Undisclosed Tenant Activities Result in Denied Insurance Claim for Landlord
Importance of Accurate Tenant Disclosure in Property Insurance Policies
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In a recent case, a landlord's failure to disclose a significant change in tenant activities led to the denial of a substantial insurance claim.
The property, initially leased to a restaurant, began hosting weekly religious meetings on its upper floor without informing the insurer, AIG.
This oversight became a pivotal factor when the landlord filed a theft claim amounting to $99,295, which AIG declined due to non-disclosure.
At the inception of the policy in 2019, the premises were insured as a restaurant with wok cooking facilities. However, by 2023, the upper floor was being used for religious gatherings-a change that was not communicated to AIG. This non-disclosure was critical because, in May 2023, AIG updated its underwriting guidelines to classify religious institutions as 'outside appetite' due to increased fire risks associated with arson attacks.
The Australian Financial Complaints Authority (AFCA) reviewed the case and upheld AIG's decision to deny the claim. AFCA emphasized that the landlord's duty of disclosure is fundamental to the insurance contract. By not informing AIG of the change in tenant activities, the landlord breached this duty, justifying the insurer's refusal to cover the theft loss.
This case underscores the importance for property owners to promptly disclose any significant changes in tenant activities to their insurers. Such transparency ensures that the insurance coverage remains valid and that property owners are adequately protected against potential losses.
Published:Sunday, 8th Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Financial Complaints Authority (AFCA) has recently ruled against Zurich Insurance, instructing the insurer to maintain the current income protection benefits for a policyholder after an 11-year delay in proposing a reduction. This decision underscores the critical importance of timely and transparent communication between insurers and their clients. - read more
In the 2025 Life Insurance Awards presented by Money Magazine, Neos has been honored as the top provider in the Income Protection Insurance category. This accolade reflects Neos's commitment to delivering comprehensive and reliable income protection solutions to Australians. - read more
Marina operators in Northern Australia are confronting a significant crisis as insurance premiums escalate dramatically, with some experiencing increases exceeding 300% over recent years. This surge in costs is placing immense financial strain on the industry, prompting urgent calls for government intervention. - read more
As global trade dynamics undergo significant shifts, GT Insurance is reaffirming its commitment to supporting marine clients navigating these challenges. The recent imposition of US tariffs-25% on Australian steel and aluminium, and 10% on other exported goods-has introduced new uncertainties for local exporters, particularly in sectors like beef and bulk freight. These tariffs, effective from April 5, 2025, have prompted concerns about declining export volumes and reduced freight margins. - read more
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.
Web design and construction by:
Clark Family Pty Ltd
A.C.N. 010 281 008 Copyright 2004 - all
rights reserved
