Insurance Council of Australia

Disaster & catastrophes

Disaster chasers prey on flood and storm affected homeowners

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Disaster chasers prey on flood and storm affected homeowners

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News release

Friday, 18 June 2021

Insurers are urging householders in flood and storm ravaged areas of regional Victoria to identify and report disaster chasers to government authorities or police. 

Media reports today state that following last week’s destructive winds, rain and floods, disaster chasers have started door-knocking damaged homes, seeking to exploit vulnerable householders. 

Reports state that disaster chasers are offering tree and debris removal for which want to be paid upfront in cash but leave without doing the work or the work is poorly done or not completed. Disaster chasers can also offer to undertake home inspections or repairs for cash payment.  

These operators may not have a building licence, trade qualifications, professional indemnity insurance or an ABN. In the past some have been known to use standover tactics to demand money and they may falsely claim they have been sent by an insurer. 

Some disaster chasers pressure the householder to sign a contract for repair work on the spot and may promise that the insurer will pay for all work. This can leave the customer with an inflated bill or commission to pay, because insurers will only pay for approved work that is covered by a policy.   

Identifying disaster chasers and reporting them to the Australian Competition and Consumer Commission (ACCC) will help bring them to account. And if they threaten, harass or intimidate anyone, police should be notified immediately. 

Tips for identifying and dealing with a disaster chaser: 

  • An insurer will not send a tradesperson or builder to your home without notifying you and providing you with details  
  • Speak to your insurer before agreeing to any repairs or rebuilding work to make sure your insurer will cover the work 
  • A tradesperson or builder who is working for your insurer will not ask you for payment 
  • If in doubt, ask for identification such as a builder’s licence or driver’s licence, and ring your insurer to check 
  • If you sign a contract with a disaster chaser, you have a statutory 10-day cooling-off period. Your insurer can help you end the relationship with the disaster chaser 

Insurers have received more than 15,700 claims from this event, with an estimated cost of $144 million. With several areas not yet accessible to assessors, insurers expect claims to rise in coming days.  

Quote attributable to Andrew Hall, CEO: 

Unfortunately, disaster chasers can emerge soon after a natural disaster and target householders who have been affected.  

They can leave families, the elderly and vulnerable Australians much worse off, with large bills and homes that remain badly damaged.  

The ICA urges anyone who is approached by a disaster chaser to call the relevant authorities.  

Useful links

Help in Disasters
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Insurers here to assist hailstorm affected customers with claims

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Insurers here to assist hailstorm affected customers with claims

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News release

Thursday, 20 May 2021

The Insurance Council of Australia (ICA) and insurers will host one-on-one consultations in Springfield Lakes for local customers affected by last year’s Halloween Hailstorm.

The consultation is an opportunity for customers to speak directly with members of their insurer’s claims team about their individual scope of works and repair process specific to their property. The consultation is also an opportunity to understand the insurance recovery process.

What: Customer consultations with insurers or the ICA recovery team.

When: Thursday 17 June from 10am to 7pm

Address: Springlake Hotel, 1 Springfield Lakes Blvd, Springfield Lakes

How to book: Book online at Catastrophe 204: Halloween Hailstorm - Insurance Council of Australia or call 1800 734 621.

This is a COVID-safe event, registration is essential for customer consultations with insurers.

Quote attributable to Andrew Hall, CEO, Insurance Council of Australia:

The consultations are an opportunity for insurers and the ICA to speak directly to customers about their personal circumstances and claim progress.

Insurers can assist homeowners impacted by the Halloween Hailstorm who would like a better understanding of rebuilding timeframes and agreement of scopes of work.

The insurance industry knows the ongoing impact the Halloween Hailstorms have had on the Ipswich region. These consultations will help insurers and customers understand what’s needed to complete repairs and finalise claims.

Insurers have received more than 42,000 claims to date, with more than 2,000 claims lodged in the past eight weeks. The current estimated loss is at $980 million.

