25 June 2021
The recent storms across Victoria, storms caused widespread devastation and resulted in tens of thousands of claims to insurers.
Warren Day, ob体育鈥檚 Victorian Regional Commissioner and Chief Operating Officer, joined ABC Melbourne Drive鈥檚 host, Raf Epstein, to discuss how to manage after a natural disaster, where to find help and dealing with your insurer.
Contact your insurer early and often
鈥楢t times like this, your insurer is the best source of advice and assistance. Contact your insurer early and often 鈥� they can tell you how they can help, they may be able to provide emergency accommodation and financial support and other services as part of your claim鈥�, Warren says.
聽鈥楩irst and foremost is your safety 鈥� people should only return to their properties when it is safe to do and they鈥檝e been cleared by the local authority.鈥�
鈥榊ou don鈥檛 have to wait to speak to your insurer to start cleaning up, but before you do anything, take photos or video to give to your insurer. Prioritise removing spoiled food, water or mud-damaged goods from your property that might pose a health risk.
鈥楾ake safe and reasonable steps to prevent any further damage to your property and belongings. For example, covering damaged roofs to prevent further water damage.
鈥楤efore making any repairs to your property, check with your insurer as they may need to authorise repairs and tradespeople鈥�, Warren says.
Don鈥檛 worry if you don鈥檛 have your insurance policy documents, your insurer will have those. If you can鈥檛 remember who your insurer is, contact the Insurance Council of Australia鈥檚 disaster insurance hotline (1800 734 621), and they will help you find your insurer. Some insurers are even proactively contacting their policyholders and we know some insurers have already had assessors 鈥榦n the ground鈥� since the weekend.
The Insurance Council has declared these storms and floods a 鈥楥atastrophe鈥�, which means these claims will have priority.
鈥楢sk your insurer or an authorised, trusted insurance broker or financial adviser to explain how to make a claim. The Insurance Council covers the .
鈥楰eep communicating with your insurer and ask questions if you don鈥檛 understand something鈥�, Warren says.
Watch out for fake tradespeople
鈥楿nfortunately, events like this can bring out 鈥榙isaster chasers鈥� 鈥� unscrupulous operators, so be on the lookout, and if in doubt, contact your insurer.
鈥楤e wary of anyone who asks you for payment up front OR to sign a contract immediately鈥�, Warren says.
Settling your claim
Consumers may be offered the option of having:
- the insurer manage their rebuild up to the value of the sum-insured, or
- a cash settlement (which can be a poorer financial outcome for the consumer based on the associated costs for building materials and suppliers).
Think carefully about a cash settlement as it may not cover the cost of repairs, nor will the work be guaranteed by the insurer.
If you have a mortgage, contact your lender to understand if they may use any cash settlement to reduce the loan instead of using the cash to fix (or replace) the damaged property.
Visit Moneysmart
Visit ob体育鈥檚 (www.moneysmart.gov.au) for further information on what to do after a natural disaster and to find contact details for free legal services, financial counsellors and crisis support services.