A policyholder in his 80s whose home was wrecked in devastating Christmas Day storms has won a claim dispute after his insurer started repairs, then changed its mind. 

The customer lodged a claim with Allianz, stating his home was “extensively damaged” by more than 200km/h winds on December 25 2023.

He said the damage included structural movement of the upper level, blown out windows and doors, water ingress and fencing hit by toppled trees.

The insurer accepted the claim and started repairs, but it “revised its position” after receiving additional expert evidence. 

The Australian Financial Complaints Authority says the insurer’s builder initially said damage was caused by the storm and was not related to “defects or maintenance issues”.

But after the upper-level wall and ceiling linings were partially stripped out, an engineer said movement to the upstairs living area was “attributed to long-term deterioration”.  

The engineer also questioned reported wind speeds, referring to Bureau of Meteorology recordings of no more than 150km/h.

The insurer decided the disputed damage was excluded and offered $41,927 as a cash settlement for the rest.

However, the complainant’s own engineer said the damage was typical of an “intense high-wind event”, and the man provided photos and a video of the storm.

“The complainant maintains that wind speeds reached 204km/h,” AFCA said. “He notes his home is at the top of a ridge and was directly in the storm’s path. The wind was so strong that his bed was sucked out and found some distance away.”

The claimant wanted Allianz to cash settle for $428,340, based on a builder’s quote.

AFCA has ruled that the insurer must cover the disputed damage, because its engineer, who contradicted other experts, did not “satisfactorily disprove the storm as the proximate cause”.

It says the complainant and insurer should obtain new quotes and the insurer must pay the average of those quotes plus a 15% uplift.

It must also provide additional temporary accommodation, and pay the maximum $6300 in non-financial loss compensation for its “unreasonable claim handling”.

“The complainant and his wife are both in their 80s and vulnerable,” AFCA says. “They have multiple health issues and require regular in-home aged and healthcare support.

“The fact that they have been out of their home and forced into temporary accommodation for 18 months has complicated obtaining the support they rely on.”

See the full ruling here.