Insurance Council of Australia

Flood

Federal decision on Queensland resilience funding disappointing

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Federal decision on Queensland resilience funding disappointing

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News release

Wednesday, 6 April 2022

The Insurance Council of Australia (ICA) today expressed its disappointment in the Federal Government’s decision to not contribute to the Queensland Government’s extreme weather resilience package.

Last Month the ICA welcomed the Queensland Government’s announcement of a $741 million Resilient Residential Recovery package to better protect Queenslanders from the impacts of extreme weather events, such as flood and cyclone.

The Queensland Government had requested that the Federal Government fund 50 per cent of the package, which was designed to assist Queenslanders pay for resilience measures such as retrofitting and raising homes in flood impacted areas.

The ICA has long been calling for the Queensland Government to lift its investment in this area, and late in February released its Building a More Resilient Australia report which called for $726 million to be invested jointly by the Queensland and Federal Governments over the next five years.

Building a More Resilient Australia calls for Federal Government investment in measures to better protect homes and communities from the impacts of extreme weather to be doubled nationally to $200 million a year over five years, and for this to be matched by the states and territories.

Last week, the ICA welcomed the Federal Government’s 2022-23 Budget announcement of $268 million in related measures to better protect Australians from the impacts of extreme weather.

While the two-year commitment to resilience funding was welcome, sustained and greater funding in this area is required if the risk profile of communities exposed to extreme weather is to change.

A poll undertaken last month for the ICA found that 68 per cent of people living in Greater Brisbane say that not enough is being invested by governments at all levels to protect homes and communities from extreme weather events, with 62 per cent calling for funding to at least double.

Fifty-two percent of those surveyed in the Queensland capital believe funding of this important protection is the responsibility of the State and Federal governments equally.

As of Friday 1 April, more than 92,700 claims had been lodged in Queensland in relation to the March floods, with an estimated claims cost of $1.3 billion.

Quote attributable to ICA CEO Andrew Hall:

As severe rain and flooding continues to impact the east coast the failure of the Federal Government to match Queensland’s investment in measures to improve household and community protections against extreme weather is disappointing and short-sighted.

If Australia is to get serious about improving our resilience to flood, bushfire and cyclone, all levels of government must contribute.

Australians – particularly those still impacted by the ongoing rain and flooding – want governments to come together to provide better protections against worsening extreme weather, not wash their hands of responsibility.

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Insurance Council monitoring severe weather warnings

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Insurance Council monitoring severe weather warnings

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News release

Tuesday, 29 March 2022

The Insurance Council of Australia (ICA) is closely monitoring the severe weather and flood warnings currently in place across south-east Queensland and New South Wales.

The ICA understands at least 14 recovery centres, including Lismore and Mullumbimby, have closed in the past 24-hours to ensure the safety of staff and community members.

Insurance assessors who have been on the ground for the past month are following direction from emergency services and will be standing by to move back into flood-impacted communities once it is safe to do so. 

If your property has been impacted, please contact your insurer as soon as possible to commence the claims process.

The ICA would like to assure the community that the industry will continue to work with governments to understand impacts on the community and ensure affected residents receive assistance.

As of Friday (March 25) insurers have received in excess of 165,000 claims related to flood in south-east Queensland and New South Wales since February 21, 2022.

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

This is the last thing communities in south-east Queensland and NSW need, and we understand the stress for homeowners and businesses from yet another flood event.

Insurers’ first priority is community safety, and we strongly encourage all those impacted to put their safety first.

We have been on the ground over the past month and will continue to be available under the direction of emergency services.

 

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Insurance Council welcomes Queensland funding boost

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Insurance Council welcomes Queensland funding boost

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News release

Saturday, 19 March 2022

The Insurance Council of Australia (ICA) today welcomed the Queensland Government’s announcement of a $741 million Resilient Residential Recovery package to better protect Queenslanders from the impacts of extreme weather events such as flood and cyclone.

The ICA has long been calling for the Queensland Government to lift its investment in this area, and just last month released its Building a More Resilient Australia report which called for $726 million to invested jointly by the Queensland and Federal Governments over the next five years.

The ICA supports the call by the Queensland Government for the Resilient Residential Recovery Package to be jointly funded by the Federal Government.

Building a More Resilient Australia calls for Federal Government investment in measures to better protect homes and communities from the impacts of extreme weather to be doubled nationally to $200 million a year, and for this to be matched by the states and territories.

The report outlines a five-year, $2 billion funding program which includes:

  • $522 million for local projects such as flood levees to defend regional towns, including Mackay, Innisfail, Dalby and Rockhampton
  • $413 million to better protect homes against flood, Australia’s most expensive natural peril, by
  • raising utilities and services above the expected floodline
  • $221 million to cyclone-proof more than 44,000 homes in Northern Australia
  • $37 million for an improved national flood early warning system, estimated to increase the lead time for flood warnings from 3-5 to 10-15 days

As at midday Friday 18 March more than 85,000 claims had been lodged in Queensland in relation to this month’s flooding with an estimated claims cost of $1.285 billion.

