Browse Forums DIY, Home Maintenance & Repair 1 Dec 13, 2023 2:36 pm So an quick summary - the underground consumer main on our house shorted on the weekend due to water ingress into the conduit, after heavy rains (50+mm in three days). We paid an electrician to fix it - he dug it up and found that the water ingress was due to poor workmanship by the original electrical contractor - the conduit wasn't properly joined (two pieces of different diameter just shoved together with no glue or adaptor), which is also non-compliant to Australian Standards. The insulation failure was gradual, until it reached the point where it blew the service fuses and was discovered. Despite an initial statement from our home insurer (SGIC) that this was covered under storm damage, they are now refusing our claim, since the root cause was faulty workmanship by the builder. The original builder was Fairmont Homes, in 2002. I am now $8K+ out of pocket, since the insurer won't cover it. This is clearly a latent defect that could not have been discovered during inspection since it was underground. The work was non-compliant and very poor workmanship. Do I have any recourse against Fairmont, even though the original warranty period has passed? Re: Repair of 20yr old latent defect (SA) 2Dec 13, 2023 3:58 pm NotHappyJack So an quick summary - the underground consumer main on our house shorted on the weekend due to water ingress into the conduit, after heavy rains (50+mm in three days). We paid an electrician to fix it - he dug it up and found that the water ingress was due to poor workmanship by the original electrical contractor - the conduit wasn't properly joined (two pieces of different diameter just shoved together with no glue or adaptor), which is also non-compliant to Australian Standards. The insulation failure was gradual, until it reached the point where it blew the service fuses and was discovered. Despite an initial statement from our home insurer (SGIC) that this was covered under storm damage, they are now refusing our claim, since the root cause was faulty workmanship by the builder. The original builder was Fairmont Homes, in 2002. I am now $8K+ out of pocket, since the insurer won't cover it. This is clearly a latent defect that could not have been discovered during inspection since it was underground. The work was non-compliant and very poor workmanship. Do I have any recourse against Fairmont, even though the original warranty period has passed? Probably not against the builder, but the insurer is acting in bad faith. You should tell the insurer that they're acting in bad faith and if they don't honour the claim you'll raise ethe issue with AFCA. I suspect AFCA will side with you on this. Re: Repair of 20yr old latent defect (SA) 3Dec 13, 2023 6:10 pm ponzutwo NotHappyJack So an quick summary - the underground consumer main on our house shorted on the weekend due to water ingress into the conduit, after heavy rains (50+mm in three days). We paid an electrician to fix it - he dug it up and found that the water ingress was due to poor workmanship by the original electrical contractor - the conduit wasn't properly joined (two pieces of different diameter just shoved together with no glue or adaptor), which is also non-compliant to Australian Standards. The insulation failure was gradual, until it reached the point where it blew the service fuses and was discovered. Despite an initial statement from our home insurer (SGIC) that this was covered under storm damage, they are now refusing our claim, since the root cause was faulty workmanship by the builder. The original builder was Fairmont Homes, in 2002. I am now $8K+ out of pocket, since the insurer won't cover it. This is clearly a latent defect that could not have been discovered during inspection since it was underground. The work was non-compliant and very poor workmanship. Do I have any recourse against Fairmont, even though the original warranty period has passed? Probably not against the builder, but the insurer is acting in bad faith. You should tell the insurer that they're acting in bad faith and if they don't honour the claim you'll raise ethe issue with AFCA. I suspect AFCA will side with you on this. Can you explain that a little better for me? The PDS for the policy states that they don't cover loss or damage from "faulty design or workmanship". I've now got conflicting information from the Office of the Technical Regulator (OTR) who says that while the installation was non-compliant to standards, water ingress was unlikely to have caused the fault because 20yr old conduits often have water in them anyway even if they are properly constructed. He thinks the fault couldn't have occurred unless the cable had previously been overloaded due to oversized breakers, or undersized cable. Re: Repair of 20yr old latent defect (SA) 4Dec 14, 2023 8:49 am NotHappyJack ponzutwo NotHappyJack So an quick summary - the underground consumer main on our house shorted on the weekend due to water ingress into the conduit, after heavy rains (50+mm in three days). We paid an electrician to fix it - he dug it up and found that the water ingress was due to poor workmanship by the original electrical contractor - the conduit wasn't properly joined (two pieces of different diameter just shoved together with no glue or adaptor), which is also non-compliant to Australian Standards. The insulation failure was gradual, until it reached the point where it blew the service fuses and was discovered. Despite an initial statement from our home insurer (SGIC) that this was covered under storm damage, they are now refusing our claim, since the root cause was faulty workmanship by the builder. The original builder was Fairmont Homes, in 2002. I am now $8K+ out of pocket, since the insurer won't cover it. This is clearly a latent defect that could not have been discovered during inspection since it was underground. The work was non-compliant and very poor workmanship. Do I have any recourse against Fairmont, even though the original warranty period has passed? Probably not against the builder, but the insurer is acting in bad faith. You should tell the insurer that they're acting in bad faith and if they don't honour the claim you'll raise ethe issue with AFCA. I suspect AFCA will side with you on this. Can you explain that a little better for me? The PDS for the policy states that they don't cover loss or damage from "faulty design or workmanship". I've now got conflicting information from the Office of the Technical Regulator (OTR) who says that while the installation was non-compliant to standards, water ingress was unlikely to have caused the fault because 20yr old conduits often have water in them anyway even if they are properly constructed. He thinks the fault couldn't have occurred unless the cable had previously been overloaded due to oversized breakers, or undersized cable. The intent of that sort of clause is being misaaplied. its suposed to be used to avoid paying out for things liek when you decided to do a reno yourself and the electrical work you did as an unlicensed electrician causes a fire or your house ends up flooding because your extension you built yourself didnt account for the roof catchment area and you overloaded your gutters with stormwater and it all came inside. Thats what the clause is for. You would have had zero idea of any of teh workmanship and in good faith have purchased a home that for all intents and purposes met code. You had no knowledge to teh contrary. Houses are built with defects hidden all over the place and yet insurances pay out. They've just found an out and are trying it on. There is zero way you would hav had control over the design or workmanship, and arguably the builders electrician that installed it would have provided a compliance certificate for teh work (i assume would have bene required back in 2002 also) - which states that the work is safe, complaint, meets standards etc. Just reach out to AFCA. Insurers gave a code of practice (general insurance code of practice aka GICOP). theyr obligated to act in good faith and fairly. This seems like they've take a binary decision without assessing the nuances situation - aka in bad faith. Insurance statistics show a large portion of claims that are rejected are approved on reassessment wither directly by the insurer of when AFCA become involved. Dont worry about the technical regulator, just go direct to AFCA. Trust me. Ive taken over 15 issues to them in my lifetime and and everyone of them has been resolved in my favour. Thae fact they were going to pay, and then flipped goes in your favour too. The other aspect of an AFCA complaint is that the insurer has to pay every time a complaint is brought to AFCA. There is an initial cost and then an escalating cost fthe longe rit takes to resolve. Often, its comemrcially more viable to pay the claim than argue their liability. So even if they are technically right, its often not worth their time and money to argue the point. Just contact AFCA. DIY, Home Maintenance & Repair Hi, I have an old fence/barrier made of treated pine logs bolted to plates and these are bolted to very large metal posts/girders. The plates and bolts are rusted through… 0 17063 Its the flashing and is normal. Some builders cover them up others just leave them handing. You can cover it up with an aluminium bracket or ask the builder. 7 11796 |