A woman claiming a branch fell on the roof of her cabin during a storm, blocking the gutter and causing water to spill into the home, has lost a dispute with QBE after a longstanding termite infestation was detected.

The woman, who held landlord insurance with QBE, owned a portable cabin situated on her property which was tenanted. The home was in a dilapidated state, with significant wood damage consistent with invasive termite activity, including in the ceiling areas.

In January last year, she lodged a claim for storm damage which she blamed on a tree branch falling on the roof.

QBE organised an inspection of the home and declined the claim. Several experts determined the property was in a poor state prior to the storm, one finding a collapsed plasterboard ceiling was due to the termite damage prevalent throughout.

The Australian Financial Complaints Authority (AFCA) determined the home was unable to withstand the storm conditions due to termite damage and upheld QBE’s decision to deny the claim.

“The effective cause of the loss was the termite infestation which weakened the building’s structure and meant it failed during the storm,” AFCA said.

“Water would not enter a properly secured structure in the absence of a distinct intervening cause or event. In this instance, I accept this cause was the compromised condition of the property due to termite damage.

“Given damage caused directly or indirectly by insects is excluded under the terms of the policy, I am satisfied it is fair QBE is not liable for the damage.”

QBE’s application of the policy – which excluded losses caused directly or indirectly by vermin or insects - was fair in the circumstances, AFCA said, and no award of compensation was appropriate.

“The insurer generally handled the matter fairly and reviewed and denied the claim in a timely fashion,” the ruling said.

AFCA said there was “ample evidence” to show the condition of the home prior to the storm was the dominant cause of the loss and the reason for water entry was the existing damage to the home caused by termites, which was extensive in nature and left it vulnerable to water infiltration.

The considerable termite damage left the home structurally vulnerable, AFCA said, and the effect of a heavy storm was enough to permit water to enter the property.

The woman said the presence of termite damage did not render the roof incapable of stopping water and provided a photo of a tree branch on the roof.

“I accept this should be the case but the termite damage in this instance was extensive. I am satisfied it was the termite damage which allowed water to enter the home,” AFCA’s ombudsman said.

“I do not consider the storm was the cause of this damage, merely the last straw that permitted water entry. The extent of long-term termite damage to the home left it structurally deficient and unable to keep water out.”

See the ruling here.