
The new tenant was unfortunately a drug addict, and it didn’t take long for the situation to completely spiral out of control. They smashed windows , kicked in doors, destroyed the carpet and of course they stopped paying the rent.
Luckily my friend had Landlords Insurance and everything would be covered, or so he thought. When he lodged his claim, the insurance company rejected it … all twenty eight (28) line items of damage.
“They said it was POOR HOUSE KEEPING … and that the policy only covers MALICIOUS DAMAGE.”
He was VERY angry, so he escalated the claim. The insurance company sent out a second team of assessors, and once again, they rejected his claim
This went on for nearly six (6) months, and caused him a LOT of STRESS! Up until this point … he felt HELPLESS … and BULLIED by the insurance company.
So I told him to contact a little known and FREE legal resource called The Financial Rights Legal Centre who operate the ‘Insurance Law Service’.
They were a LOT of help, and explained how he could resolve his problem. They suggested as the next step to contact the Finance Ombudsman who controls the insurance industry.
The Finance Ombudsman said that if he lodges a formal complaint against his insurance company, the process will take approximately twelve (12) months … but the insurer will have to pay all the legal fees.
Note: Regardless of the outcome, my friend WOULDN’T have to pay a cent!
At the end of the process, the Finance Ombudsman will make a binding ruling that the insurance company HAS to abide by.
When my friend told the insurance company that he would be making a formal complaint to the Finance Ombudsman, they quickly changed their mind. The insurer paid his original claim for twenty eight (28) line items of damage in FULL, plus six (6) months of lost rent.
Why? … Because they KNEW they would have to pay ALL the legal fees, and ultimately be told to pay the genuine claim anyway.
The Financial Ombudsman Service (FOS) provides accessible, fair and independent dispute resolution for consumers and financial services providers.
If you find yourself in a dispute with your ‘Insurance Company’ because they:
- denied the claim
- accepted the claim but failed to provide you with what you are seeking; or
- refused to make a decision because it’s investigating the claim
Contact the FOS … they will fight your battles for YOU!
After you lodge a complaint, the process will take approximately twelve (12) months, and:
- your insurer pays ALL the legal fees
- FOS can make a BINDING ruling
Most disputes related to properties are avoidable when you’re smart, and empower yourself with as much knowledge as you can BEFORE a project starts, however if you do run into an issue that you can’t resolve.
Module 24 includes 80 pages of detailed information plus a ‘Quick Reference Guide’ to help you get back on track … Hybrid Renovating ™