Full Breakdown
New Zealand Landlords Clash with AA Insurance Over Mouse-Damaged Oven
6/22/2026, 4:13:57 AM
The Disputed Claim: Oven Destroyed by a Rodent
On 26 April, tenants at a Kawakawa Bay rental reported smoke from a freestanding oven. An electrician later found a dead mouse that had chewed the oven’s wiring, declaring the appliance “useless and worthless.” Landlords Mark Roberts and Kathryn Ross filed a claim with AA Insurance for a replacement, but the insurer denied coverage, citing a pest-damage exclusion.
Pest-Exclusion Policies in New Zealand Home Insurance
AA Insurance’s policy lists “any loss… caused by pests, including vermin and rodents” as excluded. The company says such exclusions are standard in New Zealand homeowner policies, placing pest-related risk on the homeowner, while fire damage from a rodent-induced fault remains covered.
Parties to the Dispute
Mark Roberts and Kathryn Ross own the renovated 1960-era rental, fitted with bait stations. AA Insurance, represented by Head of Product Matthew Hickey, handled the claim. An electrician and a gasfitter inspected the oven.
Timeline of the Dispute
26 April – Smoke detected; a mouse chewed the oven wiring.
27 April – Claim filed with AA Insurance.
28 April – Owners spent NZ$3,500 on a new oven, removal and gasfitter installation.
Early May – Claim declined under the pest-exclusion.
Mid-May – Insurer offered withdrawal or a “deadlock” letter for Ombudsman review.
Late May – Roberts announced plans to go public and cancel the policy.
Official Statements & Responses
AA Insurance denied the claim, stating the damage was “caused by a rodent chewing the electrical wiring,” an excluded peril. The insurer noted fire damage from a rodent-induced fault would be covered and explained the difference between “withdrawn” and “declined” claims for the Insurance Claims Register. Matthew Hickey said the company follows the Fair Insurance Code and aims to provide clear information.
Criticism & Opposition
Roberts and Ross say they took “all the right steps” – pest control – and call the insurer’s refusal “unreasonable,” calling a declined claim “total bullying.” Ross called the incident an “unforeseen event.”
Verbatim Quotes
- “You’re better off if your house burns to the ground.” — Mark Roberts, landlord
- “I said, ‘I beg your pardon? What is insurance for? This was an unforeseen event.’” — Kathryn Ross, landlord
- “When reviewing our customer’s claim, it was evident that damage to the customer’s oven was caused by a rodent chewing the electrical wiring, and therefore, unfortunately, no cover was available.” — Matthew Hickey, AA Insurance
- “It may also affect future insurance claims – that’s total bullying,” — Mark Roberts, landlord
Conflicting Reports & Gaps
AA Insurance says fire damage from a rodent-induced fault would be covered, but the policy does not specify whether appliance damage is covered. No independent analysis is provided, leaving the exclusion’s scope unclear.
What’s Next
Roberts and Ross plan to cancel their AA Insurance policies and may seek an independent review by the Insurance and Financial Services Ombudsman. The case could influence how pest-related exclusions are disclosed to New Zealand homeowners.
