Damage and defect, but not to a part of the property that was covered by insurance

Building warranties Home and building insurance

A wall at the end of Julie's garden was cracking, but the insurer said the wall wasn’t covered under her warranty. 

What happened

Julie made a claim on her insurance policy because a retaining wall at the end of her garden was cracking. The insurer inspected the wall and discovered that the cracks were caused by defective mortar.

Because the damage was caused by a defect, the insurer denied the claim saying the defect and damage were not covered by the warranty. 

Julie didn’t think this was right and made a complaint to insurer. Unhappy with the outcome, Julie approached us and referred her complaint.

What we said

We looked at the warranty terms. They said that damage to a retaining wall was covered if the wall was necessary for the structural stability of the building.

As the retaining wall was at the end of Julie’s garden, it wasn’t necessary for the structural stability of her home. So we didn’t think the insurer was unreasonable in denying the claim and we didn’t uphold Julie’s complaint.