Water leakage, insurance not accepting full responsibility. Brisbane loss adjuster rec

Hi team,

needing great expert advice Long one so TIA for your support.
Last month we had a burst flexi pipe which caused water escape to the ensuite, main bedroom, leaking down through main bedroom to downstairs bathroom and downstairs bedroom.

Terri Scheer have accepted responsibility for the water leakage but
1) will only do a cash settlement (they won't fix the issue)
2) will not cover vinyl floors and bathroom celing (excerpt below)

Builder's Observation

Upon inspection of the property the flexi hose to ensuite vanity has burst suddenly without warning resulting in damage.

Ensuite vanity and door has been affected from the event .

Upon attendance the vinyl flooring in bedroom and storage room has a large amount of pre exisiting defects and is in average condition.

Downstairs bathroom ceiling has pre existing defects and repairs to this area cannot be warranted. The pre-existing defects are the rust on the ceiling and the pre-existing condition of the flooring.

The PM is disputing the claim of moisture.

Stupidly in a previous property inspection the PM noted that if she were to move in she would change the vinyl floors (as well as painting, polishing floors etc- I asked her to include this for advice on what to do moving forwards). The floors were fine just needs updating for better tenants.

Questions:
1. Do I have to accept a cash payout as I would rather they complete the works and the guarentees around it
2. Can a claim be denied even though there is existing damage/ rusting as the extensive water seeping through would invariably contribute to further damage

I was wanting to know what options I have
1. Get an independent residential loss adjuster from Brisbane to conduct an independent inspection (any recommendations from Brisbane 4121 area)
2. Get quotes from builders INCLUDING the damage to the ceiling and vinyl floors
3. Escalate to AFCA
4. Internal review
5. Engage in solicitor/conveyancer (don't know if I need legal advice)
6. engage a claims managing company to look after claim.

 

You can’t go straight to AFCA, you have to go through the insurance co internal complaints process first.

options here include getting your own builder to do a report, or asking for a second opinion from another insurance panel builder which is a good option because it costs you nothing.

if the builder won’t warrant the repairs you will likely only get a payout. They will not do the repairs. However if more damage is found by your own builder you always have the option of reopening the claim and asking for additional funds.

Flexi hoses are a major cause of escape of liquid claims.

 

Was the flexi hose older than 5 years?

 

Does your policy cover new for old?

Most insurers won't pay for pre-existing damage.

If the insurer is going to give you a payout only, then get an itemised quote from two builders & negotiate the payout.