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

This announcement highlights that governments are shifting in their thinking, to learn from the lessons of the current disaster and invest in mitigation ahead of the inevitable next event.

Three weeks ago the ICA released actuarial modelling that called for these kinds of funding commitments to be made and we are pleased governments are heeding this important call.

We look forward to further announcements by the Federal Government, not just for Queensland and New South Wales, but across the country where communities remain vulnerable to extreme weather.

Insurers hold significant data and research that can assist in resilience and mitigation efforts and we stand ready to assist the Queensland Government following its announcement.

We note that the funding will be across a range of mitigation measures, including, at the extreme, the buyback of properties that are highly vulnerable and whose owners struggle to find insurance cover.

 

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Frequently asked questions after a disaster

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Frequently asked questions after a disaster

The Insurance Council of Australia is the representative body for General Insurers in Australia. While we’re unable to provide consumers with personal advice on products or insurers, we are on the ground following disasters to coordinate insurer response and respond to general enquiries related to the claims, clean-up and recovery process.

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.

Contact your insurer immediately. If you have home or building insurance, your policy may provide emergency temporary accommodation.

Contact your insurer as soon as possible to lodge a claim and seek guidance on the claims process. Don’t worry if you can’t find your insurance papers, insurers have electronic records and need only your name and address.

If water has entered your property, don’t turn on your electricity until it has been inspected by an electrician. If you are without power, gas or NBN, check with your utilities supplier or networks on when you will be reconnected. You do not need to wait for your insurance assessor to visit your property before your utilities are reconnected.

You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim. If you have security footage of the event, make this available.

  • Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible.
  • Take photos before removing any water damaged or soaked items that may pose a health risk. 
  • Store damaged or destroyed items somewhere safe where they don’t pose a health risk.
  • Do not throw away goods that could be salvaged or repaired.
  • Speak to your insurer before authorising any building work, including emergency repairs.

An insurance assessor will inspect your property as quickly as possible once you’ve lodged a claim. That said, following large disasters, access to your property may be limited for days or even weeks. Your insurer will tell you when to expect your assessor.

Unfortunately, disasters can attract fraudsters looking to profit from others misfortune. If a builder or assessor unexpectedly arrives at your door offering services, you may ask to see some identification for your peace of mind. You may also contact your insurer to confirm the builder or assessor has been appointed to assist with your claim.

An excess is the amount you have agreed to pay towards each incident. The specific amount will be set out in your Certificate of Insurance. You may be required to pay more than one excess depending on the circumstances. If you are unsure, ask your insurer. A Disaster Declaration does not remove your obligation to pay your excess.

Speak to your insurer or broker if you’re not sure. Flood has a standard definition and for domestic products is offered in four ways:

  • Standard inclusion
  • Standard inclusion, opt out at customer request
  • Not standard inclusion, opt in at customer request
  • Not standard inclusion

Most domestic products are purchased direct from insurers. Customers should review their policy documentation or contact their insurer to confirm the cover they have in place.

For commercial products, flood cover is not standard and has to be opted into. Most commercial products are purchased via intermediaries i.e. brokers. Customers should review their policy documentation or contact their Broker to confirm the cover they have in place.

The covering of normally dry land by water that has escaped or been released from the normal confines of:

  • any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
  • any reservoir, canal, or dam.

If you opted out of flood cover, did not opt in to flood cover, or your policy excludes flood, your insurer may still assess any claim you make to determine how your home was inundated. This may be required to establish whether other inclusions in your policy (cover for storm water run-off for example) can cover all or part of your claim.

Check your policy wording and talk to your insurer if you do not understand what you are covered for.

Hydrology is the field of study and expertise that can determine how a home or property was inundated. Insurers will arrange a hydrology report in cases where they need to determine the primary cause of water inundation to make a claim decision.

A ‘Make Safe’ is immediate rectification works to prevent further damage to your property or make the site safe to visit. This may include fitting tarpaulins to your roof or treating debris with an adhesive to prevent the spread of contaminants.

A ‘Make Safe’ may initially be conducted by emergency services, government agency or a contractor appointed by your insurer.

A scope of works is a document that sets out what damage to your property is covered by your insurance policy. The scope of works is a list of home building repair works for your insurance claim. It can help identify and outline what repair or rebuilding work is needed to fix things. It may be used to obtain repair quotes.

Your scope of works is usually prepared by your insurer’s loss adjuster and/or builder or engineer. The scope of works may be developed by visiting or virtually assessing your property to inspect the damage and asking you for information.

