Recent research has revealed that a significant portion of Australians are uncertain about the extent of their home and contents insurance coverage, particularly in relation to mould.
With meteorological forecasts indicating an upcoming period of increased rainfall and humidity, industry observers are drawing attention to the potential for widespread mould growth and the associated insurance implications.
A survey conducted by iSelect, an insurance comparison provider, found that only 37% of Australian respondents were confident in their understanding of their insurance policy’s coverage.
This figure is lower than those reported in Canada and the US, where 43.3% and 44.7% of respondents, respectively, expressed confidence in their policy knowledge.
The survey, which included over 3,000 participants from the three countries, also indicated that 46.1% of Australians had only a general idea of their coverage, and 5.1% were unsure of what their policy entailed.
Notably, 11.8% of Australian respondents stated they did not have any home or contents insurance, a higher percentage than in the other countries surveyed.
The survey results highlight that confusion about mould coverage is widespread across all Australian states and territories.
For example, 73% of New South Wales residents, 72% in Queensland, and 88% in the Northern Territory reported not knowing whether their insurance covered mould-related damage.
This lack of awareness comes as recent data from Airtasker points to a 12% rise in requests for mould removal services, with Sydney’s eastern suburbs, North Sydney, and several other districts experiencing the highest demand.
Queensland’s coastal regions and northern New South Wales have also been identified as areas with elevated mould activity.
The health impacts of mould have been brought to public attention through the experience of Rachael Finch, a public figure who described her family’s encounter with mould-related illness after moving into a property in Coogee, New South Wales.
Finch recounted that her daughter developed a persistent cough, which was ultimately linked to mould exposure in their home.
“One of the main reasons why we moved out of Coogee was because of mould,” she told News.com.au, explaining that the issue was only discovered after consulting a specialist and conducting further tests.
Sophie Ryan, spokesperson for iSelect, noted that the coming months could see increased mould issues due to expected weather patterns. She stressed the importance of understanding insurance policy details.
“Home insurance and contents insurance, it’s one that you really do need to read that fine print... because otherwise, you’re exposing yourself to potential financial pain, not knowing these things and you don’t want to be left underinsured, or not insured altogether if you do need to make a claim,” she said, as reported by News.com.au.
Ryan also pointed out that many policies exclude coverage for mould that develops due to preventable causes, such as inadequate ventilation or lack of cleaning. In such cases, policyholders may be responsible for remediation costs.
For renters, the division of responsibility between tenant and landlord depends on the source of the mould. Structural issues, such as leaks, are typically the landlord’s responsibility, while mould resulting from tenant behaviour may not be covered by the landlord’s insurance.
Ryan advised renters to clarify their obligations and review the landlord’s insurance coverage regarding mould.
Industry professionals recommend that property owners and tenants take proactive steps to reduce mould risk, such as ensuring proper ventilation, using exhaust fans, drying clothes outside, and promptly addressing any signs of moisture. In humid environments, the use of dehumidifiers may also be beneficial.
The iSelect survey further revealed that while 60% of Australians had reviewed or updated their insurance policy in the past year, 9.3% had never revisited their policy since its inception.
Only 26.4% updated their contents valuation after significant purchases, with the majority making changes only at renewal or not at all.
Adrian Bennett, general manager of general insurance at iSelect, commented: “It’s important to ensure that your contents valuation is up to date so that, should something unexpected happen, you’re properly covered.”
