GUASTALEGNAME V AUSTRALIAN ASSOCIATED MOTOR INSURERS LTD

[2017] VSC 420, Supreme Court of Victoria, Justice Hargrave, 2 August 2017

Insurance (property) - Heave - Whether "soil movement" included heave

G took out a home building insurance policy on her home. The policy excluded, amongst other things, "soil movement or settlement, subsidence or landslide". On 25 December 2011 a hail and rainstorm led to water coursing around the building and pooling under and about the concrete slab of the building. The clay soil under the slab heaved, causing the soil to expand and the slab to rise. The raised slab lifted the walls and roof frames, causing cracking and other consequential damage to the building. The insurers relied upon the "soil movement" exclusion.