Challenge
A business owner faced significant property damage after a major rain event revealed two unforeseen issues:
- Faulty Construction: Missing waterproof sarking in a section of the roof, leading to water ingress and visible damage such as ceiling stains and discolouration.
- Vermin Damage: Rats had chewed away pipe insulation, causing condensation to drip onto the ceiling and result in further water damage.
Unfortunately, their policy excluded damage caused by faulty workmanship and vermin, leaving the owner with extensive repair costs and no immediate coverage.
The business owner avoided bearing the full financial burden of the repairs, with the discretionary decision ensuring their ceiling was repaired and the property could return to safe operation.
Solution
While these exclusions are standard in insurance policies, the Discretionary Trust team assessed the situation with empathy. After a thorough review, a discretionary decision was made to assist the member by covering part of the repair costs. Specifically:
