The therapist's wellness business, situated on the second floor of a property, suffered extensive water and mould damage following severe weather events. Initially, her insurer, Chubb, denied the claim, citing the absence of optional flood cover in her policy. However, the therapist argued that the damage resulted from stormwater ingress through balcony doors, not from ground-level flooding.
Upon review, the Australian Financial Complaints Authority (AFCA) determined that multiple factors contributed to the damage. The panel concluded that it was more likely than not that water entered through the balcony doors during the storm, leading to carpet saturation and subsequent mould growth. Consequently, AFCA ruled that Chubb should cover 30% of the claimed loss, proportionate to the damage attributed to stormwater ingress.
This decision highlights the importance for beauty professionals to thoroughly understand their insurance policies, especially regarding exclusions and optional covers. Ensuring comprehensive coverage can safeguard against unforeseen events and potential disputes.
For beauticians, this case serves as a reminder to:
- Review insurance policies regularly to understand coverage and exclusions.
- Consider adding optional covers, such as flood insurance, to mitigate specific risks.
- Document all incidents meticulously to support potential claims.
By proactively managing insurance policies, beauty professionals can better protect their businesses from unexpected challenges.
