JOYCADIA UK

  A claimant whose home was inundated during heavy rain will be covered for his loss after the complaints authority rejected his insurer’s “broad interpretation” of an underground seepage exclusion. The homeowner said several rooms at his property, which was slightly below street level, flooded in February 2022 when a build-up of water topped a slab in front of a waterproofed wall. He said the water then entered below the wall. Records showed more than 700mm of rain fell in the area from February 23-27, across two significant downpours. Insurer IAG said the damage was due to waterproofing failures in the building’s western basement and northern wall.   Its appointed builder found water was entering under the skirtings of the building’s external wall and attributed the loss to waterproofing issues. The insurer then applied the home policy exclusion concerning damage “caused directly by ... the subterranean seepage of water, no matter how caused”.   The claimant appointed a...

  Capacity problems are affecting the higher end of the strata market despite rising premium rates over the past couple of years that have improved the outlook for insurers, a Brisbane broker says. Strata Insurance Solutions MD Tyrone Shandiman says the issues particularly affect buildings with property-associated covers of at least $300 million, and new capacity providers are needed in the market. “Currently, Chubb is the only player able to provide an insurance solution for these strata buildings offering 100% capacity. However, we’ve recently encountered challenges with their capacity,” Mr Shandiman told insuranceNEWS.com.au. The insurer reduced its capacity to 70% on one high-rise client in Brisbane and has declined to quote on several large buildings exceeding $300 million, he says, while options are limited for gaining co-insurance from other providers. “In Melbourne, we’ve faced similar challenges, with CHU, the largest strata player in the market, also declining to offer co...

  Los Angeles wildfire insured losses are expected to range from $US20-$US$30 billion ($32-$48 billion), with reinsurers picking up part of the tab, Gallagher Re says. The total, which remains a preliminary estimate as damage assessments continue, includes losses incurred by the private market and California’s last resort FAIR Plan. The scale of damage to high-value properties and other expensive assets suggests it is on track to become the costliest series of fires for the insurance industry. “The anticipated portion ceded to reinsurance may reach the mid to high single digit billions,” Gallagher Re says. “However, this is not expected to meaningfully erode capital and should be manageable for reinsurers.” Most of the losses are expected to stem from the Palisades fire, which is 27% contained, and the Eaton fire, which is 55% contained, according to the California Department of Forestry and Fire Protection. At least 27 people have died in the fires, which have destroyed thousands ...

  Coalition leader Peter Dutton has raised concerns about “uninsurable risks” on a visit to the Victorian tourist town of Halls Gap, which was hit by bushfires and associated disruption over the Christmas period. The Insurance Council of Australia says fires in the Grampians region from December 17 to January 6 resulted in about 134 claims, many of which relate to business interruption.  Local representatives and residents have complained about the  cost and availability of insurance , especially in relation to bushfire, and a community forum was held in Halls Gap on Wednesday, attended by ICA, the National Insurance Brokers Association and the Rural Financial Counselling Service. Federal MP for Mallee Anne Webster, introducing Mr Dutton, said businesses are the “lifeblood” of the region but “insurance is not stepping up and meeting the need of the community”. Mr Dutton said many businesses are “really concerned” about insurance. “If they don’t have disruption insurance, ...