Useful links

Catastrophe 204: Halloween Hailstorm
icon Insurers here to assist hailstorm affected customers with claims
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Insurance catastrophe declared for Victorian floods

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Insurance catastrophe declared for Victorian floods

News release

Sunday, 13 June 2021

The Insurance Council of Australia (ICA) has declared a Catastrophe for regions of Victoria impacted by the significant storms and flooding of the last few days.

The ICA’s Catastrophe Declaration serves to escalate and prioritise the insurance industry’s response for affected policyholders.

Under the Catastrophe declaration:
• Claims from affected policyholders will be given priority by insurers
• Claims will be triaged to direct urgent assistance to the worst-affected property owners
• The ICA’s disaster hotline has been activated – 1800 734 621 – to assist policyholders if they are uncertain of their insurance details or have general inquiries about the claims process. (Please note: this is not a claims lodgement service.)
• ICA representatives will be mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so
• Insurers will mobilise disaster response specialists to assist affected customers with claims and assessments as soon as emergency services say it is safe to do so
• An industry taskforce has been established to identify and address issues arising from this catastrophe.

The impact of the flooding has been felt most significantly in Gippsland around Traralgon and in the Yarra Ranges, however the declaration covers all claims related to the event last week.

Quote attributable to Andrew Hall, CEO, Insurance Council of Australia:

It’s too early to understand the extent of the damage to property in affected areas and to estimate the insurance damage bill, however insurers have received more than 6,500 claims in the past few days.

The insurance industry has made this Catastrophe Declaration to activate services and support for affected homeowners and businesses and reassure them that their insurer is there to help.

As many areas are currently inaccessible due to floodwater, insurers are expecting further claims in coming days as emergency services allow residents to return to their properties to examine the extent of their damage and losses.'

Insurance and flood damage – what to do when you return to your property:

• Safety is the priority - don’t do anything that puts anyone at risk
• Only return to your property when emergency services give the go ahead
• If water has entered the property, don't turn on your electricity until it has been inspected by an electrician
• Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process
• You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim
• Keep samples of materials and fabrics to show your insurance assessor
• Remove water or mud-damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
• Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible
• Store damaged or destroyed items somewhere safe
• Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
• Do not throw away goods that could be salvaged or repaired

Useful links

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How are claims for damaged fences handled?

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How are claims for damaged fences handled?

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  • The ownership of boundary fences is shared between the adjoining property owners. Where the adjoining property is used for public purposes the resident property owner is deemed to be the owner of the whole fence.
  • Insurance policies reflect shared ownership and cover up to an amount equal to the proportion of ownership e.g. 50%
  • The benefit is usually settled as a cash payment, and is based on the full cost to repair or replace the boundary fence with the proportion of ownership applied.
  • The shared ownership of boundary fences is the reason why insurers generally offer cash settlements as there is usually more than one party responsible for the repair.

What if the fence is constructed with asbestos?

Where a damaged boundary fence is constructed with asbestos materials all necessary precautions will be taken to remove debris safely, and repair or replacement costs will allow for the use of modern materials.

Who's responsibility is it negotiate and manage the replacement of the boundary fence the neighbours?

Once a boundary fence claim is settled, it is the responsibility of the property owner to negotiate and manage the replacement of the boundary fence with their neighbour/s.

How can my local council help me?

Your local council may provide you with fencing codes and guidelines, and assist with meditating boundary fencing disputes.

Looking to source local trades for your fence repair or replacement? 

Your local Master Builders Association can assist you with sourcing local trades to quote on your fence repair or replacement.

Useful links

Code of Practice
Cyclones
Current catastrophes
icon Fact Sheet: Claims for damaged fences
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ICA welcomes Victorian bushfire funding but warns insurance taxes ‘unsustainable’

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ICA welcomes Victorian bushfire funding but warns insurance taxes ‘unsustainable’

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News release

Friday, 21 May 2021

The Insurance Council of Australia (ICA) today welcomed the Victorian Government’s Budget announcement of $517 million to be allocated across several bushfire risk reduction projects, but said the projected growth in taxes on insurance were unsustainable and meant Victorians would continue to be underinsured or not insured at all.

The projects announced as part of the Budget to improve communication, land management, infrastructure and bushfire emergency response are positive investments to reduce the future impact of bushfires on communities and property owners.

