A policyholder, whose claim for fire damage was rejected because her insurer says she didn’t disclose that the house was unoccupied, has won an insurance payout.

The homeowner lodged a claim under her home insurance policy in December 2021.

But Auto & General says she breached her duty of disclosure and it would not have offered renewal terms if informed of the changed risk of an empty property.

The insurer cancelled the home insurance policy and denied the claim.

But the homeowner took the matter to the Australian Financial Complaints Authority (AFCA) saying she disagreed with the insurer’s contention the property was and remained unoccupied.

The insurer says she should have told them if the property was going to be unoccupied for more than 60 days.

The woman argued she and other people were sleeping over at the property from time to time.

An insurance investigator spoke to the woman who provided a residential address in the same suburb as the one insured.

She provided photos taken before and after the fire showing the property was furnished, there were clothes in the wardrobes and on a drying rack, and framed photos on benches. In addition, she has submitted photos taken at various family celebrations held at the house.

AFCA was told that on September 3, 2021, the woman rang the insurer to pay for the policy’s renewal. The recording of the call confirms a verbal duty of disclosure notice was provided. The complainant was not asked any specific questions about occupancy, although she volunteered that she did not live at the property.

AFCA ruled that the insurer had not provided persuasive underwriting evidence to support its decision.  It was “on balance satisfied” that the complainant and others were sleeping at the property from time to time.

“Furthermore, even assuming there was a breach of the duty of disclosure, I am not satisfied that the insurer has proven it would not have offered renewal terms. In the circumstances, I am not satisfied that the insurer was entitled to cancel the policy and deny the claim based on the alleged breach of the duty of disclosure."

Click here to see the full ruling.