Homeowner wins storm damage insurance battle, but still no payout after tribunal ruling

The nitty gritty of home insurance can leave homeowners facing all sorts of technical loopholes and attempts by an insurer to deny claims.

This week on The Money Show, Wendy Knowler reports on a victory for a Capetonian whose Woodstock heritage home suffered storm damage back in 2023.

This sparked a two‑and‑a‑half‑year battle with the insurer, a long fight through the National Financial Ombud (NFO) and the ongoing frustration of still not being paid despite finally winning her case on appeal.

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Knowler sketches the severity of that 2023 Cape storm:

"The storm raged for two days, brought record-breaking rainfall and destructive winds of up to 142 km/h. Part of the roof of this Victorian home blew off, the bedroom ceiling collapsed under the weight of the water and the timber floors were flooded."

The total damage suffered by the homeowner was R363 000 and Standard Insurance did pay out, but not in full.

The insurer paid their client R228 000 for replacement of the roof and another R23 000 for emergency repairs and storage costs, which left an unpaid balance of around R111 000.

"They didn't pay that on the grounds that the damage had occurred - as THEY claimed - gradually from wear and tear over the130 years that the house had stood, coupled with non-treatment of borers, termites and dry rot and general lack of maintenance, which is this very standard reason for repudiating these claims across all insurers."

Initially, the NFO decided with the insurer in the claim, and that's why it went all the way to the Appeals Tribunal, Knowler explains.

Last month, on 13 February, the Tribunal ruled in favour of the homeowner and Standard Insurance were given until 27 February to pay the outstanding R111 000.

Knowler is following up with Standard to hear why they have not coughed up the money.

This kind of pushback by insurers is very common says Knowler, which is why she repeatedly warns homeowners to make sure they do invest in doing those routine, and possibly costly tasks like having their roofs looked at and checking for borer.

"DO all these boring things you'd rather not spend money on, because if you don't, they will find out if you submit a claim like for something like a roof being blown off and then you'll have this kind of fight on your hands."

Scroll up to the audio player to hear more detail from consumer ninja Wendy Knowler