Suncorp has been told to pay the full agreed value of a Ford Ranger Raptor that was damaged after being partially submerged in flood waters last year.

The insurer accepted the claim but said the vehicle could be repaired at a cost of $32,688.

However, the claimant took the case to the Australian Financial Complaints Authority (AFCA), which found that the insurer must declare the vehicle a write-off and pay the agreed value of $88,500.

AFCA says Suncorp must also pay $4,500 in compensation because its “mishandling” of the claim left the driver without the use of his car for more than a year and caused “an unusual degree of stress, inconvenience, and delay”.

AFCA says the insurer’s notes show that the man tried to drive through a water hazard. Water entered through the car doors and the vehicle sat in the water for five to ten minutes before it was winched out.

The vehicle was towed to the insurer’s repairer which determined that it was repairable.

But the man disagreed, saying it should have been assessed as a write-off, and AFCA agreed, finding that the insurer did not account for the possibility of hidden damage.

“The complainant‘s car was inundated with water. Water inundation can cause severe damage, destroying electrical components and corroding metal,” the AFCA ombudsman said.

“Water can seep into inaccessible parts of the car, causing damage that would be easy to miss during an initial inspection.

“The insurer says it was confident that there would be no hidden damage. Given the nature of the damage, I think this confidence was misplaced.

“The insurer should have assessed the car as a total loss, and settled the claim accordingly.”

Click here to read the full determination.