The ICA and insurers have been calling for increased investment in resilience and mitigation measures for more than a decade, and both the Morrison and Andrews Governments have responded positively with significant funding as part of the 2021-22 Commonwealth and Victorian Budgets. The Federal Government’s allocation of $1.2 billion over five years to improve Australia’s capability to prepare for, respond to, and recover from natural disasters and now the Victorian Government’s $517 million investment in bushfire specific resilience initiatives will protect communities vulnerable to the impact of extreme weather and natural disasters.

This welcome news is tempered, however, by the Victorian Budget’s projections that revenue from insurance stamp duty will increase by almost one third over the budget estimates, rising 29 per cent from $1.517 billion in 2020-21 to $1.959 billion in 2024-25.

Quote attributable to ICA CEO Andrew Hall:

Insurers have been calling for some time for this scale of investment in resilience and mitigation measures, and it’s pleasing to see the Victorian Government has heard those calls.

More resilient communities, businesses, and households mean less disruption to life and faster recovery after a major natural disaster. However, the effectiveness of this welcome budget measure is tempered by the Treasurer’s own projections that stamp duty on insurance will rise by 29 per cent over the forward estimates to almost $2 billion.

Stamp duty on insurance is a retrograde revenue measure that numerous inquiries and reviews have found leads to household underinsurance or non-insurance. It’s disappointing that not only does this Budget fail to reform this problem, in fact the budget papers show an increasing reliance on insurance stamp duty.

The ICA urges all state and territory governments to advance tax reform and remove stamp duty on insurance products to increase insurance affordability for all Australians

PDF - ICA welcomes VIC Bushfire funding 

 

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ICA Welcomes Federal Budget’s Disaster Mitigation Funding

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ICA Welcomes Federal Budget's Disaster Mitigation Funding

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News release

Tuesday, 11 May 2021

The Insurance Council of Australia (ICA) tonight welcomed the 2021-22 Federal Budget as an historic Commonwealth commitment to funding resilience and mitigation measures to better protect vulnerable Australian communities against natural disasters.

The ICA and insurers have been calling for increased investment in resilience and mitigation measures for more than a decade, and the Morrison Government has tonight provided an allocation of $1.2 billion over five years to improve Australia’s capability to prepare for, respond to, and recover from natural disasters.

Insurers welcome investments in the future success of vulnerable communities, including $600 million for new disaster preparation and mitigation programs as part of the establishment of the new National Recovery and Resilience Agency (NRRA) and $40 million to make strata buildings in northern Australia more resilient to extreme weather events. To get maximum return from this investment the ICA calls on state and territory governments to match the Federal Government’s funding in their own jurisdictions.

The natural disaster response package also includes $280 million over three years for projects in bushfire affected areas as part of the National Bushfire Recovery Fund, $210 million to establish the Australian Climate Service to help inform risk reduction and resilience investments, and $90 million for national disaster management funding.

Along with the new NRRA funding, the Budget commitment to underwrite a $10 billion reinsurance scheme for cyclone and related flood for privately-owned homes, strata corporations and small businesses has been welcomed by insurers, who are committed to working with the Government on the design and implementation of the scheme.  

Comment attributable to Andrew Hall, CEO Insurance Council of Australia:

Treasurer Josh Frydenberg’s third budget is good news for delivering a community more resilient to the risks of natural disasters.

The Productivity Commission’s estimate that 97 per cent of all disaster funding in Australia is spent after an event, with just three per cent spent on mitigation measures ahead of a disaster, shows that the Federal Government’s commitments are an historic first step towards redressing that imbalance.

The ICA in particular thanks Assistant Treasurer Michael Sukkar for the constructive way he has worked with insurers, particularly on short, medium and long term measures to improve affordability and availability of insurance.

Insurers look forward to working with the Government and other stakeholders on the design and implementation of the cyclone reinsurance pool ahead of its implementation mid-2022.

PDF ICA welcomes Federal Budget

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We acknowledge the Traditional Owners on the many lands the people of the ICA reside and work. We respect and honour Aboriginal and Torres Strait Islanders Elders past, present, and emerging.
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