A homeowner who thought she had arranged home cover with her bank but hadn’t will have half her claim paid after a fire, following an Australian Financial Complaints Authority (AFCA) ruling.

AFCA says the bank provided the complainant with a home loan, as well as quotes for home insurance and mortgage protection insurance.

The complainant believed the bank had set up “all the insurances” and noticed monthly deductions on her statements.

In fact, home cover wasn’t in place, AFCA says. The deductions were for two separate mortgage protection policies.

The property subsequently suffered fire damage and when the complainant tried to lodge a claim, it was declined.

“The bank argued that while it provided quotations, the complainant was ultimately responsible for taking out home insurance and was clear that there was no policy in place,” AFCA says.

It found both parties were at fault and decided the bank should be liable for 50% of the complainant’s loss.

“The bank failed to comply with its internal policy and good industry practice, which required it to ensure there was adequate insurance over the property,” the determination says, while noting the complainant “failed to take reasonable care to protect her own interests”.

From October 1 AFCA will begin naming financial firms in its determinations.