I have personally experienced the negative impacts of the Australian Financial Complaints Authority's (AFCA) capped compensation limitations for home building insurance claim. When AFCA sets these compensation limits, the concerns and welfare of Australians like myself need to be kept in mind. 

The current caps set by AFCA limit the compensation a party can receive to just $631,500 per claim with the amount claimed by a complainant that must not exceed $1,263,000 for all claims.(https://www.afca.org.au/members/news/incoming-adjustments-to-afcas-monetary-limits-and-compensation-caps-1-january-2024 

(By way of example: If your home building is insured for rebuild at $1,000,000 and it burns down, for one claim the compensation limit at AFCA is only $631,500). This figure is out of touch with the reality of financial losses some people face when their homes are damaged by an insurable event (eg: storm, fire or flood).

A claim for indirect financial loss is only $6,300 and non-financial loss is only $6,300. These figures again are out of touch with the reality of financial losses some people face when their homes are damaged by an insurable event.

AFCA reports that it handled 29,335 General insurance complaints between 1 July 2023 and 30 June 2024 (https://www.afca.org.au/annual-review-general-insurance-complaints ) The monetary losses consequent of financial disputes often far exceed the currently capped amounts, leaving home owners unable to fully recover.

Increasing AFCA’s compensation caps and monetary limits is a step toward more adequate justice, providing aggrieved parties a right to an independent decisions from an insurer when a dispute arises with fair and equitable compensation reflective of the losses incurred. Compensation limits should be aligned with the insured home building policy entitlements for all Australian home owners.

Please sign this petition to advocate for reform to AFCA's compensation caps and monetary limits, for a fairer, more compassionate financial complaint resolution system.