My insurance covers accidental damage but every time I have tried to claim they say that dings and scrapes on the internal walls, stains in the carpets, gouges in the flooring and benchtops is all wear and tear* so not covered.
Even though the property is only a few years old and in good condition when tenants moved in.
Its a scam.
* One of the insured events they wont cover .
It's not an "insured event" they won't cover (whoever "they" are) as "wear and tear" is not an insured event. If wear and tear was an insured event the premium would be so ridiculously high that no-one would ever take out insurance. I as many people own my own home and accept that 3 years on it is not still going to look the same, there will be scratches and marks and maybe some stains on the on the carpet. These people are living in the property the same as an owner-occupier lives in their property, and owner-occupiers accept these things as wear and tear, and most people would never consider expecting an insurance company to pay to repair them, or to essentially renovate their home.
Liken it to car insurance, if you spill a drink on the carpet in your car do you automatically claim it on your insurance?
That said, there are an imeasurable number of circumstances that can fall under accidental damage (although I can't speak in regard to the specific policy you have, only of ours).
Genuine accidental damage claims can certainly include carpet stains, we pay plenty of them, an example may be after a party that may have ruined the carpet, but also where we have had people bring motor bikes inside and dripped oil all over the carpet. But an individual stain (although may technically be claimable) is likely not to be worth more than the excess on the policy.
Most accidental damage sections will require an "event" to occur, not just a build up of a range of minor issues that have occured over time. It's not a "scam", it's a case of understanding the policy and not having unrealistic expectations.
Landlords (of which I am one as well) can't expect to get a property back in the exact same condition years down the track, wear and tear will occur no matter who lives in it.
If you believe you are being hard done by, go via the companies complaints process, which can end up with the insurance ombudsman. If you have a legitimate claim it should be paid, there is no question about that.