A homeowner who lost her engagement ring after falling through her deck has been awarded $50,000 for the jewellery in a claim dispute hearing.

The woman, who held a home and contents insurance policy with IAG, had lodged a claim seeking $150,000, which she said was the replacement cost of the ring.

IAG declined the claim, saying the policy specifically excluded cover for valuable contents that are in the open air at the site.

“As the engagement ring was not lost or damaged inside the home, but rather lost while on the exterior deck that is in the open air at the site, coverage is not available in this circumstance,” IAG said.

The Australian Financial Complaints Authority (AFCA) determined the ring was covered.

“I am satisfied the deck was part of the house,” the AFCA ombudsman said. “The loss occurred at the home and not on the earth’s surface nor in the yard or garden. The deck was still part of the house, albeit in the open air.”

It said IAG should pay the homeowner $50,000, the amount she had listed her engagement ring for under valuable contents.

“The complainant says that the ring is worth $150,000, however she only specified it at $50,000. She is not entitled to receive more than that sum,” AFCA said.

AFCA also awarded the woman $1000 compensation for delay and inconvenience, noting IAG had told the woman to lodge a new claim under portable contents, which paid no more than $10,000 for an individual item.

“This was not correct. The insurer should have assessed the claim but instead delayed the claim for more than two years,” AFCA said.

“They had sufficient information to assess the claim under both heads. I consider this to be an unnecessary delay and inconvenience, and one that was easily avoidable.”

See the full ruling here.