As ex-Cyclone Alfred makes its way inland, leaving behind a deluge of damage and flooding in southeast Queensland and northern NSW regions, many residents are likely to be turning their minds to the aftermath and the next steps of dealing with insurance.
An ‘insurance catastrophe’ has already been called by the Insurance Council of Australia (ICA) and over 9,200 claims — the majority coming from Queensland — have been lodged so far, with thousands more expected in the coming days and weeks.
It’s still too early to predict what the total damage bill will be here, but back in 2023, Tropical Cyclone Jasper cost over $400 million from around 10,500 claims. Meanwhile, the 2022 floods remain the costliest insured event in Australia’s history, with $6.4 billion in insured losses across more than 245,000 claims, per the ICA.
If you’re in a cyclone-affected area and trying to figure out what you need to do next with your claim, we’ve got you sorted.
Safety first
While it can be tempting to just get on with the paperwork, your safety is the top priority here, and it’s really important to follow the advice of authorities.
In some cases, they might advise you to avoid entering flooded or some structurally unsafe areas. Also, be mindful of electrical hazards and fallen powerlines.
If water has entered the property, it’s a good idea to avoid turning on the electricity until it has been inspected by an electrician. The same typically goes for your car if it sees any water damage, which can be towed to an assessment location if needed.
Don’t forget, a large number of storm-related injuries can actually occur after the storm has passed — stay cautious!
Learn how you’re covered by your insurance policy
Once you’ve gotten the green light to check out your home and surroundings, take a sec to do a proper review of your insurance policy. Is property and flood damage covered? What isn’t covered? (Sometimes policies can differ in their coverage of damage incurred by rainwater or flooding) Does your insurer accept claims over the phone, online, or both?
It’s also worth getting in touch with them as soon as you practically can, even if you’re not entirely sure about the scope of damage. In many cases, help could be on the way with emergency property safety checks to prevent injury and reduce the risk of further damage, such as removing loose debris, isolating damaged solar panels or electrical circuits and installing a roof tarp, per the ICA.
Insurers may offer temporary accommodation or financial support for customers who aren’t able to stay in their own homes, and many also arrange food spoilage payments under your contents insurance.
Don’t forget that the government has also announced crucial disaster relief measures for those affected.
Document everything in your home
On to the more tedious parts of the process, don’t forget to take detailed photos and videos of the damage to your property, both inside and outside. Everything counts here, even if the damage seems minor.
It’ll help to make an inventory of any items that have been damaged or lost and if you’re able to get these details, try to include the value, age, and any receipts or proof of purchase. In terms of larger items (like, say, your fridge), it would be useful to record the model number or serial number for your claim.
And in case you weren’t able to take any pictures before the damage, don’t fret! Try to find any other documents that may be helpful to back your claim, think bank statements or receipts.
It might help to also compile any proof of prior maintenance like gutter repairs or electrical work.
You’ll typically find the amount of evidence required by your insurer will likely depend on the nature and value of your claim, according to Legal Aid Queensland’s handy guide.
“For building claims, expert reports might be needed about the cause of the damage, the extent of the damage and/or the appropriate way of putting things right. This will usually only become relevant if there is a dispute over your claim,” it explained.
And, Legal Aid Queensland explains, you don’t necessarily need to wait for an assessor to visit your property before you start to clean up.
“Take photos and video as you are cleaning up the damage so you can give these to the assessor,” it stated.
But you might want to hold off on any larger, non-critical building works in case unauthorised work isn’t covered by your policy.
Making the claim
A word of wisdom as you get ready to lodge your claim — you might need to be patient here because there’s a good chance insurers will be experiencing high call and email volumes, even if they are doubling up staff numbers to deal with the demand.
They may also take some time to send a claims assessor, with the hardest hit properties getting priority here, but according to the Australian Securities and Investments Commission (ASIC), you should keep communicating with your insurer throughout the claims process and ask questions if you don’t understand something.
A handy tip is to keep records of all communications with your insurer, like names, dates, and what was discussed. And if an adjuster visits, you might benefit from noting what they say and what areas they inspect.
During this time, you’ll usually get a handy time frame with regards to your claim, either on the insurers’ website or in their communications with you. If you don’t hear back after this time period has elapsed, it’s okay to follow up!
What happens next with your insurance claim?
According to the ICA, after your insurer has completed the necessary inspections, you will be provided with a claim decision in terms of what and how you’re covered. There will also be a written report that outlines the repair or rebuild work to be performed — and if it helps, revision of this report is pretty normal once repairs have started or further damage has been found.
With this step, your insurer will usually appoint a builder, arrange the contracts, manage local council approvals, and notify you of the schedule. Or, if you prefer, you may instead get a cash settlement to manage the repair or rebuild yourself.
“It’s important that you comply with council regulations and buildings codes, as well as using a licensed builder. If you fail to do this, your home may not be insurable in the future,” the ICA cautioned.
What if you’re renting?
If you’re a renter, it’s important to know the owner or property manage is responsible for any maintenance or repairs of the property due to damage. However, they’re not responsible for replacing your belongings — in this scenario, you might need to lodge a contents insurance claim, per ABC News.
Often, this will cover items like your furniture, electrical appliances, clothes, and kitchen items, but it’s worth looking into exactly what your policy entails.
Beware the scams
Unfortunately, natural disasters like ex-Cyclone Alfred are often ripe with scammers claiming to help you.
“Be wary of anyone who asks for payment up-front or who asks you to sign a contract immediately,” said ASIC commissioner Alan Kirkland.
“Do not agree to sign anything that prevents you from dealing directly with your insurer or broker. If in doubt, contact your insurer directly using the phone number on your policy documents or on their main website.”
You should also make sure any tradesperson you are dealing with is properly licensed. For Queensland, this can be done through the Queensland Building and Construction Commission’s online portal. In New South Wales you can check they are licensed through Verify NSW.
And if you need any help regarding your insurer or need some financial counselling support, you can call the National Debt Helpline on 1800 007 007 for advice and referral to the right service.
Lead image: Chris Hyde/Getty Images
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