A recent ruling from the Australian Financial Complaints Authority (AFCA) is a timely reminder that not everything sitting on your property is automatically covered by your home insurance, even if it was stolen from your own backyard.
So, What Happened?
A homeowner lodged a claim in December after five and a half rolls of copper wire were stolen from their property. The insurer declined the claim, and the matter went to AFCA for review.
According to the insurer, the homeowner had originally purchased the wire for solar panel installation at another property. Some of it had already been used for garage and solar connections on the insured home, but the remaining five rolls were being kept for a separate solar project elsewhere, expected to use around half a roll.
Why Was the Claim Declined?
The homeowner’s policy, like most home and contents policies, drew a clear line between “contents” and building materials that aren’t yet part of the home. Items such as unfixed building materials and uninstalled fittings were specifically excluded from the policy’s definition of contents, while items considered “part of the home” were generally those fixed or attached to the property.
The copper wire fell into neither category cleanly. It wasn’t fixed or installed at the insured home, and its future use was unclear. Some of it was destined for a different property altogether, and the homeowner hadn’t settled on exactly how much would go where.
As the AFCA ombudsman put it, copper wire can be part of a home once it’s fixed or attached, but loose rolls with no clear, settled purpose don’t qualify as contents or as part of the home under the policy wording. Being stolen from the property wasn’t enough on its own to bring the wire into cover.
Takeaway for Homeowners
This case highlights a coverage gap that catches many people off guard: materials you own and store on your property aren’t automatically treated the same as your household contents or the fixed structure of your home.
If you keep spare building materials, tools, or fittings on-site for a future project, particularly one intended for another property, it’s worth checking exactly how your policy defines “contents” and what falls under any unfixed materials clause. Cover often depends on whether an item is fixed, installed, or has a clear and specific intended use for the insured property itself.
Where materials are being stored for an extended period, or destined for somewhere other than your own home, separate cover or a clear paper trail of intended use can make a real difference if something goes missing.
As always, if you’re unsure whether your current policy would respond to a claim like this, it’s worth a conversation with your broker before you need to find out the hard way.
For More Information
LML Insurance Group
Phone: 08 6383 2000
Email: admin@lmlinsurancegroup.com
This article is based on a published determination from the Australian Financial Complaints Authority, as reported by InsuranceNews.com.au.
Ombudsman sides with insurer after crooks make off with copper – Insurance News – insuranceNEWS.com.au
This blog contains general information only and is not advice specific to you.