
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Of the 29,085 home insurance claims rejected between 2017 and 2018, 17,639 were denied due to damage caused by wear and tear, according to a report by the Code Governance Committee. Considering that accounts for over 60% of rejected claims, it's worth knowing how to avoid wear and tear in home insurance.
Wear and tear can include anything from gradual deterioration, rust and corrosion to deterioration from exposure to light. It essentially protects the insurer from having to pay for things in your home that have broken or become damaged because you have not maintained them properly. Common exclusions related to wear and tear in home insurance can include:
Even if a storm or flood were to severely damage say, your old, deteriorating roof, your insurer is likely to deny any claim made due to wear and tear. The argument is that in order to be eligible for home insurance protection, you must properly maintain, repair and replace any defective area of your home (the insured property).
Wear and tear is generally excluded from home insurance policies because it is deemed inevitable. That's because insurance is there to protect you from unforeseeable damage and losses like storms, floods and other accidents.
Parts of your home, on the other hand, will inevitably deteriorate over time. It's therefore your job to make sure they are properly looked after, not your insurers.
If your home insurer rejects a claim you've made because of "wear and tear", you can ask that your case to be reviewed. All insurance companies need to have their own internal dispute resolution system. To help resolve the dispute in your favour, the following evidence can help:
If, after an internal review, you're still not happy with your insurer's decision, you can take your claim through the approved external dispute resolution process. The Australian Financial Complaints Authority will then review your claim and make a decision. If this still doesn't go in your favour, you might want to seek legal help.
To minimise wear and tear in your house, there are a few things you can do.
Picture: GettyImages
Engines aren’t the only thing overheating on the roads this summer – our tempers are too, according to new research by Finder, Australia’s most visited comparison site.
Steam mops are an effective way to clean your floors and other parts of your home. Find out how to compare models and choose the right one for you.
Find out how much veneers cost in Australia and how you can avoid being hit with a big bill.
Find your perfect home on wheels with campervan rentals in The Harbour City.
Find out how much the average Mercedes-Benz E-Class costs to insure, as well as how to find a prestige car insurer.
Your comprehensive guide to starting an asbestos removal company.
Find out who your electricity distributor is in Victoria.
Find out how to start a baby proofing business and run it from home in this guide.
Do you love working with animals? Find out how to start your pet sitting business.
Your guide to home loan LVRs and how you can determine your loan to value ratio.