QBE says it is doing its “utmost” to support a Gold Coast couple who moved into their new house and discovered a few months later the property was infested with termites - even though it didn't insure the home.

The insurer was criticised over its handling of the matter in a segment aired on Monday night by A Current Affair, with one customer advocate firm accusing it of being a “heartless insurance company”.

The TV program reported that QBE offered the couple half of what builders have quoted the cost would be to repair the damage, but the insurer has clarified that it insures a building inspection firm that examined the property prior to purchase.

“QBE is the insurer for the building inspection company, not the [owners of the property],” a company spokesman told insuranceNEWS.com.au today.

“However we are doing our utmost to assist the family and we recognise this has been a very distressing experience for them.

“We are in active negotiations with [the couple] and we hope to be able to reach a mutual settlement decision soon.”

insuranceNEWS.com.au understands that while QBE's position is that its client's liability is limited, and that its client warned that access was limited and further inspections were needed, it decided on a "good faith" payment which it believes will cover the total cost of a professional repairing the damage to the property.

But the offer was not acceptable to the couple, and so negotiations are continuing.

QBE is also understood to have negotiated in good faith an additional six months in rental payments as part of the current settlement offer. Its position is that there has been no discussion that current rental payments will be ceased while active negotiations are still taking place.

The TV program reported claims that QBE had stopped giving the couple rental aid until they accepted the settlement offer.