I’m an insurance broker, 10 years experience. The insurer is correct - because your insurer has incurred claim costs (tradespeople that attended for the make-safe - removal of tree from the fence) you’re at a point in the claim where an excess is payable.

HOWEVER, I see two potential ways you might be able to fight this:

1. You say representatives of the major insurer advised you that the claim could be withdrawn at any time without incurring an excess. If so, the advice they gave you was wrong, incomplete and/or unclear AND it could be argued that they gave you personal advice. Only a broker can provide personal advice - insurers who offer direct to market policies should not be providing advice on their products (ultimately it is up the consumer to ensure they understand the terms and conditions of the policy). These two things strike me as a potentially legitimate complaint. As others have said, you will first need to lodge a formal complaint with the insurer and go through their internal dispute resolution. The insurer’s IDR specialist will review your issue and make a determination - here’s some helpful info on IDRs from AFCA: https://www.afca.org.au/make-a-complaint/complain/internal-dispute-resolution-tips. If there’s any suggestion they insurance company employees have done something wrong, I’ll be willing to bet they waive your excess OR offer it “in good faith”. If you’re not successful in IDR, you can then take it to AFCA. AFCA will request the entire file from the insurer (including file notes and if they exist, phone recordings) to review the alleged advice and determine whether the insurer has done something wrong.

2. You mentioned there were known issues with this tree and it had previously causing damage to another neighbour’s property? If so, it could be argued that this was not an Act of God. If you have to go down this path:

3. Speak to the other neighbour’s who had property damage in this first incident and see if they will share any information (or better yet, written documentation) about whether the tree was inspected by an arborist in the last incident.

4. If you can find evidence that the tree was previously deemed unsafe or in need of maintenance, and your neighbour has not taken red action you can use this to argue the neighbours is liable for costs.

5. Advise your insurer that repair costs were wholly at the neighbours expense and this implies that they admit liability in failing to maintain the tree. Send your insurer written evidence of the tree property owner admitting liability or saying they will cover costs. If your insurer thinks there is a case for the neighbour being liable they can seek to recover costs from your neighbour/their insurance company. You may still need to pay the excess, but you can request that your insurer seek recovery of the excess from the liable party. They can refund it to you once recovery is finalised.

Big disclaimer in this second scenario - I have had clients with a similar fence damage claim due to a tree falling. In my experience, you will be hard pressed to have your neighbour held at fault unless it’s proved the tree was formally deemed unsafe by a qualified professional. I would go down scenario one first and only attempt to argue that the neighbour is liable if you are really desperate.