A homeowner who claimed for damage from stormwater run-off has fallen foul of a flood exclusion in her policy after a dispute before the financial services ombudsman.

The owner and Lloyd’s agreed the home was damaged by rainwater run-off on March 9 last year, but the insurer pointed to a policy clause stating it would not cover loss caused by rainwater run-off when a flood also occurred within the same 48-hour period and its level exceeded the rainwater run-off.

The insurer appointed a hydrologist who reported the property was on low-lying ground close to a creek. A torrential downpour struck on March 9.

Expert reports identified possible sources of inundation at the property, and an AFCA ombudsman says that “on balance, I accept that the water that damaged the property included a mixture of floodwater from the creek and stormwater run-off”.

While the ombudsman accepts the householder has a claimable loss under the policy, the insurer has shown the peak level of the stormwater runoff was 0.2 metres, while the peak level of water from the flooded creek was 0.6 metres.

“I accept that the insurer has shown that a flood has occurred under the policy within a 48-hour period of stormwater run-off.”

Read the ruling here.