The Australian Financial Complaints Authority has ordered RACQ Insurance to replace a home's roof and patio after finding the insurer failed to address faulty workmanship following a storm in 2020.  

The claimants said the insurer’s agent left items incorrectly installed, and that parts of the roof were leaky and there was ongoing water damage and mould inside the ceiling cavity and roof sheeting.  

They argued the insurer should remedy the issues by replacing the roof and anti-condensation sheeting, repairing internal plaster and removing the mould, in accordance with the findings of its roofing expert, referred to as CR.  

RACQ Insurance acknowledged the previous repairs had “quality issues” but said its appointed repairer rectified them.   

The insurer contacted several building experts in mid-2022 to report on the property’s condition. One builder observed minor defects and wear and tear issues unrelated to the claim but said the roof had been repaired to a “high standard considering the pitch and capping works”.  

But a building consultant who also inspected the site noted “multiple outstanding issues” with the roof, including poor flashing and capping installations, rusted roof sheets and mould growth. 

RACQ Insurance appointed more experts to report on the issues, and they identified water and mould damage inside the roof, with nearly 25% of the space affected by mould.  

A second building consultant said internal cracking appeared consistent with wear and tear and building movements, but noted the previous roof repairs could have exaggerated these issues.  

The complaints authority acknowledges that the insurer made efforts to investigate the issues but says it does not appear to have “satisfactorily repaired the damage arising from the original storm event”.  

“All experts found defects with the roof, mould in the roof cavity and damage to the patio,” the authority’s adjudicator said. “CR has provided the most recent expert report, having inspected the property in mid-2023. CR identified many of the same defects as the other experts, but CR recommended the roof and Anticon blanket be replaced to resolve these issues.”  

“On balance, I accept that rectification works are required to both the roof and the patio ... It follows that the insurer is liable to rectify the defective repairs and any resultant damage in accordance with the policy terms and common law.”  

RACQ must appoint a building expert and hygienist to prepare a scope of works, and an actionable quote within 21 days. It must pay the homeowner based on the quoted amount, plus 20% for contingencies.  

It is also ordered to pay the claimants $2500 compensation for non-financial losses after it was found to have given a delayed and inadequate response. 

Click here for the ruling.