Turning the Tide Part 7 Deeds of Release Sometimes an insurance company will pay part of the claim but will ask you to sign a document releasing the insurance company from any further liability. This is so you agree not to pursue any claims in respect of further loss. This document is often called a Deed of Release. If an insurance company asks you to sign a Release, you should read it very carefully and ensure that you are satisfied with the agreement before signing it. Depending on the circumstances in which the Release was signed, you may still be able to pursue further claims under the policy. This would particularly be the case where the document was signed: in a situation where you thought you had no choice or it was the only way to get money when you needed it when you did not understand the effect of the document they were signing when additional claims were anticipated by the insurance company Case Study Where the Deed of Release did not prevent further claims In Decision 94-1143, the insurance company agreed to pay a claim for water damage to the consumer’s carpet, but asked the consumer to sign a Release which stated the insurance company was not liable for any further claim under the policy. However, the consumer made a further claim under the policy, which was rejected. The consumer stated that he had signed the Deed because the insurance company had withheld payment on the replacement of the carpet until he agreed to sign, and the smell from the wet carpet made his house unfit to live in. The Panel found the insurance company could not rely on the Release for two reasons. First, the later claim was genuine and was for damage not apparent at the time of the first claim. Secondly, the release was signed when the consumer was under considerable duress because of the pressure to get the carpet replaced as quickly as possible. The Panel therefore decided that the insurance company had to pay the later claim. Dealing with assessors Assessors are employed by insurance companies to investigate claims. While you should cooperate with them, it should be remembered that their role is to ensure that all possible reasons for refusing a claim have been examined. If an assessor asks you to sign a statement you should ask them if you can take it away and look at it, rather than signing it on the spot. Consumers have complained about assessors asking them to sign documents which include a statement that the damage was caused by floodwater. These statements are of little effect in law, as the question of causation is a factual issue, not a matter of opinion. Consumers should not be discouraged from pursuing a claim as a result of having signed such a document. Getting repairs done This Guide does not offer specialist advice in relation to repairs. However: n You should be careful in selecting contractors to do repairs. Unlicensed and itinerant builders, roof painters and repairers can appear on the scene after a flood and offer their services. They may do an inadequate job which has to be fixed up by another tradesperson or they take money upfront and not do the job. The NSW Department of Fair Trading should be able to assist in advising whether or not a person is licensed. You should consult your insurance company or obtain professional advice in relation to repairs. Owners who begin to repair or replace damaged materials before their houses have properly dried may face higher costs later if some of the work has to be done again. The Insurance Council of Australia has a pamphlet about repairs which it will send out on request. The insurance company cannot insist that repairs wait until it has seen the damage or given its approval. If the insurance company refuses to allow repairs to be done, the consumer should take photographs and make a written record of the damage before commencing work. Problems with insurance brokers Where the policy was arranged by an insurance broker (rather than you dealing directly with the insurance company) then other issues apart from those already dealt with in this Guide may arise. In particular, if the loss was due to some negligent conduct on the part of the broker you may be entitled to pursue a claim against them. Examples may be: where you specifically asked the broker to organise insurance against flood, the broker failed to do so and did not advise you of this where you did not have an insurance policy covering you for loss, due to an unreasonable delay by the broker, and you would have been able to claim under the policy if it was in place. Complaints with insurance brokers can be taken to an alternative dispute resolution scheme. This scheme is called the Insurance Brokers Association Dispute Facility. Turning the Tide part 1 : how to use this guide part 2 : what does the policy say? part 3 : where the policy is confusing or you did not get a copy part 4 : what caused the damage? part 5 : getting organised part 6 : what if the claim is rejcted? part 7 : other issues contacts

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The information contained on this page is not legal advice. If you have a legal problem you should talk to a lawyer before making a decision about what to do. The information on this page is written for people resident in, or affected by, the laws of New South Wales, Australia only.