A policyholder has lost a complaint over the sum offered for storm-damaged ornaments and statues made by her late husband after it was determined the insurer’s proposed settlement was fair and it was not required to take sentimental value into account.

Suncorp offered $4100 under a home and contents policy to cover outdoor items damaged during a storm in October last year. Other features in the garden included a wall, "fancy panel" and concrete wishing well.

The policyholder sought $22,000 and took the issue to the Australian Financial Complaints Authority (AFCA) as the ornaments and statues were handmade by her late husband, using special rubber and fibreglass moulds that were made in Italy and couldn’t be replaced in Australia. The sum requested included the cost of re-constructing the moulds and $10,000 for the wishing well.

AFCA says the art, sculptures, ornaments and art objects part of the policy sets a $2000 maximum for each item and requires proof of value. The insurer may repair damaged contents or replace “new for old”.

A hand-written list of items and values provided by the policyholder was not considered compelling evidence of their value or replacement cost, and there was no suggestion from a quote provided that the wishing well needed total replacement or that it would cost $10,000.

There was also no evidence to show the moulds had been damaged by an insured event, and that cost didn’t come under the terms of the policy, the determination says.

AFCA says it appears the ornaments had been produced as part of the family business, and the complainant had more recently submitted that equipment, products and moulds had been stolen, but the policy is for home and contents and is not stated as covering business losses.

The insurer offered a settlement amount supported by independent evidence, and which, on balance, represented the cost of replacing or repairing the damaged items, and which was “fair and reasonable”, the decision says.

“While it is clear the damaged items were understandably of special importance to the complainant, the insurer is not liable for any additional amounts to allow for sentimental value,” AFCA says.

“Nor is it fair that the insurer be required to cover new moulds needed to recreate the damaged items.”

The decision is available here.