A Victorian man pursuing legal action against Suncorp brand AAMI after his house fire claim was denied for not disclosing a “side hustle” business has resolved the matter.

Justin Uebergang and his partner awoke two years ago to find their home on fire due to an electrical fault. He said he had paid around $2000 a year for five years for home and contents insurance.

AAMI denied the claim because the couple had failed to disclose they sold eggs at their farm gate. The couple said they had been receiving around $70 a week via an honesty box. 

The insurer had asked whether a business was operated at the insured address before issuing the policy, and the couple – who had a registered ABN, signage and a Facebook page for the venture – answered no. AAMI says it would not have issued the policy if they had disclosed the egg sale operation.

Law firm Maurice Blackburn tells insuranceNEWS.com.au the case has been settled.

“Our clients are pleased the matter has resolved and they can move on with their lives,” Principal Lawyer Hayriye Uluca said. 

Suncorp also confirmed an agreement was achieved earlier this year. 

“We are unable to comment further,” a spokesperson told insuranceNEWS.com.au.

A number of media reports emerged last year of home and contents policies being cancelled or claims denied on grounds that clients were running income-generating side businesses or hobbies from their properties. 

In some of cases mentioned in ABC News articles, consumers said they were informed by their insurers that their policies would be cancelled because of the risk involved.

Insurers have previously said home insurance policies are underwritten and priced for the risk of a domestic private home. 

When a business is being run out of the home, it could represent a significantly different risk, for example greater probability of theft or fire.

Any business that has employees or customers coming to the home would also attract a risk for liability claims arising from slips and trips that wouldn’t otherwise occur in the same way on a normal home policy.