When an Insurance Denial Points You Toward a Stronger Legal Claim

Your insurance denial might be pointing you toward a better legal claim that insurance won’t cover…

Because it’s a “defect”!?

That insurer denial letter might actually be revealing your strongest recovery path. It just depends on the reliability of the expert evidence.

Here’s what I see regularly in property damage matters:

• The reason insurers decline is often the reason builders or another building practitioner is liable; or
• Even that a water act claim is available against a neighbour or owners corporation.

When an insurer says “NO” and damage stems from say defective workmanship, faulty plumbing, or inadequate waterproofing - they’re identifying the very grounds for a building warranty claim or a claim under the Water Act.

Three paths worth investigating when insurance falls short:

Building warranty claims: Defects in residential building work can trigger statutory warranties that survive for 10 years in Victoria from the date of the occupancy permit. Owners corporations especially pay for repairs themselves when a viable claim against the builder exists.

Plumbing defect claims: The Licensed Plumbers General Insurance Order creates specific avenues for recovery that many property owners overlook entirely.

Water Act claims: When water damage originates from neighbouring land or infrastructure, separate statutory rights may apply.

Property damage recovery has become genuinely specialist work. The overlap between insurance law, building law, and statutory water rights means the answer isn’t always where you first look.

Building practitioner professional liability: When errors arise because of building professionals this can mean professional indemnity insurance can potentially pay out.

But remember that errors don’t always amount to negligence! You also need to establish a duty of care. However, this can provide a viable recovery against an engineer, architect, building surveyor or non-building professionals like real estate agents, strata managers or insurance brokers.

Getting RECOVERY right in property damage law, starts with getting the right evidence and advice.

If you have a property damage you may have a property damage claim, speak to the experts in property damage law at Brockhill & Usherwood Lawyers.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• insurance law
• property disputes
• building law
• professional liability
• litigation