If a house hasn’t been well maintained, it is at a much higher risk of being damaged by extreme weather. For this reason, when you apply for insurance, insurers require you to confirm your home is well maintained. If an insurer assesses your home and finds evidence it hasn’t been well maintained and that has contributed to the damage, they may reduce the amount they will pay you or require you to fix the maintenance issue before they repair your home. In some cases, the insurer may deny the claim.

The extent of damage, complexity of your claim and access to labour and supplies will impact how long a repair or rebuild will take. Once your Scope of Work is complete, ask your insurer for a timeline.

A cash settlement is an amount of money your insurer may offer to settle your claim. Insurers can settle some or all of your insurance claim using a cash settlement.

Insurers will explain the basis for the dollar amount of the cash settlement they offer you and provide you with a Cash Settlement Fact Sheet. You are free to get your own quotes to estimate how much it would cost to repair or rebuild your property and provide them to your insurer as part of the cash settlement process.

Common reasons for cash settlements include:

  • it is unsafe to repair or rebuild your home.
  • the local authority will not allow you to repair or rebuild.
  • your insurer can only partially accept your claim. This may be because there is damage to your property that is not covered by your insurance, which first needs to be fixed by you.
  • your insurance does not cover the amount of money it will take to repair or rebuild your home to today’s building standards and it is not possible for your insurer to repair or rebuild your home, having explored available options with you for you to pay the difference.

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What to do when you return to your property after flood

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What to do when you return to your property after flood

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Immediate aftermath

  • Safety is the priority - don’t do anything that puts anyone at risk.
  • Only return to a property or vehicle when emergency services give the go ahead.
  • Do not drive your vehicle if it has suffered water damage.
  • If water has entered the property, don't turn on the 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.
  • Let your insurer know if you've sustained roof damage.
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing, as unauthorised work may not be covered by your policy.

Cleaning up after flood

  • Before you start your clean-up take photos or video of damage to your property and contents / possessions to support your claim. 
  • Remove any water damaged items from the property that may pose a health risk such as soft furnishings and carpet. Take photos or keep small samples of water damaged items to support your insurance claim.
  • Don’t throw away items that could be repaired, unless they pose a health risk.
  • Make a list of each damaged item and if possible include a detailed description, such as brand, model, and serial number. 

Urgent financial need

If you need urgent financial assistance let your insurer know, they may be able to fast track your claim and make an advance payment within five business days of you demonstrating your urgent financial need. Any advance payment may be deducted from the total value of your claim.

If your claim has been finalised within one month of the catastrophe, your insurer must give you 12 months from the finalisation date to ask for a review of your claim (for instance, if you think the insurer has not accurately assessed your loss), even if you have signed a release.

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East Coast flood event insurance update – 10 March

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East Coast flood event insurance update – 10 March

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News release

Thursday, 10 March 2022

The Insurance Council of Australia (ICA) today provided the following update on claims related to the South-East Queensland and New South Wales floods.

 

All claims

New claims% Increase$ EstimatePropertyMotor

Other

NSW

44,193

6,82318%$663m33,7249,431

1,038

QLD

73,823

3,3495%$1.107b61,48510,050

2,288

Total118,01610,1729%$1.77b95,209 (81%)19,481 (16%)

3,326 (3%)

Insurers are on the ground in two states supporting customers with their claims.

Under the ICA’s Catastrophe Protocol insurers triage claims to deal with the most urgent and severe first.

This means some policyholders with claims that are less severe (i.e., their home is habitable) may need to wait a few weeks until as assessor is able to review their claim.

As the clean-up moves into its second week in Brisbane and the Northern Rivers and gets underway in Western Sydney, insurers are cautioning that global materials shortages and local labour constraints will have an impact on the rebuild and recovery timeframe.

The Australian Bureau of Statistics reports that input costs to housing construction increased over the past 12 months by 12 per cent, with strong demand for building materials the main contributor.

A recent update from the Housing Industry Association (HIA) found that the availability off all skilled building trades declined further in the most recent quarter, with trades such as bricklaying, carpentry, joinery, roofing, and general building trades reporting the most severe shortages on record.

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

The Insurance Council welcomes comments by Prime Minster Scott Morrison yesterday that the Federal Government will focus on investing in infrastructure to make communities more resilient to extreme weather events like this flood.

The Insurance Council and insurers have been calling for an increase in Federal Government investment in this area to $200 million per year, matched by the states and territories.

We have previously welcomed commitments also made by the Federal Opposition to increase this investment.

Last month we released our Building a More Resilient Australia election platform and a supporting report from actuarial consultants Finity which highlighted Lismore as one of nine locations in need of urgent flood mitigation infrastructure.

This infrastructure and mitigation investment is vitally important to prevent future harm and devastation to these communities, as we know flood events will inevitably repeat.

What to do if your property has been impacted by flooding and storms

  • 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 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
  • If water has entered the property, do not turn on your electricity until it has been inspected by an electrician
  • Store damaged or destroyed items somewhere safe where they do not pose a health risk
  • 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

 

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