Explained: What you need to do in an ‘insurance catastrophe’

The Insurance Council of Australia has declared an Insurance Catastrophe in the wake of Cyclone Jasper. This is what you need to do if you find yourself in a disaster zone.

The Insurance Council of Australia has declared an Insurance Catastrophe in the wake of Cyclone Jasper, with more than 3,800 claims lodged between Cape York Peninsula and Mackay.

ICA chief operating officer Kylie Macfarlane assured Queenslanders that insurers were focused on supporting the recovery of customers.

“Insurers are here to help Far North Queensland and stand ready to help impacted policyholders through this challenging time,” Ms Macfarlane said.

“The clean-up has begun, but the full impact is still unfolding. Insurers are well-prepared to respond, regardless of the Christmas break, and are on the ground to support policyholders get back on their feet following this devastating event.”

MY HOME WAS DAMAGED, WHAT DO I NEED TO DO?

Disaster response teams, including assessors and claims specialists have already arrived to the disaster zone to provide assistance to affected policyholders in Far North Queensland.

“The most important step policyholders can take right now is to contact their insurer and get the claims process underway,” Ms Macfarlane said.

“Making a claim can happen at any point; you don’t need to know the extent of the damage, it simply gets the claim in the system and allows insurers to get moving on helping policyholders in their recovery.”

Val Wegner's home was inundated with flood water during the 2023 FNQ floods after Cyclone Jasper. Picture: Dylan Nicholson

Under the Catastrophe declaration:

– Claims from affected policyholders are given priority by insurers

– Claims are triaged to direct urgent assistance to the worst-affected property owners

– 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 task force has been established to identify and address issues arising from this catastrophe

– 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.

Key actions for policyholders:

– Safety First: Ensure property is secure and consult authorities before returning.

– File a claim as soon as possible.

– Start the clean-up: Document the damage by taking photos and videos of damaged property and possessions and remove items that would be unsafe or unsanitary to remain in the property.

– Check your policy about temporary accommodation and emergency funds.

Ree Sanders and her daughters lost everything after their Holloways Beach home was flooded following cyclone Jasper. Picture: Supplied.

YOUR INSURANCE QUESTIONS ANSWERED

If your house is deemed unliveable, does your insurer find you a residence long term (6-12 months) or should I be looking for a rental myself? If it’s the latter, is the rent covered?

Insurers can provide assistance with temporary accommodation, financial support, emergency repairs, or alternative shelter arrangements to help customers through a difficult time. It’s important to talk through the options available with the insurer.

If your insurer DOESN’T deem your house unliveable but you believe it clearly is and are stressing out about having to live with mud and mould, what should you do?

Most building and contents policies will cover mould damage if the mould damage has been caused by an insured event at the insured property. Mould damage that has occurred as a result of atmospheric conditions (or other cause), and not by an insured event at the insured property is unlikely to be covered by a policy. If a policyholder is unsure, they should contact their insurer for clarity on their individual situation.

Matt Simpson and Rob Ayre dump a waterlogged couch at Holloways Beach. Picture: Brendan Radke

If your vehicle is written off, how long is the process to get a replacement?

A range of factors will be considered by insurers when deciding whether a vehicle is written off, including the extent of the damage. The time frame for replacement will depend on several factors, such availability of the specific model and current supply chain constraints.

What should I do before the clean-up begins?

Before you start your clean-up, document the damage with photos and videos to support an insurance claim.

– Take photos before removing any water damaged or soaked items that may pose a health risk.

– Make a list of damaged items, including the brand, model and serial number if you can.

– Don’t throw away items that could be repaired unless they pose a health risk.

– Speak to your insurer before you authorise any building work.